Human Resource Management

1. Human Resource Management Keiichiro HAMAGUCHI

2. Chapter 2Section 3Historical Development of Industrial Relations

3. Industrial Relations in pre-war era

4. (a) Early Labor Movement in Japan • Weaker tradition of trade unionism (than Europe). • Ironworkers Union (first craft union) was formed in 1890s but failed because of repression of employers and government. • 1900 Public Police Peace Law (Article 17) prohibited unions’ activities. • There existed only individual wage bargaining.

5. (b) The Establishment of Works Councils in Japan • Labor disputes surged after Russo-Japanese War. • Government enacted Factory Law in 1909. • Employers opposed the legislation and argued “paternalism.” • Labor disputes surged again after WWI. • The Japanese Federation of Labor was formed in 1919, demanding legal rights.

6. Government declared it would not prevent moderate unions. • Government established Cooperation Association to promote harmonious industrial relations. • Cooperation Association proposed works councils legislation. • Employers refused to recognize independent unions but compromised on works councils. • Works Councils prevailed in large firms. • Employers recognized bargaining right for only works councils, excluding trade unions.

7. (c) The Penetration of Employer Paternalism in Japan • Large companies began to refrain from dismissals in 1920s. • Trade union movement shifted from large companies to small and medium sized companies. • Large firms fired union leaders and kept loyal workers.

8. Workers covered by works councils (640,000) outnumbered union membership (380,000) in 1934. • From early 1920s to mid-1930s, employers learned to maintain reputation. • Workers learned to appreciate employment security. • Workers’ interest shifted from class solidarity to company membership.

9. (d) Labor-Management Relations during World War II in Japan • Industrial Patriotic Front (Sampo) movement covered 4.8 million or 70% of total workforce. • Government shifted its stance from tolerating moderate unions to dissolving them. • Sampo covered all employees, both white-collar and blue-collar workers. • Many workers experienced joint labor-management consultation in Sampo councils. • Sampo contributed post-war enterprise unions.

10. Industrial relations in Post-War Era

11. Post-war Democratization in Japan • Under the governance of GHQ, labor movement exploded under the slogan of “democratization of management.” • Many workers (both white-collar and blue-collar) formed enterprise unions. • Radical unions carried out “production control.” • Many collective agreements stipulated “joint management councils.”

12. (b) Employers’ Counteroffensive and Eventual Settlement • GHQ policy shifted from encouragement to discouragement of radical labor movement. • Nikkeiren organized counteroffensive against labor. • Rationalization caused by deflationary policy provoked protest of unions. • Severe labor disputes took place between 1949 and 1954. • Radical union leaders lost. • Second unions became new enterprise unions. • Japanese style industrial relations established.