Posts Tagged ‘contract workers’

The sky becomes less of a limit for cabin attendants (unless you’re a man)

Friday, August 23rd, 2013

Screen shot of ANA's new Airline School, which opens in October

Screen shot of ANA’s new Airline School, which opens in October

All Nippon Airways just announced a new hiring policy for cabin attendants (CA). Starting next year, new CAs will be full-time regular employees of the company. Since 1995, CAs at the company were hired as contract workers who could opt to become regular employees after three years. The reason for the change is tougher competition from low-cost carriers (LCCs). ANA says in order to ensure the best service for their patrons they want to offer flight attendants better employment security. Currently, ANA employs about 6,000 CAs, 1,600 of which are contract workers. Next year, if these 1,600 want to become regular employees they can. The company plans to hire 450 new CAs in 2014.

The contract system was adopted by both ANA and Japan Airlines (JAL) in the same year, when the bubble economy had ended and Japan was entering its long period of sluggish growth. The object was to keep personnel costs in check. JAL says it has no intention of abandoning its contract work system “for the time being.” Twenty percent of its 3,800 Japanese CAs are contract workers. LCCs Peach and Jetstar only hire CAs as contract workers, while Skymark offers its contract CAs regular employment after one year. Though ANA’s policy change means its personnel costs will rise, the company thinks it can offset these expenses with reduced training costs.

Presently, when an ANA CA’s contract expires, she is offered full-time employment, but she can also opt for another 3-year contract. Over the years, 80 percent of ANA’s CAs chose regular employment. Contract workers are paid by the hour, and during the initial training period the wage is less than ¥1,000. That goes up to about ¥1,200 an hour until the end of the contract. JAL pays even less, about ¥1,100. Typically, a cabin attendant earns about ¥2 million a year while she is a contract worker, which isn’t much but CAs, even contractors, have some perks, like access to inexpensive company housing. However, the difference between contract workers and regular workers is striking. In 2001, the average yearly pay for CAs in Japan was ¥6.79 million, reflecting the fact that their ranks were still dominated by full-time regular employees. By 2011 the average salary had dropped to ¥3.85 million, reflecting the dominance of contract workers and newer regular employees rather than veterans who make more due to seniority. Last year it was about ¥4.8 million.

Another factor that influences pay is employment longevity. On average, Japanese CAs remain in the business for 7.4 years, and their average age is 31.2. In the past, it was the most coveted job for women in Japan, though not necessarily for career reasons. It was considered a glamorous occupation during a time when Japan was still isolated from the world, and thus offered women the only chance for overseas travel. (It was also the best way to put one’s English language skills to use. At one time, all English conversation schools has special classes for aspiring flight attendants.) Also, it was considered the best way to find a good husband, since sutchi (stewardesses) were also coveted as wives by eligible bachelors.

It was something of a joke in the 60s and 70s that professional baseball players and sumo wrestlers married either TV announcers or JAL cabin attendants. That may explain why the average age remains low: few CAs continued to work after they married, and if they did they usually tried to get transferred to the position of “ground hostess,” which is even more glamorous since there are so few of them. Also, while both regular employees and contract workers can take maternity leave, only regular employees can ask for shorter hours after they return to work. Tokyo Shimbun says that 10 percent of contract workers quit before their option to become regular employees comes up and one of the main reasons is that they become pregnant.

There’s little doubt that management has a certain image of what CAs should be. Only 1 percent of CAs in Japanese airlines are men. Though it’s against the law to discriminate in terms of gender, it seems obvious that airlines hire women predominately, and Japanese men who want to become CAs know this. According to an article in Newsweek, European and Middle Eastern airlines actively recruit Japanese male cabin attendants. Of the Japanese CAs who work for European and Middle Eastern airlines, 10 percent are men. In Asia, the portion is the same as it is in Japan.

Experience counts for something in JR embezzling incident

Tuesday, April 3rd, 2012

JR ticket office

On March 16, JR West pressed charges against a 50-year-old employee who allegedly embezzled ¥86 million. The unnamed worker, who was hired by the railway company in 1980, when it was still part of Japan National Railways (JNR), worked in the ticket office of Akashi Station on the JR Sanyo Line. He has been accused of printing out fake teiki (commuter passes) for which he gave out equally fake refunds that ended up in his pocket. All in all, he carried out this fraud 659 times and supposedly spent the money on gambling and other “entertainment” activities. But what’s more interesting is that he didn’t do it alone. He apparently enlisted the assistance of seven other staff members who confessed that they felt pressured into going along with the scheme because of the accused’s seniority.

The suspect first started the racket when he was working at Asagiri Station on the same line. He would issue fake passes and then dispense refunds for the passes after the imaginary customers who purchased them reported they were defective. Since these passes are issued by vending machines, the salesperson keeps the supposedly defective pass and refunds the money, which the customer uses to buy a new one. Under such circumstances the salesperson has to write a report for the refund and then later someone has to verify the refund report with the returned pass, but somehow the employee figured out that no one ever actually did this. In fact, he probably could have continued the scam indefinitely if another employee in JR Nishi Nihon who worked on the Takarazuka Line hadn’t been caught doing the same thing, thus causing management to look a little closer at records to see if it wasn’t more widespread. Apparently it was. Even before they caught the Akashi embezzler, investigators discovered an employee at Osaka Station who had pilfered ¥32 million.

But none of the other embezzlers used underlings to help them bring in more cash. A JR executive told reporters that the seven accomplices were contract workers in their 20s, meaning their employment was not guaranteed. When questioned about why they agreed to participate in the scam, they said the accused, who was their supervisor, made it impossible to refuse. They knew it was wrong, but believed that if they didn’t obey his orders they’d lose their jobs. After five years they are given the opportunity to become regular employees, but if they don’t they aren’t rehired, since contract workers are limited to four rehirings. One of the seven stopped working for JR before the incident came to light.

After JNR went private in 1987 and the company was split into several regional railways, many older workers were laid off. Some sued and are still fighting to get their jobs back, but in any case JR West didn’t hire many new graduates in the subsequent decade, which means there is a wide age gap in the company’s ranks. At Akashi Station, for instance, eight of the 41 employees are in their late 40s and 50s, while the rest are in their 20s. Most of these younger employees are contract workers who have to renew their employment every year. The hourly wage is about ¥1,000 (following a three-month probation period during which they earn ¥890 an hour). JR didn’t reveal what the accused employee’s salary was, but according to Nenshu Lab, a wage research group, the average salary for a full-time JR West employee, regular or not, is ¥6.73 million. In 2005, however, the average salary was ¥7.24 million, which would seem to indicate that more contract workers have been hired as older workers retire.

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