March 26, 2013

Prime Minister Abe Shinzo on March 25 for the first time expressed his eagerness in the Diet to relax rules banning corporations from dismissing workers arbitrarily.

Abe at the House of Councilors plenary session said that he will shift the focus of the government employment policy from employment protection to a more flexible labor market in order to more easily move labor resources to growth industries.

The PM made this remark in response to the business circle’s demands.

Taking various occasions like a meeting of the governmental panel on industrial competitiveness, the business circle has repeatedly demanded that the government increase labor market flexibility by changing labor legislation to one stating that companies can cut their workforce whenever they want without having to state specific reasons.

At present, when companies want to slash jobs, they need to follow strict rules such as presenting an adequate reason for initiating job cuts.

Abe indicated that revision of the rules on dismissal should be carried out after sufficient discussions between labor and management.

He also pointed out, “Workers make a living with their wages and create various ties in society through their jobs,” while citing an argument that relaxation of the dismissal rules will provide workers more opportunities to change their workplaces.