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The culture of working for life in Japan has survived war and earthquakes and is now a pandemic Jobs in North Iowa

 


This is because Japan’s practice of sticking to workers through economic turmoil can backfire, they say, because doing so can make companies and their employees less nimble. A fifth of the population working for the same company has been employed for more than 20 years in Japan, or twice the same number in the United States, according to government data.

People walk through a pedestrian crossing in the Ginza shopping district in Tokyo on June 24, 2020.

Eugene Hoshiko / AP

“The biggest problem in the job market in Japan is stubborn insistence on pay with seniority,” said Jesper Cole, a senior advisor at the fund management firm. wisdom.

Legal obstacles also make it difficult for companies in Japan to cut jobs compared to their Western counterparts. The Employment Contract Act, for example, stipulates that dismissal will be void if it is “not deemed appropriate by the general terms of society.”

In practice, human resource managers say workers are seldom fired, with companies preferring to negotiate a voluntary retirement package that often includes a generous reward.

Even at that time, Japan’s social contract dealing with loyalty to job security was so strong that breaking it would undermine the company’s ability to employ future talents. At the height of the virus outbreak, for example, Toyota CEO Akio Toyoda promised to protect jobs by offering this history lesson: Toyota made pots, pans, and potatoes grown after World War II because it was determined to do everything it allowed to save staff.

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