Japan Press Weekly

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2010 November 10 - 16 [LABOR]

Regulate downsizing of large manufacturers: Kokuta

Japanese Communist Party representative Kokuta Keiji on November 10 at a Lower House Budget Committee meeting demanded that the government set certain rules to regulate the freewheeling streamlining of large corporations.

Kokuta first pointed out, “The number of employees continues to decline though Prime Minister Kan Naoto often says he will create ‘more job opportunities’.”

In fact, the number of employees has been reduced by 840,000 as of September from that in September 2008 or before Lehman Brother’s fall. The manufacturing sector alone cut its workforce by 760,000.

“The underlying cause of the loss of jobs is government’s negligence. You are letting large companies downsize without restraint,” Kokuta stated.

Naming specific corporations, he explained that 22,950 workers in 191 major manufacturers last year accepted early retirement and 10,687 workers in 65 companies have already taken early retirement in the first half of this year alone.

Prime Minister Kan said, “It is preferable to maintain employment but I refrain from having a say in the running of specific corporations.”

Kokuta also stressed the need to impose certain regulations on factory closures and business withdrawals in disregard of possible negative impacts on subcontractors, employment, and retailers in the local community.

The top five manufacturers that had an employment adjustment in the first half of this year due to plant closures or business downsizing were: SANYO Electric Co., Ltd. (2,000 jobs cut in 2 factories); Renesas Electronics Corporation (1,200-1); Mitsubishi Heavy Industries, Ltd. (1,070-1); Yamaha Motor Co., Ltd. (800-1); and Komatsu Ltd. (500-1).

Kokuta proposed that the government require large manufacturing companies to: hold consultations and explanation meetings with all the people concerned, including those in the local community, before closing or pulling out of operations there; make every possible effort to avoid shutting down or withdrawing operations there; try to minimize the possible damage to the local economy when deciding that a plant closure is unavoidable; and contribute funds to prevent local industries from going into bankruptcy with the plant closure.

The prime minister replied, “To hold some consultations (on the plant closure) may be good.” The minister of infrastructure said, “It’s not appropriate for politics to get involved in individual company’s decisions regarding operations.”
- Akahata, November 11, 2010