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Enterprise unionism predominates
More than 90 per cent of unionized firms in
Japan have only one trade union. Industrial
unions or a second enterprise union may also
exist within a particular company, but enter-
prise unionism, in which membership isrestricted to a firms
employees, predomi-
nates.
This connection between the union and the
firm has led many people to equate enterprise
unionism with company unions. The wellbe-
ing of union members is tied to the companys
economic success. Improvements in wages
and working conditions require a viable com-
pany, so unions have a direct interest in work-
ing with management to increase productivity
and profitability. Union office can also be a
route to senior management. A survey of large
firms by the Japan Federation of Employers
Association has found that more than 15 per
cent of directors are former union officials.
Research involving almost 200 manufac-
turing unions in the Kansai region of Japan
reveals that the independence from manage-
ment of Japanese enterprise unions varies
considerably. Some unions have gone further
than others to emphasize the participation of
members and to reject management sponsor-
ship of day-to-day union activities. Otherunions see few
problems in, for example,
accepting management payment of union
officers wages or union expenses.
The level of collective barg aining
Around 8 per cent of the unions surveyed
were considered to be fully independent of
management. Some 44 per cent had partial
independence.
Japanese labour law allows unions to bar-gain collectively over
all matters which affect
their members at work. Yet many unions
prefer a less confrontational approach, such as
joint consultation. This is particularly the case
with issues such as staffing levels, manage-
ment and work practices, and matters which
threaten the economic performance of the
firm. Independent unions are more likely to
bargain over these issues. Collective bargain-
ing is particularly likely to occur over health
and safety and working hours.
Firms with independent unions tend to pay
their workers higher rates than companies
where the trade unions are more subservient.
While independent unions appear to be less
16 2
M anagement Development Review
Volume 10 Number 4/5 1997 pp. 162163
M CB Un iv ersi ty Press I SSN 09 62 -2 51 9
PerspectiveJapane se t rade unions:myt h and real it y
AbstractSo-called enterprise unions in which membership is
restr icted to a companys employees predominate in
Japan. Some are mo re independent from management
than others. Examines the differences.
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successful than more compliant unions in
winning extra annual leave, the members of
independent unions are more likely to take
their full leave entitlement. T his finding
demonstrates the pressure from bosses and
fellow employees which can be brought to
bear in firms where unions have less indepen-
dence from management.
Employee participation andcommunication
The success of Japanese manufacturing firms
is often attributed to their efficient manage-
ment practices, especially those involving
employee participation and communication.
The extent to which a company uses employ-
ee participation depends partly on the union.Where unions are
dependent on manage-
ment, they are often used as a communication
channel between management and employ-
ees. Where unions are strong and indepen-
dent, managers must develop other means of
communication with employees. These most
often include suggestion schemes and compa-
ny newsletters.
Companies with independent unions tend
to suffer more strikes. Industrial action in
firms with more subservient unions tends to
take the form of overtime bans, protest meet-
ings, the posting and distribution of handbills
and the wearing of ribbons and armbands.
Costs of t oo cozy a rela tionship
A policy of working closely with unions may
have benefits for the company, but it also has
costs. Employees with strong union represen-
tation are more likely to remain in the firm
than to leave their jobs. Contrary to expecta-
tions, however, absenteeism is highest formembers of independent
unions. Members
may be reacting to the level of conflict in the
firm. Alternatively, their absence may
represent another form of voice, albeit at an
individual level.
Independent unions rate their relationship
with management as poor, compared with the
climate which exists where unions are more
compliant. By rejecting management sponsor-
ship, and refusing to concede arguments
concerning company performance, indepen-
dent unions have strained their relationship
with management.
Post -w ar success sto ry
The main argument to be made in favor of
more compliant unions is the important role
they have played in the post-war Japanese
success story. The high level of co-operation
between these unions and company managershas helped Japanese
firms to make deep
inroads in the international marketplace to
the eventual benefit of unionized and non-
unionized Japanese workers alike.
The argument is increasingly heard in
Western nations that wage increases and
improved working conditions can be achieved
only when trade unions co-operate with man-
agement to ensure that the organization main-
tains and improves its competitive position.
This, however, is only part of the picture.Strong company
performance also depends
on good management. One aspect of good
management might involve learning to deal
effectively with truly independent trade
unions. As this article demonstrates, there are
disadvantages, as well as advantages, to hav-
ing a trade union which almost always com-
plies with the wishes of management.
This is a prcis of an article entitled A typology of
Japanese enterprise unions, which was originally
published inBr iti sh Journal of I ndustr ial Relations,
Vol. 34 No. 3, 1996, pp. 371-86. T he author was
John Benson, of the Faculty of International Stud-
ies, Hiroshima City University, Japan.
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Japanese trade union s: myth an d reality
Author/s
M anagement Development Review
Volume 10 Number 4/5 1997 162163
