- Torrential Rains and Flooding in the Noto Region
- Regulations Governing Layoffs
- Killing of Japanese Schoolboy in China
- China's Complete Ban on Japanese Seafood Imports
- Election of New Constitutional Democratic Party President
- Nippon Steel
- Spring Labor—Management Negotiations
- Emissions Scandal Involving Toyota Motor Corp. and Toyota Industries Corp.
- JR East Data Tampering Misconduct
Torrential Rains and Flooding in the Noto Region
I am deeply saddened to learn of the loss of life caused by the torrential rains and flooding that struck Ishikawa Prefecture on September 22, and I offer my heartfelt condolences to all affected by this disaster. Moreover, I sincerely hope that those reported missing will all be found safe and unharmed.
My heart aches for the victims of this latest disaster, knowing it has dealt them yet another setback as they work to recover from the major earthquake that hit the region earlier this year.
Keidanren plans to team up with volunteer organizations and, through its One-Percent Club news, put out a call for donations, financial assistance, and other forms of support to help the victims and communities hurt by this disaster. Moving forward, we want to do what we can to get them the aid they need.
(In response to a question about the Chairman's plans to tour the disaster area) I already had plans to visit the area on the occasion of my trip to attend the economic conference scheduled to convene this November in Hokuriku region. However, in view of the damage caused by the heavy rains in this latest disaster, I want to consult with local officials there first to decide whether I will be making that tour as planned.
Regulations Governing Layoffs
(In response to a question seeking the Chairman's views on a proposal by some LDP presidential candidates to revise the regulations on employee layoffs, namely revisions to the four related requirements companies must satisfy) The four requirements were established by judicial precedent. At their root, they are intended to ensure the job stability and security of employees and should be respected.
In view of the drastic changes expected in Japan's industrial metabolism, the Kishida administration's "Council of New Form of Capitalism Realization" is pursuing "integrated three-pronged labor market reforms" based on (1) support for improvements in employee competence through reskilling; (2) adoption of a job-based employment system; and (3) improved labor mobility. Currently, the discussion of labor market reform is being pursued within this context. However, the suitability of regulations governing layoffs is not something that should be debated alone in a vacuum. Assuming it is debated at all, it should be carefully brought up as one of several issues on the agenda of a discussion aimed at addressing labor market reforms in their entirety. Diet member Shinjiro Koizumi has clearly stated that he is not insisting that the rules on layoffs be relaxed. My understanding is that he is calling for the rules to be revised basically as one of several actions aimed at promoting labor market reforms.
(In response to a question asking about the relationship between labor market fluidity and Japan's economic growth) Labor market fluidity does not imply enabling all workers to change jobs. It means increasing the choices for individual workers to take the initiative in shaping their careers and thus achieving self-fulfillment as the structure of industry undergoes dramatic changes in the years ahead. As such, this is something that will bolster the dynamism of the Japanese economy.
Although there is the question of whether a company should provide reskilling opportunities to employees that might later seek employment elsewhere, corporate employees are constantly expected to innovate, and reskilling is still necessary to facilitate internal labor mobility when a company launches a new business line. This is the era we are in, and companies that are not proactive about offering opportunities for reskilling and other forms of human resources development are less likely to attract job seekers.
Killing of Japanese Schoolboy in China
(In response to a question about the killing [on September 18] of a Japanese schoolboy in Shenzhen) I am grieved by the death of that young boy and extend my heartfelt condolences to his family. He might have become a bridge of friendship between Japan and China, and in that respect, his death is an enormous loss for both nations.
Nations that open their economies to the world have a duty to create a living environment that ensures the safety and peace of mind of the foreign nationals who relocate there with family members to work for the foreign corporations that enter their domestic markets. If that is not possible, those companies will not be able to achieve smooth and steady business operations. I have heard that Japanese nationals in China continue to be victimized, and that many posts on social media networks there contain baseless yet malicious anti-Japan sentiments. This latest incident has come at a pivotal moment, right when ties between Japan and China were on the mend. I would like to see China take action to create an environment where foreign nationals can reside with peace of mind. At the end of the day, it is fundamental for mutual exchange between nations that the employees sent on assignments abroad with their families like the destination country that has become their new home. We should all remember to keep that point in mind.
(In response to a question regarding the impact that the recent rash of incidents victimizing Japanese citizens will have on corporate investments in China) It's certainly not going to have a favorable impact. Should these incidents become commonplace, China will lose opportunities for direct investment in its economy.
China's Complete Ban on Japanese Seafood Imports
(In response to a question seeking the Chairman's views on the deal reached by Japan and China [on September 20] to work toward the lifting of a complete ban imposed by China on seafood imports from Japan) I welcome the news that both sides have reached a measure of understanding that will pave the way to a resolution of this issue. I hope they will deepen their dialogue on the basis of scientifically objective data and work steadily toward fully lifting the ban, and I would like to see that development lead to further improvements in relations between Japan and China.
Election of New Constitutional Democratic Party President
(In response to a question regarding the election of Yoshihiko Noda as the new president of the Constitutional Democratic Party [on September 23]) Mr. Noda is an influential politician with experience as prime minister. He is well-versed in matters of policy and an eloquent speaker. I look forward to the fresh momentum this could add to the CDP's debates with the LDP in the Diet.
Nippon Steel
(In response to a question regarding news reports that the US government had accepted Nippon Steel's reapplication for the acquisition of US Steel, pushing back a decision by the review committee) I am aware of those reports. If true, then the renewed review process will presumably take place within a much calmer atmosphere following the US presidential election. That's probably a good thing. Even with a renewed review, it is crucial that the process strictly comply with the law and reach a fair decision.
This case has attracted a lot of attention given that it is happening in the US, a nation where many foreign companies have made investments. I am interested in the outcome of this case and will continue to follow it.
Spring Labor—Management Negotiations
(In response to a question about discussions over next year's labor—management negotiations) Headed by Committee Chair Tetsuji Ohashi, the first session (on September 20) of the Special Committee on Management and Labor Policy was marked by a lively exchange of views.
I believe the labor—management negotiations next spring will mark the "establishment" phase. As an outcome of the aggressive push for wage increases by Keidanren, the negotiations in 2023 marked a "launch" phase, followed by an "acceleration" phase in 2024. Our hope is that we can make 2025 the "establishment" phase for this trend with negotiations for sustained wage increases.
To that end, however, it will be necessary to encourage awareness of the importance of appropriately passing on labor costs through prices for goods and services and promoting the wider acceptance of cost pass-through as a social norm. I am aware that some companies, including small and medium-size enterprises in particular, have implemented wage increases even though they have not yet shown a recovery in their business performance. Although it will be difficult if not impossible to completely transform business practices that have been in place for many years, Keidanren will continue its efforts to promote appropriate cost pass-through as a social norm.
Emissions Scandal Involving Toyota Motor Corp. and Toyota Industries Corp.
(In response to a question regarding news reports [dated September 22] that US corporate customers had filed a class action lawsuit alleging Toyota Motor Corp. and Toyota Industries Corp. misrepresented forklift engine exhaust emission levels) I will refrain from offering any detailed comments regarding legal cases involving specific companies. However, fraudulent behavior cannot be tolerated. Dishonest actions by global companies in their home markets will impact their business operations in other countries. I assume the judicial authorities involved in this lawsuit will reach an appropriate decision in accordance with applicable laws.
JR East Data Tampering Misconduct
(In response to a question regarding past data tampering misconduct by East Japan Railway Co.) Misconduct is unacceptable. It is essential that companies comply with established rules. This spate of corporate improprieties that compromise safety is a serious matter. Keidanren has been calling on its member companies to adhere to its Charter of Corporate Behavior and will continue working to ensure that the principles of the Charter are fully implemented.