ABSTRACT
The impact of recession during the 1990s and the sharp decline of trade union membership and influence have significantly weakened the bargaining stance of Japanese industrial unions. The annual shunto wage round has faced much stiffer opposition from the employers. The content of current wage negotiations has seen the reduction in the traditional fixed elements in the basic wage, and the decline of the value of annual increments based on tenure. The determination of annual pay is being settled by a greater variable lump sum in the salary structure. The future direction of the Japanese employment relationship appears to be directed towards greater levels of internal expertise and professional knowledge as new criteria for advancement in the firm. The shift to reward through personal ability and away from a pattern of predictable fixed increments has had an impact on union influence. Union weakness has eroded both moral and union representation. The sharp rise in personnel issues caused by restructuring and increased employment transfers has placed considerable burdens on union officers with greater time spent in involvement in company participation meetings. Even the largest Japanese unions face severe difficulties finding rank and file members willing to put themselves forward for election to union officer posts (Kato, 2000).
