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303 15 FLEXIBLE EMPLOYMENT AND THE INTRODUCTION OF WORK-LIFE BALANCE PROGRAMS IN JAPAN Machiko Osawa Japan is at a crossroads. The post–World War II economic model, known as “Japan, Inc.,” has been largely discredited, and is no longer seen as viable in the twenty-first century without substantial modification. Even as the underpinnings of Japan, Inc. are gradually abandoned, there is no consensus on cobbling together a new paradigm . For example, Japan’s employment system is in transition. In the mid-1980s, the proportion of nonregular employment began to increase,accelerating during the 1990s (Houseman and Osawa 2003), but the movement toward such arrangements remains controversial. Firms have increasingly resorted to more flexible working arrangements in order to lower labor costs, subsidize existing employment arrangements , and facilitate incremental employment adjustment. The stable employment associated with Japan, Inc. is giving way to employment practices more commonly associated with the United States, generating unease about this transition. Some have argued that this new flexible employment model is creating a society of “haves” and “have-nots,” while Japan’s declining fertility rate is partially blamed on rising economic uncertainties as young people weigh their options (Tachibanaki 2006). Now, as they contemplate a looming labor shortage generated by this steep and ongoing fertility decline, policymakers recognize the importance of more fully integrating additional women into the labor force. However, this is problematic, given that women have multiple household responsibilities as wives, mothers, and caregivers for elderly parents. In order for women to combine family and work responsibilities, it is necessary to introduce more flexible work arrangements on more favorable terms. Although flexibility has primarily been introduced to cut costs, it is time to rethink this approach, and share the fruits of flexibility by introducing family-friendly work 304 MACHIKO OSAWA arrangements that will enable women to balance their multiple roles. Society will gain from more productively tapping their talents; women will gain by having more responsible and better paying careers; and the tax base will benefit from the revenue they will provide, toward medical care and pension programs to meet the needs of Japan’s rapidly aging society. In addition, to the extent that work-life balance arrangements can become the norm, Japan can also address its declining fertility. Currently , Japanese women must choose between raising families or pursuing careers, as very few can juggle both in the absence of necessary support from employers and government policies. The concept of work-life balance in Japan faces an uphill battle, given the value placed on self-sacrifice for the company good. Japanese workers work excessive hours, including unpaid but mandatory overtime that does not show up in crossnational statistics (Ogura 2007). The misery index can be measured in terms of rising levels of depression, suicide, karoshi (death from overwork), dysfunctional families, and divorce (Cabinet Office 2007a). As Japanese firms restructured their workforces during the 1990s and limited new hires (Ministry of Health, Labour and Welfare 2002), workloads were shouldered by fewer full-time workers, who face greater anxiety about prospects for job stability. With mortgages to pay, children to educate, and elderly parents to care for, workers find that less stable employment translates into greater household stress. Work-life balance programs offer a means to alleviate some of this stress and raise productivity. General Situation During much of the post–World War II period, the job-centric approach to work went unquestioned and unchallenged.At weddings, senior executives in the groom’s company often served as the go-between. They made speeches extolling the value of the groom’s contributions to the firm, asking the bride to understand the husband’s long hours and absences as a necessary and even desirable reflection of his expected devotion to work. Weekends could involve golfing and other outings, while entertaining customers during the week was an extension of work. It was also common for firms to divide families by requiring husbands to transfer to distant branch offices while their families remained behind, the so-called tanshin funin system. Clearly, there was little balance in the employment system associated with Japan, Inc. The costs of this imbalance, in terms of worker well-being, family instability, and declining fertility, are now better understood. Contemporary Japan is experiencing the tensions between long-established attitudes and practices and the widespread recognition that Japan needs less perspiration and more inspiration. It is a sign of the times that the governor of Iwate Prefecture launched a campaign called “Gambaranai Iwate” (Don’t...

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