Human Resource Management Keiichiro HAMAGUCHI

Chapter 3 Section 4 Assignment, Transfers and Disciplinary Action

(1) Promotion Promotion from within the company: Regular workers are assigned to different jobs rotating regularly and are gradually promoted to certain levels. Almost all managers are promoted within the same company. Even blue-collar workers experience job rotation and promotion to lower management at the workshop.

(2) Transfers within Single Company (Haiten) Flexible deployment of workers through transfers: Haiten, Shukko and Tenseki The purposes of Haiten are: To improve abilities by experiencing various jobs, To increase blue-collar workers’ understanding of production process, To guarantee equal opportunity and fair evaluation for workers, and To avoid economic dismissals in restructuring

(a) Abuse of the Right to Transfer With the increase of working couples, regional transfers have been contested. Supreme Court takes hard line in Toa Paint case and Teikoku Hormone case, saying that “the disadvantage is a normal inconvenience which workers should accept and endure.” Nissan Murayama Plant case denied job specification and allowed flexible deployment. This attitude reflects the necessity of transfers to maintain long-term employment.

(3) Transfers to another Company (Shukko) Shukko: transfer of a worker to another company maintaining the employment relationship with the original company The purposes of Shukko are: (1)to train young workers, (2)to shore up subsidiary, (3)to avoid economic dismissals, and (4)to absorb redundant older workers. Long-term employment practice is secured no longer within single company but within group. In practice, shukko is treated same way as haiten.

(4) Transfers to another Company (Tenseki) Tenseki: transfer of a worker and his employment status to another company (Original employment contract is terminated and new relationship is established.) Tenseki is a outplacement service carried out by the employer. Tenseki requires individual consent of workers.

(5) Mergers and Transfers of Undertakings In mergers, all rights and duties are automatically transferred to acquiring company including employment relations. In transfers of undertakings, employment relations may or may not transferred according to transfer contract (irrespective of workers’ will). Japan has no legislation on this issue, but some lower court decisions protect excluded workers.

(6) Succession of Employment Relations under the Company Division 2000 Labor Contract Succession Law protect workers engaging mainly separated division from exclusion. But this does not apply transfers of undertakings. Unlike European societies, Japan lacks specific jobs, and automatic transfer of workers with jobs is difficult.

(7) Equal Treatment on Assignment and Promotion 1997 revised EEOL prohibited any discrimination in assignment and promotion against women Bill for EEOL (under discussion in the Diet) is to extend the scope to allocation of duties and granting authority.

(8) Long-term Employment and Disciplinary Measures Japanese companies take various disciplinary measures because dismissals for misconducts are strictly limited. Japanese companies take even informal punitive measures which is difficult to distinguish from job-related orders.

(9) Types of Disciplinary Measures (a)Reprimands (Kenseki) and Warnings (Kaikoku): to admonish a worker for his misconduct (b)Wage Decreases (Genkyu): may not exceed 10% of total wage. (c)Suspension (Shukkin Teishi) (d)Demotion (Kokaku) (e)Disciplinary Discharge: without notice and severance pay

(10) Grounds for Disciplinary Measures (a)Violation of Job-related Order (including transfers, overtime or holiday work): Refusing overtime order constitutes ground for disciplinary discharge (Hitachi Ltd. Case). (b)Falsification of One’s Past Record (c)Misconduct in One’s Private Life (d)Dual Jobs (e)Violation of Enterprise Order (such as prohibition of political activities)

(11) Appropriateness of Disciplinary Measures Disciplinary actions can be nullified if found to be abuses of rights. Disciplinary punishment must be proportionate. Due process is required such as opportunity to explain and defend worker’s acts.