What must be done to deal with crisis of jobs and survival of SMEs at year-end?

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

What must be done to deal with crisis of jobs and survival of SMEs at year-end? - Akahata editorial (excerpts)

With the end of the year approaching, taking measures to improve the employment situation and increase support for small- and medium-sized enterprises (SMEs) has become an urgent task for the government to undertake.

The number of those who stand in line to receive free meals is twice as many as last year. The government estimated that the number of unemployed workers whose unemployment benefits have expired and who have yet to find a new job will reach more than 230,000.

More serious situation than last year

The large number of SMEs are facing bankruptcy and suffering from funding problems. At the time of the year-end, many SMEs are having difficulties in just surviving.

SMEs play a key role in the Japanese economy by providing job opportunities and training. SMEs bankruptcies are an irrevocable loss to the Japanese economy.

As the Japanese Communist Party has proposed, the government should take measures to solve the unemployment issue, including extending the period of unemployment benefit payments and calling on large corporations to fulfill their responsibility to maintain employment. It is urgently required that the government improve the SME support program, including financial support for temporary closing, prevent major banks from refusing to lend money to SMEs, and prohibit large companies from exploiting subcontractors. The period of unemployment benefits can be extended as soon as the government decides to do so.

In response to JCP Chair Shii’s proposals regarding this issue made at the meeting with Prime Minister Hatoyama Yukio on December 14, Hatoyama said, “I will examine the JCP proposals point by point.”

The employment situation has increasingly deteriorated. If the government does not extend the term of unemployment benefits now, when will it reach a decision? Since the labor ministry argues that the current unemployment situation fails to meet the requirement needed to extend the term of unemployment benefits set under the government ordinance 30 years ago, the requirement criterion should be changed immediately.

The labor ministry predicted that the balance of reserve funds for the unemployment insurance system will reach 4.4 trillion yen at the end of March 2011. Using this reserve, the government should respond to the present emergency situation without delay.

Regarding large corporation’s employment responsibility, Hatoyama said, “I will find ways to prevent large enterprises from dismissing temporary workers and will also press the business circles to achieve this.” As for major banks’ refusal to lend money to SMEs and their forcible collection of loans from SMEs, Hatoyama said, “I will take thorough steps, including making public the names of companies.”

Stop wasting time

The Japan Business Federation (Nippon Keidanren) on December 14 submitted its “New strategy of growth” report to Economy Minister Naoshima Masayuki. In its strategy, Nippon Keidanren calls for a 10% cut in the corporate tax rate under the pretext of increasing international competitiveness.

The government should urge the business circles to stop cutting temporary jobs and imposing burdens on subcontractors and to take on social responsibilities.

- Akahata, December 18, 2009