Japan Press Weekly

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2012 July 25 - 31 [POLITICS]

Gov’t bill to cut public services and workers attracts criticism

A bill to authorize ministers to downsize or discontinue public services has provoked criticism from the public.

The national government in May submitted to the Diet a bill to revise the Act on General Rules for Incorporated Administrative Agency.

There are now 102 independent administrative corporations in Japan. These institutions, such as the National Cancer Center, the Japan Housing Finance Agency, and the Japan Student Services Organization which manages scholarship systems, have been playing an important role in supporting people’s lives.

The bill intends to change the name of such institutions into a mere “administrative corporation” and limit their independence. Moreover, it will divide the corporations into two groups, “mid-term objective” corporations and “executive administration” ones.

“Mid-term objective” institutions are to set a 3 to 5 year goal under the instructions of a minister in charge. Some years later, their progress status will be examined. If the minister judges such agencies “useless”, he/she can shut them down.

And what is even worse, workers at administrative corporations, instead of being transferred to another office, may lose their jobs when their institutions are shut down. According to the bill, the management of corporations is supposed to only help workers find a new job.

As of now, the number of corporations to be reorganized into “mid-term objective” ones is 71, with approximately 50,000 employees.

The Liaison Council of Labor Unions in Public Corporations opposes the bill, saying, “The bill is anticipating mass dismissals with the intent to discontinue or downsize administrative corporations.”

The Japan Lawyers Association for Freedom also issued a statement, stating, “The bill is absolutely unacceptable as it cuts public services over a wide area of people’s lives, seriously affects workers’ lives, and violates their rights.”