White collar workers in contemperory Japan

JULY-SEPTEMBER, 2002

VOL. 3 NO.3

White collar workers in contemperory Japan

Introduction

At present, conditions of workers are becoming worse in all aspects. The Mass Media has been reporting the change using such severe expressions as “employment destruction” or “wage destruction”. Among all, white-collar workers are in particularly deteriorated conditions. It is indeed a time of “ordeals for white-collar workers”.

In this article, I would like to shed light first on such conditions of white-collar workers. I want to conditions (especially of 1990’s) from all aspects, compared with their condition in former times. For this, it should be necessary to make sure the concept of white-collar workers (what white-collar workers are), and the number and internal structure of them.

Secondly, not only the deterioration of the conditions but also the differentiation of the stratum in white-collar workers is ongoing. The very position of white-collar workers is collapsing, and those in the “upper stratum” are now subjected to concentrate attacks of “streamlining” carried out in name of industrial restructuring. In connection with such changes I will present the possibility and perspectives for the movement of these workers.

1. Conditions of White-Collar Workers in 1990’s

(1) What are White-Collar Workers?

First of all, let us consult the “General Dictionary of Social Science” (Shakai Kagaku Sogojiten, Shin’ nihon Shuppan Co., Ltd.) Let me quote only the point of the entry “White-collar and blue-Collar;” it say: I) “it is a common idea to identify workers by classifying them into those who wear white collars engaging in clerical, managerial and technological work (white-collar workers), and others who wear blue work clothes in the work site (blue-collar workers)”; 2) “Being employed by the capitalists without possessing any means of production, both white-collar and blue-collar workers equally belong to the working class.”

The dictionary defines that the term of white-collar workers consist 1) a ‘Common idea” and 2) belongs to the working class. This might be a definition which goes without saying, but it is of significance 1) to avoid attaching too much importance to the concept of white-collar and 2) in light of the circumstances that there is a deep rooted view which excludes white-collar workers from the working class (or places them between the capitalist class and the definition is particularly significant in that it clearly points out white-collar workers belong to the working class, in relation to the following view:

“To confirm the concept and range of the working class should be a very important question in connection with the social basis of the working class movement. To confirm theoretically and demonstratively that a greater part of what is called white collar workers, who have emerged as a new force, constitutes the working class, will shed light on the fact that the social basis of the working class movement has expanded upon the unified class interests, among the different segments and strata of the working class”

“Kazuo Ishida, “White-Collar labour in Modern Companies vol.1, “Change in composition of the working class and White-Collar Labour,” Otsuki Shpten.

This indication is of great importance. Inspite of its properness, however, the word “a greater part” used in the phrase ë a greater part of white collar workers constitutes the working class,” seems unnecessary. If you say “a greater part” the question naturally arise concerning what the remaining “small part” should be. If it (small part of white-collar workers) supposes managers and practicing physicians or lawyers, it would only make the concept of white-collar unclear.

This is because of the background that the term “white-collar”originally came into usage as a common name for a new type of workers who had emerged during the period between 19^th and 20^th centuries, as “a certain stratum” engaging in managerial, technological and clerical work, distinct from the workers who existed at that time (working in sites or physical labour)

In short, in the same way as blue-collar workers are blue-collar as segment of the working class white collar workers a are white-collars as a segments of the working class. It definitely is classification inside the working class. Consequently even though there is a group of people wearing white-collar shirt outside the working class (needless to say, medical practitioners are one example,) they are excluded from the concept of white-collar workers.

On top of these, the question should arise once again: Who are workers? Because now we run into some applied problem.” For example, the above mentioned General Dictionary of Social Science defines workers as those who are employed by capitalist without having means of production. : This may hold good fundamentally, but what about public employees who are not employed by capitalist?

Therefore, let us straighten up and confirm the definition of workers according to the study of Masanori Horie (“ Theory of Trade Union Movement,” vol.4. Postwar Change in working class structure,” Otsuki Shoten.) The working class consists of the following three groups.

The first group is formed by all the workers at productive labour in the field of material production, whether it is productive labour in a narrower sense or in a broader sense. “Productive labour in narrower sense” means “labour which produces surplus value or labour which helps the multiplication of the capital value.” Productive labour in a broader sense “includes two types of labour; one carried out by productive workers in original sense (Manual labourers) and the other, by “Intellectual workers (technical experts, draftsman, assistant experimenters, general engineers and further, some of clerical employees) who belong to the field of material production, and do not need to engage directly in the labour object, but stand in opposition to the whole machinery integrated as capital”. In short, workers at material production employed by the capital consist the first group.

The second group is composed by workers engaging in labour which is not included in material production. In other words, “labourers working in the field of non material production, such as commerce and finance business, form the other segment of the working class, for they do not produce surplus value but help the multiplication of the capital value. “ These workers belong to the second group. Furthermore, CarlMarx said: “The labourer produces, not for himself, but for capital. It no longer suffices, therefore that he should simply produce. He must produce surplus-value. That labourer alone is productive, who produces surplus-value for the capitalist, and thus works for the self-expansion of capital. If we may take an example from outside the sphere of production of material objects, a schoolmaster is a productive labourer, when, in addition to belabouring the heads of his scholars, he works like a horse to enrich the school proprietor. “These people therefor, are also included in this second group.

The third group is made up by national civil service personnel, local government employees, teachers of public schools, physicians in national and public hospitals, etc. “Not because they stand in the field of non material production but that they neither produce the surplus value nor help the multiplication of the capital value, they must be defined as unproductive workers.” However, proletarian strata forming a dominant part of such workers, in the same way as productive workers, not only sell their labour force to the monopoly capitalist state (general capitalist in a certain sense) at a price which reflects their value as it is or less, but also are placed in their jobs in such a turn against the political and ideological regime of the capitalist class. “Thus that public employees, teachers and physicians are components of the working class can be considered as a fiction which has produced a special prescription of labour under the capitalist system, and this fiction is something objective and holds true in society.” In this way, public servants who are not employed directly by the capitalist (aside from high-ranking privileged officials, Self-Defense officials and policemen) also fall under the category of workers and are included in the third group.

After all, the conclusion is that” those at clerical, managerial and technological work” among the working class, as mentioned above, are called white-collar workers. There is a case that “those who are dealing in sales” are added to the above-mentioned workers to be called white-collar workers as a whole.

(2) Number and Internal Structure of White-Collar workers in 1990’s

First, let us make clear the basic facts about the number of workers of 1995, the latest statistical year (according to the “Labour Force Survey” by the statistics Bureau, Management and coordination Agency.) Japan’s total population amounts to 125,200,000 and the economically active population totals 66,660,000. Among these workers 64,570,000 make up the employed person, which is categorized into 7,840,000 self employed workers, 3,97,000 family workers and 52,630,000 employees. Employees make up 81.5 per cent.

“Employees” here include managers, Self-defense officials and policemen, , so that these should be excluded from the number of workers. But the official statistics do not draw a line between them and if we depend upon the official statistics data, we have no choice but use the “number of employees” as an approximation of the “number of workers”.

Hidetaka Tomoyori has calculated the “number of workers” in his own way based on the 1990 Population Census of Japan. According to his calculation, by excluding the “capitalist class”, “self-employed:and “uncertain group” from the “population participating in economic activity”, the number of working class can be figured out at 46,060,000, which makes up 72.4 per cent. “Though these two researches were conducted respectively in different years, the data given by Tomoyori’s calculation is very helpful in estimating the actual force of the working class. (yet we use the official statistics just as they are , being well aware, their limits, for an approximate figure will be sufficient in this article).

“Hidetaka Tomoyori, “Increase of the working –Class in East-Asia, “June, 1996 “Keizai”, Shin’nihon Shuppan Co. Ltd.

Now the matter of concern here is the percentage of white-collar workers in those “employees” estimated at 52,630,000. And the internal structure of white-collar workers. There is one of the data, the Genera; Investigation of the Actual Situation Concerning the Diversification of Work Type,” complied by the ;labour Minister’s Secretariat Policy planning and Research Department, issued in April 1996; the investigation was conducted in November, 1994.

In figuring out the proportion and structure of white-collar workers, the questions that upto which profession listed in the data should be regarded as white-collar workers. If we consider 1) those engaged in managerial occupation, 2) those at clerical work and 3) professional and technical experts as White-collar workers, in accordance with the above mentioned definition given by the General Dictionary of Social Science,1) makes up 10.0 percent,2), 38.1 percent and 3), 15.6 percent. The percentage of white-collar workers thus amounts to 63.7 percent. On the other hand, in the categorisation made by the Labour Ministry and others “those dealing in sales” are added to these three occupation types (the Labour Ministry’s “1993 Labour white Paper”); in other words the percentage of those dealing in sales, 5.3 per cent is added to the 63.7 per cent , and consequently the percentage of white-collar workers in “employees” becomes larger, reaching 69 percent.

At any rate, more than 60 per cent of the working class is made up by white-collar workers, which means they have enormous weight. Through this we can see that the conditions of white-collar workers, constitute a very important factor in studying the conditions of the working class and that the analysis of condition of white-collar workers in indispensable for estimating the capacity and the possibility of working class movement.

Next let us make clear the big difference in the proportion of men and women in white-collar workers. Above all, there is a big gap in the number of men and women in managerial work. In case of men workers, 15.1 per cent are assigned to managerial posts, while in case of women only 0.8 percent, which is very few. In this regard, attention should be drawn in connection with restructuring by the fact that among these men workers “employees on loan” forms the biggest part in those in managerial work, accounting for 31.3 per cent. To the contrary, among those engaging in “clerical work”, the percentage of women workers amounts to 50.8 per cent, much bigger than that of men workers, which is 31.2 per cent. These women in clerical work have also been made the target of restructuring (nationalization by cutting the workforce,) which takes up the form of clerical work, such the case of Mitsubishi Corporation. Another characteristic is that a greater part of non-regular employees goes for women (33.3 per cent of the whole occupation). This percentage exceeds by far that of men which is 9.2 per cent. This fact indicates that these are still many cases in which women workers are treated descriminately as “supplementary workers”.

(3) Rapid Change in the conditions of white-collar Workers

It is not recently that white-collar worker, particularly middle aged and senior workers, were made the target of the “rationalization” offensive. Ever since the middle of 1960s, they have been subjected to “streamlining.” “Ability Based Management- Theory and Practice” published by the Japan Federation of Employers; Associations in 1969 gave emphasis on it, saying: “ Companies in our country have strived for increasing productivity centered mainly on the rationalization of plants. However, even the enterprises which have succeeded in bringing their labour equipment ratio close to that of U.S. level still fall far behind US companies in productivity. This is partly due to the problem concerning personal labour management, “and” “the local issue of the problem is the low labour productivity of indirect production section, which is clear from the comparison of the ratio of direct and indirect production section between Japan and the United States. “ In this way , already in the middle of the high economic growth period, the thorough implementation and strengthening of “rationalization: targeted at white-collar white-collar workers were made the task of great importance for the financial circles and the capital, and this offensive has actually been intensified since then.

Such a trend became obvious in all kinds of industry under the “belt-tightening management” line which was carried forward since the middle of 1970’s after the first oil shock. It was accelerated still further during the 1980’s in accordance with the “temporary, administrative reform line”and “structural adjustment.” As a part of it, reduction and abolition of such systems as lifetime employment and seniority based wage were promoted, and white-collar workers in particular suffered a serious blow, now that they could be transferred to other companies and the wage system became based on ability.

The present (1990’s) situation which can be described as a time of ëordeals for white-collar workers: has such a trend as part of its background. On the top of this, as it referred to later in Part II of this article, new factors and background have joined in the “rationalization in the name of industrial restructuring “offensive which is being pushed ahead against white-collar and all other segments, of workers today.

Let us now take a look at some typical examples of the recent attacks on employment launched against workers, targeted at white-collar workers.

1) Prince Hotel will introduce from fiscal 1997 a system of employing new women graduates on a temporary contract. The contract term will be one year with the renewal of the contract admitted up to three years.

2) The three trust banks, Mitsubishi, Sumitomo and Toyo, will suspend the employment for “general office work: from fiscal 1997. To cover the work force shortage which would be brought about by this, they will ensure the necessary personnel through manpower supply companies and other means. Some companies such as Mitsubishi Corporation have already adopted this line.

3) Nikko Hotel has decided to convert since fiscal 1997, 70% of those working at the front desk, which has been a converted job among the hotel employees, into employees on a temporary contract.

4) Daiwa bank will introduce an early retirement system “targeted at those over 29 years old. “This is part of the planned “streamlining by personnel cut,” though which 9.158 bank clerks employed at the end of March, 1996 will be reduced to 7,000.

5) Personnel reduction in the name of industrial restructuring of public employees has also expanded. In line with “research” by the Local Autonomy Management Society, the Ministry of Home Affairs has consigned the business run directly by the local governments to private sectors one after another, and it intends to escalate: privatisation:by spreading propaganda that it is possible to reduce the expenses for garbage collection, school lunch and the care of the park by half, and to cut down more than 90 percent of the operating costs of kintergatens, downsizing of public employees has already been carried forward in accordance with such a plan. Thorough implementation and expansion of such a policy are schemed in relation with “deregulation” and decentralization.

All these are the examples of the attacks aimed at reduction and abolition of the lifetime employment by giving more flexibility and mobility (diversification) to employment. Offensive on wage is also related, linked with this aim in most cases.

Now let us turn our eyes to some typical examples of the attacks on wage.

1) Mitsui Mining & Smelting Co. Ltd. Decided to abolish the basic wage increase, and Benesse ëCorporation announced a policy of abolishing both the basic wage increase and mandatory pay raise, and they have actually carried out their policy since April, 1996 aimed at breaking up the seniority-oriented wage.

2) Hitachi, Ltd. And Kanebo, Ltd. Have introduced by sections as wage disparity according to achievements. In the case of Kanebo Ltd. The wage of workers in the cosmetics section, which makes more profit is higher than that of the fiber section. Along with this, wage assessment inside the sections is intensified.

3) Mitsubishi Rayon Co. has introduced since 1996 the annual salary system for some 300 employees at managerial level such as division directors. As the result, there will be a gap in annual income of 2 million yen as maximum.

4) Sumitomo Trust Bank will introduce in fiscal 1997 the “wage system based on ability and achievements:, targeted at the whole bank clerks including those engaging in the general office work. By this, the present rather seniority oriented wage system will be abolished under the pretext of introducing a “new system of evaluating the talent: by such measurers as self-grading of employees.

5) Marubeni Corporation also intends to expand wage differential by introducing a five-ranked evaluation, which will result in gap of more than two hundred percent in annual income for the workers at the age of 55. President Iwao Toriumi has publicly declared that this differential should be enlarged upto 300 percent in the near future.

There are the examples of attacks made recently on wage. In all cases the biggest aim is to cut down the wage costs on a large scale, by promoting the reduction and abolition of the seniority based wage system to replace it with “ability based one, which will facilitate a discriminatory assessment on individual workers. Such offensives have also been intensified against public employees. For example, the Ministry of Posts and telecommunications plans to implement a “new promotion system” from January, 1997. It is propagated that by bringing into promotion differential according to “ability” to stick with the job, a sense of rivalry will be elevated. The present wage system which is based on seniority is to be changed fore the first time in these forty years, and the competition with private sectors such as door to door service is given as the reason for the introduction of a “new promotion system”

II Possibility of White-Collar Workers and the Labour movement At a “New Turning Point”

From the world historical points of view, it was during the period from 19^th to 20^th centuries when white-collar workers were emerged as a stratum. “Along with the development of capitalism and its transition to the stage of monopoly capital (expansion of domination by big enterprises,) mental or intellectual workers who were engaged in managerial, specialized and clerical work, (namely white-collar workers) increased, forming a contrast with the decline of the “old middle class” including independent farmers and those dealing in commerce and industry.

In this way white-collar workers came to be called “new middle class” together with non workers such as practicing physicians and lawyers, the great difference in the income level and the way of living between them and manual workers (namely blue-collar workers) led them to have a “privileged class consciousness”, and the conservatism became noticeable among them that they would play a role of “buffer zone” for the class struggle. In other words, they became more and more inclined to “support the monopoly capital’s rule by frequently toning down the working class struggle, because among the working class they are the close stones to the capitalists and always waver in different phases in the class struggle.”

“Takanori Ohashi, “The Working Class in Japan” Iwanami Shinsho.

After that, there was an increase of white-collar workers in number during the period between the two world wars, followed by another remarkable increase during the high economic growth period which brought about a rapid technological revolution taking place with the end of World War II. It was during this period (high economic growth period) that the term “white collar” became common in Japan. Since then, those workers had been called “monthly paid workers,” Salaried employees” or office workers.” It can be said that with a new situation arising during the high economic growth period in which there was a sudden increase of managerial, professional and clerical work in number, the term of white collar went spreading rapidly in Japanese society.

The growth of white-collar workers in number, however, gradually took “privileged class-consciousness: away from them, making them more aware of their own nature as workers. Needless to say, this was a general trend of the change and there were also various kinds of change inside white-collar. In other words, the division of white-collar workers into different strata was progressing. A small group of the upper level went still more upward, reproducing their privileged position and consciousness on an expanded scale, while many other white-collar workers went converted into blue-collar or gray-collar workers. The conversion of white-collar workers into blue collar workers (to be more precisely, mutual infiltration by both sides,) was under way in labour, income, life and consciousness on the whole. It should be noted, however, that there were not a few attempt to conceal the decline of position and resolution of white-collar workers into different strata, while a nation-side ideological offensive was carried out mobilizing the mass media aimed at implanting the “middle class consciousness,” based as a footing on the on-going high, rapid economic growth with upward tendency (quick-paced accumulation of the capital.)

Such situation had to be changed again, however, by the bankruptcy of high growth of Japanese economy after the first oil shock in 1973, which led to the forcible implementation of “belt-tightening management” under the low economic growth. Particularly in 1990’s when this belt-tightening management” developed in a new way with “deregulation” and “restructuring,” the change has become apparent. Many of those among white-collar workers who are supposed to have gone up to the upper strata”(those in administrative posts such as directors and managers) during the high economic growth period, are now exposed to a time of “ordeals for white-collar workers, “ being excluded from the workplace by working on loan or transferring to other companies, and early retirement, or with their wage reduced. As the above –mentioned examples show, taking advantage of management information system, enterprises are pushing ahead reorganization of managerial mechanism, and “squeezing” or downsizing of administrative posts has become visible. There have been many cases in which not only the number of managers but also the administrative posts were reduced. For example, in Nippon Sheet Class co. Ltd., the administrative posts which had been graded at five levels; managers and group leaders, through which a great part (or 60 per cent) of those who used to be in the administrative posts were at once made “run-of-the-mill employees”.

As we have taken a general look, white-collar workers appeared in history during the period between 19^th and 20^th centuries with “privileged class unconsciousness”, regarded as part of the “new middle class”.

Later (especially during the high economic growth period after the World War II,) as they grew in number and percentage in the whole workers, they went differentiating into upper, middle and lower strata. On entering the fourth quarter of the 20^th century, “disintegration phenomenon” expanded affecting even the upper stratum of white-collar workers, and caused a collapse. And now, with the 21stcentury drawing near, the very position of white collar workers are subjected to an “earthshaking change”. A scholar who is on the side of the establishment and has given up on the conservative role of white-collar workers, calls for the necessity of training “those who have the ability to withstand the international competition, making full use of information technology” as gold-collared workers.”

Yoko Sano, “Now is the time of Bring up the Gold Collar workers,” Nihon Keizai Shimbun, October,16, 1995

(2) Change’ in the Consciousness White-Collar Workers have been conducted one after another. Each of them indicated that there have been changes in their consciousness. Let us take a look at some of these polls.

(1) Nihon Keizai Shimbun carried out an article reporting the “Research on Overseas Labour situation” issued by the Labour Ministry in August, 1996. The article says: Salaried workers in other Asian countries are far more work-oriented than Japanese workers? The results of the research conducted by the Ministry of Labour among workers in Thailand, Indonesia, South Korea and other Asian countries indicate that they have stronger sense of belongings to the company and more work-oriented sense of values than Japanese workers. The Labour Ministry analyzes saying, ëit is interesting that the company-first trend, which has been considered as peculiar to Japanese society, is now seen in other Asian countries”, (Nihon Keizai Shimbun, August 15, 1996.)

(2) A questionnaire was carried out jointly by Nihon Keizai Shimbun and Mikkei Research about the “outlook on labour” and outlook on life. “The results showed that “a tendency towards surviving by acquiring special ability and qualifications rather than by getting a high-level post, and besides one out of four respondents over 39 of age answered that they were losing their sense of belonging to the company. On the other hand, those who want to spend their spare time on voluntary work, acquisition of qualifications or self-enlightenment ranked higher, which threw into relief the image of workers striving not only to achieve the goal in work but also for “restructuring of their life dedicated to the company” (Nihon Keizai Shimbunm November 20, 1995).

(3) The Japanese Electrical Electronic and Information Union (Denki Rengo) carried out a world wide opinion poll on work, the results of which were reported in Asahi Shimbun as follows: Among the fourteen countries of Europe and East Asia, Japan comes last in the percentage of workers hoping to ‘do their best for the development of the company’ –this is the result revealed by the recent opinion poll made by Denki Rengo. As regards the feeling towards companies, the company-first type makes up 19 per cent, five points below the level of ten year ago, and this was the lowest among the countries in which the poll was conducted,” (Asahi Shimbun, August 6, 1996).

(4) Nihon Keizai Shimbun conducted a “questionnaire among 100 section chiefs: (valid respondents, 97: average age 44), The following is the report on the results: “one out of three of the middle strata such as section chiefs are worried of being subjected to the personnel cut. The intensifying restructuring pushed ahead by the company has reflected on the mentality of the middle management, who have become more and more anxious about their salary, retirement allowance and employment. The effect of the rapidly changing environment on their mentality is shown in the result that 35 percent of the respondents said that they were feeling stress accumulated due to restructuring and wage control, or that they always tend to feel nervous with the elevated competitive spirit.” (Nihon Keizai Shimbun, May,19, 1995)

All these four polls shows clearly that the white-collar and other workers, consciousness is now characterized by the tendency to rapidly “drifting away from the company”, which has now extended to all generations and strata of workers. We cannot help with the sense of discontent of other segments of the people about problems of “jusen”(housing loan companies), consumption tax rate increase and cutting down on the social welfare, a “situation in which something may take place” has become widespread in our country.

3) Condition for the Development of the Movement

Having the change of workers’ consciousness explained above in mind, I want to point out the increasing possibilities for the development of the movement of labours including white-collar workers, from the following three points of view.

First the Japanese-style traditional practice of employment” such as life-time employment and seniority-oriented wage system, has been serving to greater extent as apparatus plying a central part in the capitalists’ attempts to win the labour, particularly white-collar workers, over to their side, but it is now being undermined by the rapid development of restructuring. And what is more, it can safely be said that this factor will continue to have effect, as it is given that “almost all the enterprises will continue with and put into practice alternation of the system, regardless of “economic trends,” even after business has really recovered” ( The Economic Planning Agency’s 1996 report on the Questionnaire on Enterprise Activity,) It should also be noted that monopoly capital and the financial circles are now faced serious contradictions by rapidly undermining their base through the forcible implementation of the “new Japanese _style management”(conversion of regular workers into non-regular workers,) as we have already seen above.

Secondly, the offensive against workers and the labour movement has been carried out centered on “anti-communist thought discrimination>” Such offensives, however, have begun to crumble (though there has been no fundamental change in them) due to the struggle waged by workers and other segments of the people, as shown but an epoch –making achievement that on the case of human right violation against workers by Kansai Electric Power Co., the’ Supreme Court gave a decision in favor of the defendants who were workers ( in September, 1995.) There has been a change after this that the capitalists gave up the discrimination they had carried forward.

Thirdly, in sharp contrast with the Japanese Trade Unions Confederation (Rengo), symbol of “bad past” of Japan’s labour movement driven more and more into a deadlock, the National Confederation of Trade Union (Zenroren), symbol of “future of advance”, is full of vitality having been successful in expanding it organization and realizing workers’ demands.

Conditions for achieving the unity of workers have expanding also by the rapid mutual approach and infiltration between white-collar and blue-collar workers in their labour style, working conditions, life style and consciousness. For example, it is said that Nippon Steel Corporation has started on a concrete examination for abolishing the division of workers into white-collar engaging in planning and management, and blue-collar in the sites of iron works”, because the present division does not suit the actual situation any more, due to the change in the substance of duties of employees working in the sites, brought about by such factors as common use of computers.”

The situation today is complicated both at home and abroad, and the financial circles and the government are becoming more and more crafty in their measures and offensives, so that there is no room for optimism, it is certain at least, however, that there are far greater possibilities now for the advancement of the labour movement. As it has been expected, the stage has begun to move toward a new turning point.

( Courtesy: Railway worker)


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