ABSTRACT

A major reason why the Japanese post-war economy experienced rapid growth up to the 1990s, and had little unemployment compared to the other industrialized countries, was the stability of the industrial relations system. At the Japanese Trade Union Confederation there is a broad acceptance of the need to move away from a wage system centred on seniority and equality. Globalization and economic stagnation have left Japanese unions with little room to manoeuvre or to pursue the twin objectives of job security and wage increases. The internationalization of the Japanese economy and the rationalization of key industries in the 1970s led to the divisions within the labour movement being seen as a key impediment to the advancement of the labour cause. The role of unions in Japan is becoming an important issue for debate and it is possible that a 'new deal' between unions and companies will be formed.