Japan’s Gradual Transformation
Corporations, Globalisation and the Law series
Edited by Luke Nottage, Leon Wolff and Kent Anderson
Chapter 3: The Death of Lifelong Employment in Japan?
Leon Wolff Lifelong employment in Japan is more trope than literal fact. As a synecdoche, it encapsulates Japan’s system of industrial relations. As a metonym, it epitomises the employee-oriented communitarian firm (Abe and Shimizutani, 2007, p. 347). As a metaphor, it represents Japan’s distinctive form of stakeholder capitalism (Dore, 1993). Yet none of these tropes holds as a truth. Lifelong employment does not signify the dominant form of employment in Japan. It does not privilege employees’ interests over business concerns. And it does not constitute a benign, kinder form of capitalism compared with the market-based model. If there is one trope that best describes the institution of lifelong employment in Japan, it is irony. As this chapter will show, lifelong employment is not an institution at all. If anything, it applies to less than 20 per cent of the working population, mostly male workers in large companies or public institutions – and, even then, only for a portion of their working lives (Hiwatari, 1999, p. 275; Marshall, 2005, pp. 103–4). Nor, to the extent that it does exist, is its exclusive concern with guaranteeing lifetime job security. Rather, both in practice and in law (Araki, 2000, 2005, 2007; Yamakawa, 2001), it enshrines ‘flexicurity’ (Wilthagen and Tros, 2004) – a combination of security of employment and flexibility of working practices. Nor is it innately ‘Japanese’. It is neither a cultural form of co-operative, communitarian capitalism (for example, Jacoby, 2005a, 2005b, 2005c) nor an a priori institutional pillar of an alternative economic design...
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