Posts Tagged ‘Rengo’

Politicians’ pay: Even more than you think

Tuesday, December 13th, 2011

Hirohisa Fujii, head of the Democratic Party of Japan's tax panel, listens to recent panel deliberations about a proposed tax hike to pay for reconstruction. (Kyodo photo)

In October we talked about how national assembly members’ pay was going back to normal after six months of pay cuts in the wake of the March disaster. At the same time, the administration of Prime Minister Yoshihiko Noda failed in its attempt to cut civil servant pay by 7.8 percent because Rengo, the union federation that represents government workers, demanded reinstatement of collective bargaining rights as a concession, which the opposition Liberal Democratic Party wouldn’t go for, so the measure was defeated in the Diet. Because Noda’s ruling Democratic Party of Japan was pushing for the 7.8 percent cut it postponed the voluntary 0.23 percent cut proposed by the National Personnel Authority, so in the end bureaucrats are getting paid the same amount they’ve always been paid. Actually, they’re getting even more since last week they received bonuses that on average are 4.1 percent higher than they were last year.

The government pay situation is a huge PR problem for the administration, since it’s about to ask the public to accept a tax increase to pay for reconstruction. To put things in the proper perspective, the basic monthly salary for a Diet member is ¥1,294,000 and his/her yearly bonus amounts to ¥5,530,000. According to the national tax agency, the average salaryman working for a private company in Japan earned ¥295,000 a month in 2010, and received yearly bonuses of ¥580,000. So on an annual basis, a national politician receives more than ¥21 million and a salaryman a little more than ¥4 million.

But there’s more. Each lawmaker is allowed ¥1 million a month for tsushin kotsu taizai-hi (communications, transportation and lodging expenses). This allowance is supposed to be spent on anything having to do with sending documents to or communicating with constituents on matters of a “public nature,” which basically describes anything a politician does. However, lawmakers are not required to submit receipts showing how they spent this money, so that’s an extra ¥12 million a year, tax-free.

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Hidden pachinko industry workers make some noise

Monday, July 25th, 2011

Getting paid: A patron exchanges prizes for cash outside a pachinko parlor

Pachinko isn’t the huge money maker it used to be. At around the turn of the century, it was a ¥30 trillion a year business, putting it on the same revenue level as medical care, but according to the Nihon Yugi Kanren Jigyo Kyokai, the pachinko industry association, pachinko parlors now pull in about ¥10 trillion less, give or take a few trillion. Ten years ago there were about 17,000 parlors nationwide. Now there’s only about 12,500.

Unlike horses and certain other racing sports, pachinko is not approved by the government for gambling purposes, but the industry has traditionally gotten around this obstacle by offering prizes to winners. These prizes can then be exchanged for cash at secretive little booths (keihin kokan-jo) located outside the premises, since having the booths inside the parlors themselves would be against the law. The businesses that run the booths sells the prizes to a wholesaler who then redistributes them back to pachinko parlors.

Organized crime elements used to be centrally involved in this buy-back cycle, but in the early ’90s the police managed to lock them out of it and set up their own organizations to administer the business. It’s been reported in the past that a portion of the money these schemes make go to the National Police Agency for things like pension funds. A prepaid card system for pachinko parlors was introduced in the ’90s that made it easier for the police and tax authorities to monitor revenues.

Continue reading about keihin kokan-jo →

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