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Industrial relations in japan

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Industrial relations in japan

  1. 1. Industrial Relation in Japan <ul><li>Employment system : </li></ul><ul><li>Seniority –based employment </li></ul><ul><li>Stable employment </li></ul><ul><li>Wage system: </li></ul><ul><li>Pay monthly basis </li></ul><ul><li>Wages are increased in accordance with worker age or length of the services. </li></ul><ul><li>Wages are determined under skill based grade system. </li></ul><ul><li>Bonus system: </li></ul><ul><li>Paid twice in a year. </li></ul><ul><li>Amount of bonus is determined by the annual collective bargaining agreement. </li></ul>
  2. 2. Trade union <ul><li>  Three-tier hierarchical structure: </li></ul><ul><li>Enterprise-based unions - utilize negotiations and labor-management consultations in the workplace to improve working conditions </li></ul><ul><li>Industrial federations - exchange information on common working conditions in the industry, discuss industrial policies and other problems </li></ul><ul><li>The National center (RENGO) - defending the employment and livelihoods of all working people. </li></ul><ul><li>Only regular workers can make and join trade union. </li></ul><ul><li>Unions are comprised both of white-collar and blue-collar workers. </li></ul>
  3. 3. Collective bargaining <ul><li>“ Shunto ” or “ spring offensive ”- devised by Sohyo Labor Federation. </li></ul><ul><li>it refers to the annual wage negotiations between the enterprise unions  and the employers. </li></ul><ul><li>it was the key to boosting the comparatively low wages and to improving working conditions and other benefits. </li></ul><ul><li>It is industry wide unified struggle. </li></ul><ul><li>Dispute Settlement: </li></ul><ul><li>Under Labour Relations Adjustment Law, unions and management should first settle disputes between themselves </li></ul><ul><li>If settlement fails, they can ask for support from Labour Commission </li></ul>
  4. 4. Difference with India <ul><li>JAPAN </li></ul><ul><li>Seniority based wage system </li></ul><ul><li>Bonus paid twice in a year. </li></ul><ul><li>Bonus is 20% of annual wages. </li></ul><ul><li>Stable employment </li></ul><ul><li>Only regular workers can make and join trade union. </li></ul><ul><li>INDIA </li></ul><ul><li>merit based wage system </li></ul><ul><li>Bonus paid once in a year. </li></ul><ul><li>Minimum bonus is 8.33% and maximum is 20% of basic . </li></ul><ul><li>No stable employment </li></ul><ul><li>Both regular and temporary worker can join in trade union. </li></ul>
  5. 5. conclusion <ul><li>Japanese industrial relation are rapidly changing </li></ul><ul><li>Spring offensive has begun to collapse – start joint consultation. </li></ul><ul><li>Seniority based wage system is now changing. </li></ul><ul><li>Life time employment system is also declining. </li></ul>