Government panel recommends introduction of a 'white-collar exemption' system

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Government panel recommends introduction of a 'white-collar exemption' system

The government Labor Policy Council on December 27 submitted to Labor Minister Yanagisawa Hakuo a report recommending a major adverse revision of labor-related legislation, including the introduction of a "white-collar exemption" system that removes restrictions on working hours.

The ministry will submit a bill to revise the labor laws in the next ordinary session of the Diet.

The white-collar exemption system will remove working-hour regulations (8 hours a day, 40 hours a week) from workers who are promoted to near managerial posts so that employers can force these workers to work longer hours without overtime pay.

The Japan Business Federation (Nippon Keidanren) calls for the system to be applied to workers whose yearly income exceeds four million yen, but the panel did not specify the income criterion.

Also included in the proposals was the establishment of a labor contract law that will enable employers to alter working conditions by changing work regulations.

However, objections from labor representatives as well as management representatives were attached to the report.

In the panel meetings, labor representatives were strongly opposed to a white-collar exemption system, saying, "It is a demand of corporations, not of employees."

Even management representatives said, "Due to the deep disagreements between labor and management, it's too early to propose the system."

In front of the labor ministry on the same day, about 200 workers staged a protest against the proposals.

National Confederation of Trade Unions (Zenroren) Vice President Ikuma Shigemi criticized the white-collar exemption system for threatening workers' health, and emphasized the need to increase public awareness to prevent labor-related legislation from being adversely revised.

The Kyoto General Council of Trade Unions President Iwahashi Yuji said, "Opinions of labor and management differ completely. It's outrageous to even submit the proposals."
- Akahata, December 28, 2006