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Japanese Industrialisation got underway in the decade following the Meiji Restoration of 1868 (Abegglen 171). This period marked the end of feudalism in Japan and her entry into the world as an industrial nation. The first industrial enterprises were founded by the Japanese government, but by the 180s, had passed into the hands of select, powerful industrial families. Japans transition from a primarily agrarian and inward society to an industrial nation placed demands on the relationship between employers and employees. New forms of work organization accompanied the adoption of western originated technology and these required a reworkng of the authority relationships in Japanese society.
Lifetime employment as a form of linkage between employers and employees can first be seen in an industrial setting after World War one. Western mass manufacturing equipment in Japan demanded a different set of skills from workers than the craft work with which they previously dealt. Thus, their profile as polyvalent workers was undermined in the direction of single skilled repetitive tasks. Skilled workers witnessed the erosion of the basis upon which they had previously marketed themselves, and with that, their livelihood threatened. They reacted by demanding increased employment security from factory owners in the form of lifetime employment and payment based on length of service in order to ensure the maintenance of their standard of living.
This early manifestation of lifetime employment runs in parallel with another development which introduced the concept into an industrial setting. Most of the skilled workers up to world war one were provided through a master craftsman or Oyakata system. The Oyakata trained industrial workers and had a monopoly of skilled labour. Effectively, they became middle men between skilled labour and the owners of enterprise. After World War One, major skill shortages forced factory owners to rethink the efficacy of this method of skilled worker supply. They began to try to recruit directly and absorb the training function inside the factory system. The Oyakata retaliated at this intrusion into their monopoly by attempting to form early industrial unions. Others were won over in their resistance with promises of lifetime employment and payment based on their seniority over other staff (Sumiya 174).
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The emergence of lifetime employment and remuneration linked to age and seniority was congruent with social arrangements in Japan which predated industrialisation. Just as agrarian workers were linked to feudal lords in a supracontractual manner, so too did early industrial workers come to look on their employers to provide more than merely a job to attend. Thus, a familialism pervaded social arrangements in early Japanese factories with many offering welfare facilities, dormitories to accomodate labour coming from outlying rural areas and longterm employment relationships. Adversarial industrial relations did not flourish in these circumstances and few trade unions were formed. It was not until after world war two that the labour movement exerted a strong voice in industrial matters.
Japan surrendered unconditionally to the Allied powers on August 14, 145. By 146, she had a new constitution dictated largley by the Supreme Command of the Allied powers under General Douglas Mac Arthur. The democratization policies of the Allies included explicit reference to the emancipation of workers. This was revolutionary in Japanese terms and sparked off a wave of frenetic labour activity which saw the setting up of numerous unions and the mass organization of workers on an unprecedented scale. By 148, trade union density stood at 56% or six million workers. Pragmatism in the midst of post war chaos resulted in the foundation of labour unions organised on an enterprise by enterprise basis. Another factor in the evolution of enterprise unions as the primary form of labour organization in Japan was the existence of wartime factory production committees. These became a locus for coordination of workers swept up by the fervour of postwar democratization. Today, there are over 76,000 enterprise based unions in Japan and the vast majority of these are in organizations employing over 100 workers (Kuwahara 1).
Enterprise based unions organise the union activites of all blue and white collar regular employees in an organization. Regular employees are those enjoying the priveleges of lifetime employment and payment based on length of service. These two pillars of Japanese employment were reinforced after World War Two. Labour unions were in the ascendancy and demanded employment security for their members, as well as increased payments to reflect greater responsibilities of older workers. So, although length of service was replaced by age as the determining factor in remuneration after the second world war, the overall development of this model of longterm employment was reinforced.
Today, there is a very indistinct demarcation between blue and white collar workers, another legacy of events in the post World War Two period. Many of the priveleges accrued by white collar workers prior to the war were eroded, particularly in terms of salary differentials with blue collar workers by way of wage restraints during the war. Wages for blue collar workers were artificially raised during the war to promote armaments productivity and thus by the end of the conflict, the wages and conditions of the two groups had converged. When it came to mobilising support for the labour movement, white collar workers found that it was in their interest to join ranks with their blue collar colleagues rather than attempt to maintain privileges which no longer existed. Added to that, democratisation policies promoted egalitarianism, not elitism, encouraging a breakdown in distinctions between groups of workers. Enterprise unions generally do not include in their ranks atypical workers like temporary or part-time employees. This poses a challenge to industrial relations in Japan because with the decline in the manufacturing sector since the mid 170s and shift towards the service industry, numbers of regular employees have declined. Unless labour unions in Japan broaden their scope in terms of recruitment beyond regular employees, union density will continue to decline. In 11, union density hit a low of 4% from 4% in 175 (Kuwahara 1).
Unionism also operates at a national level with federations of enterprise unions, generally organised by industry. These federations organise and co-ordinate the activities of enterprise unions as well as lobbying on issues of general interest to all industry members. At a national level, Rengo was formed in 18. It operates as a centre for public and private sector union federations. Its activities include high level lobbying on the part of the labour movement and the organization of activities which draw together federation members from all over Japan. Notwithstanding trends towards centralisation in the last decade, it has to be said that in terms of activities and resources, the principle locus of labour movement power in Japan is at the level of the enterprise.
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