Towards a "secure society based on work"
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This year marks the 50th anniversary of Japan’s accession to the OECD. In 1964, the year of its accession, Japan was in the midst of an era of high economic growth. In that same year, Tokyo hosted the first Olympic Games to take place in Asia, and four years later, Japan’s economy surpassed Germany’s to take second position globally.
There are clear differences between then and now. Japan has entered an era of population decline with the most rapidly ageing population among developed countries worldwide. Governments and social partners such as RENGO, Japan’s trade union national centre, must do more to foster opportunities for dialogue and to share knowledge and ideas with the aim of building a secure society based on work.
After the recent global financial and economic crisis, RENGO embarked on a debate about the social and economic model that could serve as an alternative to neo-liberalism, which led to the crisis in the first place. RENGO began defining the vision of society that Japan should pursue, based on five policy principles, namely, solidarity, fairness, discipline, cultivation and inclusion. “A secure society based on work” is a society in which anyone, regardless of their age, gender or ability (including disability), is able to play an active part in society through various ways of working, and under fair labour conditions. It is about achieving social and economic independence in a mutually supportive environment.
A society develops only when people work and support each other. People interact with one another through the world of work, in households, firms, volunteer activities and beyond. “Working” bolsters society by giving it financial strength and funds it through taxes and social insurance premiums.
But society has been struggling lately. We have seen, in many places in the world, an increase in the number of people who are unemployed or unable to work due to labour market difficulties or family responsibilities. These people quickly become excluded from society and end up living in isolation and poverty. This vicious circle has led to a widening social gap, which labour market deregulation and cuts to welfare spending have simply made worse.
RENGO believes that by eliminating the various difficulties associated with employment and by building paths–or “bridges of security”–to the world of work, people’s wellbeing and sense of security will not only be enhanced, but they will feel more enthusiastic and productive at work, too.
Five bridges of security are needed, based on five broad policy areas (see diagram): first, measures to allow people to obtain the skills needed to work; second, measures to enable people to remain active despite family obligations such as child and elderly care; third, action to promote flexible work schedules to balance work and family life and promote well-being; fourth, efforts to provide proactive employment measures such as training; and fifth, measures to provide support for older workers wishing to remain in the labour force and retire later.
To build these bridges, a policy incorporating the following four elements is needed. First, a multi-layered safety net must be constructed. We have seen growing insecurity in employment, which should in itself be the primary safety net. There are more non-regular workers and more working poor. In parallel, more people are unable to obtain unemployment insurance, which serves as the second safety net.
RENGO recommends creating a trampoline-style safety net that allows people to undertake job training, while providing them with conditional income support. To support this initiative, policies would need to be developed that link employment/labour policy with social security and education policy, as well as industrial policy. After all, a key aim is employment creation.
The second issue is to raise income levels, including raising the minimum wage. The principle of equal pay for work of equal value should be incorporated into economic systems. It goes without saying that to guarantee a decent wage, we, trade unions, must strengthen our organising efforts and spread the benefits of collective labour relations to as many working people as possible.
The third issue is to revive a solid middle class. To achieve sustainable growth, it is important to correct the labour’s distorted share of income, rebuild society centred on the middle class and stimulate domestic demand. Income redistribution must also be improved, through social benefits and the tax system.
Lastly, there is the role of the international framework, so that global business respects and enhances the value of work, and does not bid it down so low as to lead to even wider social gaps. As globalisation accelerates, it will be necessary to establish an international framework in order to ensure competition under fair rules. Having an international framework is critical, particularly for the financial sector, to address issues including pernicious cross-border speculative funds.
For the vast majority of people in the world, the route to advancement is via normal work, and work is the cornerstone of a decent, secure and prosperous society. No challenge can be overcome without working. For policymakers everywhere, building a world based on secure work is therefore the only way forward.
*RENGO is a member of the Trade Union Advisory Committee (TUAC) to the OECD
References Koga, Nobuaki (2014), “Marking economic growth and social progress” in OECD Observer No 298, Q1 2014. Visit www.jtuc-rengo.org Visit www.tuac.org
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Nobuaki Koga, President, Japanese Trade Union Confederation (RENGO)*
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