Perspective Japanese trade unions: myth and reality

Enterprise unionism predominates

More than 90 per cent of unionized rms in Japan have only one trade union. Industrial unions or a second enterprise union may also exist within a particular company, but enterprise unionism, in which membership is restricted to a rms employees, predominates. This connection between the union and the rm has led many people to equate enterprise unionism with company unions. The wellbeing of union members is tied to the companys economic success. Improvements in wages and working conditions require a viable company, so unions have a direct interest in working with management to increase productivity and protability. Union ofce can also be a route to senior management. A survey of large rms by the Japan Federation of Employers Association has found that more than 15 per cent of directors are former union ofcials. Research involving almost 200 manufacturing unions in the Kansai region of Japan reveals that the independence from management of Japanese enterprise unions varies considerably. Some unions have gone further than others to emphasize the participation of members and to reject management sponsorship of day-to-day union activities. Other unions see few problems in, for example, accepting management payment of union ofcers wages or union expenses.

Abstract So-called enterprise unions in which membership is restricted to a companys employees predominate in Japan. Some are more independent from management than others. Examines the differences.

The level of collective bargaining

Around 8 per cent of the unions surveyed were considered to be fully independent of management. Some 44 per cent had partial independence. Japanese labour law allows unions to bargain collectively over all matters which affect their members at work. Yet many unions prefer a less confrontational approach, such as joint consultation. This is particularly the case with issues such as stafng levels, management and work practices, and matters which threaten the economic performance of the rm. Independent unions are more likely to bargain over these issues. Collective bargaining is particularly likely to occur over health and safety and working hours. Firms with independent unions tend to pay their workers higher rates than companies where the trade unions are more subservient. While independent unions appear to be less 162

Management Development Review Volume 10 Number 4/5 1997 pp. 162163 MCB University Press ISSN 0962-2519

Japanese trade unions: myth and reality

Management Development Review Volume 10 Number 4/5 1997 162163

Author/s

successful than more compliant unions in winning extra annual leave, the members of independent unions are more likely to take their full leave entitlement. This nding demonstrates the pressure from bosses and fellow employees which can be brought to bear in rms where unions have less independence from management.

Employee participation and communication

The success of Japanese manufacturing rms is often attributed to their efcient management practices, especially those involving employee participation and communication. The extent to which a company uses employee participation depends partly on the union. Where unions are dependent on management, they are often used as a communication channel between management and employees. Where unions are strong and independent, managers must develop other means of communication with employees. These most often include suggestion schemes and company newsletters. Companies with independent unions tend to suffer more strikes. Industrial action in rms with more subservient unions tends to take the form of overtime bans, protest meetings, the posting and distribution of handbills and the wearing of ribbons and armbands.

represent another form of voice, albeit at an individual level. Independent unions rate their relationship with management as poor, compared with the climate which exists where unions are more compliant. By rejecting management sponsorship, and refusing to concede arguments concerning company performance, independent unions have strained their relationship with management.

Post-war success story

The main argument to be made in favor of more compliant unions is the important role they have played in the post-war Japanese success story. The high level of co-operation between these unions and company managers has helped Japanese rms to make deep inroads in the international marketplace to the eventual benet of unionized and nonunionized Japanese workers alike. The argument is increasingly heard in Western nations that wage increases and improved working conditions can be achieved only when trade unions co-operate with management to ensure that the organization maintains and improves its competitive position. This, however, is only part of the picture. Strong company performance also depends on good management. One aspect of good management might involve learning to deal effectively with truly independent trade unions. As this article demonstrates, there are disadvantages, as well as advantages, to having a trade union which almost always complies with the wishes of management.
This is a prcis of an article entitled A typology of Japanese enterprise unions, which was originally published in British Journal of Industrial Relations, Vol. 34 No. 3, 1996, pp. 371-86. The author was John Benson, of the Faculty of International Studies, Hiroshima City University, Japan.

Costs of too cozy a relationship

A policy of working closely with unions may have benets for the company, but it also has costs. Employees with strong union representation are more likely to remain in the rm than to leave their jobs. Contrary to expectations, however, absenteeism is highest for members of independent unions. Members may be reacting to the level of conict in the rm. Alternatively, their absence may

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