Archive for the ‘News’ Category

Yen for Living is moving!

Sunday, April 12th, 2015

See you on the other side (ISTOCK)

See you on the other side (ISTOCK)

Yen for Living has lived in this virtual space since August 2009. From today, new Yen for Living reports will appear in The Japan Times on Sunday on the second and fourth Sundays of the month. It will also be archived on the JT website.

You can read our first story in JT on Sunday here.

Thanks for your support and wish us luck in our ‘new’ home.

Who benefits from the new overtime pay system?

Monday, February 16th, 2015

On Feb. 13, a Labor Policy Council sub-committee submitted to the labor ministry a report with suggestions for a bill to revise the labor standards law. The revision, which the ministry plans to submit to the next regular Diet session, applies to the work of skilled white collar professionals and will allow them to “work in a manner that demonstrates their achievements” more effectively, which is another way of saying that employers will no longer be required to pay these workers overtime for extra hours on the job, which in turn means that employers cannot be accused of pressuring them to work overtime for no pay, a system popularly known as saabisu zangyo, or “free overtime.”

Ostensibly, the revision will affect a small portion of the labor force, since it will only apply to workers who make at least ¥10.75 million a year, mainly foreign currency traders, financial analysts, consultants, etc.

Burning the candle at both ends.

Burning the candle at both ends.

According to the advisory panel’s recommendations, if a company wants to utilize this new overtime system, it must reach an agreement with the targeted workers and somehow introduce rules that will guarantee the employees avoid overwork as much as possible by, for instance, making sure they don’t work weekends.

The panel also recommends another revision to so-called sairyo rodosei, the “discretionary labor system.” Under to this system the worker and his employer decide together how many hours the former will work and how much pay he will receive based on those hours. If the two parties believe that in order to accomplish his tasks he may occasionally need to work longer hours, then those hours and appropriate compensation should be incorporated beforehand into his wages. But if the worker works even more hours than the overtime covered by the extra wage, he will not be paid extra in accordance with the new system, though there may be special conditions for after-midnight and weekend work.

This system targets sales agents, researchers, legal workers — people who tend to require flexible hours since the size of their work load varies in accordance with the nature of a specific project. The whole point, according to the labor ministry, is to peg pay to achievement.

An report in Tokyo Shimbun points out that there is more to the proposed bill than the two revised overtime systems. The ostensible purpose of the revisions is to prevent “overwork,” so the sub-committee also recommends a law guaranteeing a minimum number of paid vacation days a year, even for management employees; and that overtime rates be increased for employees of small and medium-sized companies to those already being paid by large companies.

With regards to workers on flextime systems, overtime should be paid for any hours that exceed 50 in a week, and employees with small children should be better able to set their hours in order to address parenting contingencies.

CONTINUE READING about overtime policies →

Show me the money: Who paid for what in the Lower House election

Monday, January 5th, 2015

Posters for LDP candidate still standing (and lying) in a Chiba field a month after the election

Posters for LDP candidate still standing (and lying) in a Chiba field a month after the election

When Prime Minister Shinzo Abe dissolved the Lower House in November and called a general election, some people complained about the cost. Why should taxpayers foot the bill for an election that was more or less being carried out on a whim?

The complaint got lost in the post-election buzz, when other complaints became louder, but at least one person still wonders about all that money. In a new column in the Asahi Shimbun called “Re: Okotae Shimasu” (Re: Answering Questions), a reader mentions that she heard that the election cost ¥63 billion. What, she asks, was that money spent on?

It’s a good question, but one that’s difficult to answer since the government is still adding up all the receipts and won’t actually reveal the results until next fall, by which time the election will be a distant memory. However, the Asahi was able to give the reader some idea based on the last general election held in 2012, which cost ¥58.8 billion.

In addition, when a “snap election” is held, meaning a poll that doesn’t follow the normal election cycle, the money comes from an “emergency fund” (yobihi) that is kept in reserve for when something unexpected happens.

CONTINUE READING about the cost of elections →

Consumer stimulus is not the same as welfare, though the purpose is the same

Monday, December 29th, 2014

Screen shot from Toyonaka, Osaka Prefecture, city office home page informing residents that the deadline for the one-time welfare handout is Jan. 5.

Screen grab from Toyonaka, Osaka Prefecture, city office home page informing residents that the deadline for the one-time welfare handout is Jan. 5.

Last weekend the cabinet of Prime Minister Shinzo Abe reemerged from its victory lap to approve an economic stimulus package worth ¥3.5 trillion whose purpose is to help rural areas cope with inflation brought on by last April’s consumption tax hike, not to mention the more recent drop in the yen’s value, which has made imported goods more expensive. Some of the money will go to local infrastructure projects, mainly in the area of disaster prevention, and a little less will go directly to consumers and companies.

This handout, however, shouldn’t be confused with the one that the government implemented last summer for poor people, though there will be overlap. In fact, some local governments, which administer the one-time welfare handouts (rinji kyufukin), are still looking for eligible people since many residents who aren’t on their welfare roles nevertheless are qualified to receive the money. So far, about 24 million have received the handout.

The only real difference between the welfare handout and the stimulus handout is the ostensible purpose: the former was designed to help low income people adjust to the CT hike, while the latter is a means of getting more money into the distribution system, but in the end the government wants the same thing: higher consumption, which is why the stimulus handout will likely be in the form of a coupon that can only be spent on goods and services. That isn’t necessary with low income people, who by necessity spend everything they get on goods and services.

CONTINUE READING about consumer stimulus →

Are Japan’s public school teachers paid too much?

Monday, November 17th, 2014

Japanese teachers make more money than the world average, but they also work many more hours. (Photo by ajari CC by 2.0

Japanese teachers make more money than the world average, but they also work many more hours. (Photo by ajari CC by 2.0)

Last month the Ministry of Finance presented a policy recommendation based on studies made by an advisory group. Such recommendations are fairly common, but this one caught more than the usual amount of attention because of where it was directed.

The ministry thinks that the maximum class size for first year elementary school students should be increased from 35 to 40. In purely economic terms, such a change would result in a reduction of as many as 4,000 teachers, which would translate as ¥8.6 billion in savings for the central government alone. However, the ministry’s explanation for why the change should be implemented was not made in fiscal terms. It was made in educational terms.

Until the Democratic Party of Japan became the ruling party, maximum class size was 40, and the DPJ changed it to 35 in order to address the bullying problem. But the finance ministry says that bullying incidents have increased slightly since class sizes were reduced, so obviously it has had no effect.

CONTINUE READING about education budgets

The case for a higher consumption tax

Tuesday, November 4th, 2014

Big needs: Should daily necessities by exempt from the consumption tax?

Big needs: Should daily necessities by exempt from the consumption tax?

Right now the government is fretting over whether or not to raise the consumption tax to its planned level of 10 percent in October of next year. For a while it seemed like a sure thing, but the drop in demand that accompanied the most recent hike to 8 percent in April, coupled with less inflation than the administration and the Bank of Japan had hoped for, has put the plan into doubt. The fear is that another boost in the tax will send the economy into a recessionary tailspin.

Akira Sugawara, a high school teacher who has published an economics primer for businessmen, recently wrote a simple, easy-to-understand polemic in favor of raising the tax for the online version of the business magazine Toyo Keizai. In line with his mission to explain economic principles to people who don’t have a strong grasp of basics, Sugawara starts out by explaining what the consumption tax is supposed to do, rather than what it is actually doing.

Originally, the purpose of the tax was to bolster social security in the face of a rapidly aging society, and though so far revenues from the tax have been used to pay off Japan’s massive debt, Sugawara still thinks social security should be prioritized when discussing the consumption tax.

CONTINUE READING about higher consumption tax →

Political gift culture refuses to die

Tuesday, October 21st, 2014

Former Justice Minister Midori Matsushima faces the error of her campaigning ways in the Lower House on Oct. 15. | KYODO

Former Justice Minister Midori Matsushima faces the error of her campaigning ways in the Lower House on Oct. 15. | KYODO

With almost breathless speed, two of Prime Minister Shinzo Abe’s most recent cabinet appointments, trade minister Yuko Obuchi and justice minister Midori Matsushima, resigned after it was revealed they violated political funding laws. Matsushima’s downfall, which revolves around her free distribution of uchiwa (round fans) to voters, may have as much to do with political expediency as with breaking rules, but Obuchi’s use of funds earmarked for public use to purchase gifts and supplement recreational outings for supporters was clearly illegal.

Which isn’t to say it’s not common. As one anonymous veteran of the ruling Liberal Democratic Party — to which Obuchi belongs — told Tokyo Shimbun, the Gunma lawmaker’s problematic actions used to be a fairly normal practice in the Diet. Obuchi is accused of using her political funds, which come from taxpayers in the form of seito kofukin (political party subsidies), revenues from tickets sold for fund-raising get-togethers, and donations from individuals and groups, to supplement “theater tours” for her supporters. Obuchi’s supporters each paid ¥10,000-¥12,000 to go to Meiji-za in Tokyo to enjoy a day of stage performances. However, in her required political funds report there was an obvious discrepancy. Since 2007, the amount received from supporters for these excursions totaled ¥11.9 million, and it is deemed they cost more than ¥60 million to carry out, with the difference being ¥53.3 million that came from Obuchi’s funds.

The veteran says that such jaunts for supporters were normally arranged directly by the politician’s staff, but ever since the law became more thoroughly enforced, lawmakers have entrusted the job to travel agencies so as to divert the trail of money.

CONTINUE READING about political gifts →


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