 JR West derailment and 18 years of 'profit-first policy' after privatization of JNR With the headline, "West Japan Railway Co. (JR West) outrageous profit-first policy; 18 years after the privatization of Japan National Railways (JNR)," the May 15th issue of the Akahata Sunday edition featured the background of the April 25 derailment in Amagasaki, near Osaka, that killed 107 people. Its full story is as follows: The fatal derailment occurred against the background of JR's management policy that gives highest priority to maximizing profit over ensuring safety. JR West reported profits of 74.4 billion yen in FY 2004, about 1.5 times greater than that of FY 1998. However, in the same period, the railway company drastically cut the cost for introducing the Automatic Train Stop (ATS)-P system, a key safety measure, from 2.1 billion yen to 0.5 billion yen. The number of JR West employees has decreased by nearly 20,000, from 51,530 in 1987 to 32,850 in 2004. As a result, many workplaces are understaffed. It is not unusual for off-duty drivers to be called up for extra shifts. JR West has 4,100 train drivers, while 1,580 drivers are in their 20s, only 19 are in their 30s, and the rest are over 40. This uneven composition of age groups makes it difficult to hand drive skills down to younger workers. Despite this, JR West is pushing ahead with a reduction of 6,000 personnel. In March, JR West issued a mid-term business plan (2004-2008) to ensure a minimum yearly fare revenue of 756.6 billion yen and diminish downtime. In order to implement these goals, JR West's Osaka Branch Office head called for "earnings" to be the top priority for FY 2005. As part of the effort to "increase revenues," JR West is organizing a campaign called "Operation Rainbow." In addition to routine work, JR West requires clerks in back-office sections to work to achieve a 350,000-yen increase in revenues in the first half of the fiscal year. The target is 250,000 yen for station employees, and 200,000 yen for drivers and conductors. If they achieve good results in the sale of various products, including coupon tickets for Shinkansen (bullet train) lines and group tickets, they will be awarded by the president. In order to increase sales, they hold a variety of events at their own expense, such as workshop trips, branch managers' golf tournaments, and farewell parties for retiring workers. They even ask family members, associates, and related-businesses people to participate in these events. A worker participated in day trips to the Kinosaki (Hyogo Prefecture) spa and to Amanohashidate (Kyoto Prefecture) for a crabmeat dinner. He said, "Those who participated in trips organized by the workshop's social club had to pay about 20,000 yen each for tickets, express fares, and crabs, although JR employees entitled to half fares. But by forcing us to pay all the expenses, they added the amount we paid to the increase in revenues. It's like breaking our backs." They even talk about going on a trip to eat crabs again in order to make up for errors on the job. It is said that when someone makes a mistake but declares, "I will make efforts to boost profits," in an essay of remorse, this person is forgiven. JR West reflects one's good profit performance in a lump-sum allowance. Time to change corporate culture "Ensuring the safety of transportation service is our greatest mission." The "Safety Program" of the Japan National Railways started with this statement. After the JNR was privatized and divided in 1987, JR West downgraded the "Program" to "Safety Guidelines." Many accidents have occurred, including the Shigaraki Kogen Railway train collision in 1991 that killed 42 people and a 2002 accident between Osaka's Amagasaki and Tsukamoto stations killing a rescuer and injuring his partner. As a result of the tenacious drive by the National Railway Workers' Union (Kokuro) to ensure railway safety, the company in April upgraded the "Guidelines" to "Safety Charter." * * * The Kokuro West Japan chapter on May 9 made representations to JR West requesting the company make efforts to prevent accidents. The union has demanded that JR West change its corporate culture that gives priority to securing profits to one of ensuring safety, make investments in safety measures, and strive to investigate the cause of accidents instead of laying the blame on workers' responsibility when it provides them "reeducation." It has also urged the company to change its tight train schedule as well as establish labor-management safety meetings and a committee for safety measures inviting outside professionals. - Akahata Sunday Edition, May 15, 2005 |