LB5303 – Cross Cultural Management

Assignment 1
Bicycles to Japan

Name of Professor: Mr.Mogan

Name of Student: Arjun Giri Muniswamy
Student Id Number: 12438907
Contents
Executive Summary................................................................................4
Occupational health and safety..............................................................5
 Establish basic Rules that meet the International OSH Standards:..5
 Restriction of Hours of Work..........................................................5
 Define the Responsibilities of Employers using Contract Labour:. . .6
 Improve the Labour Standard Administration................................6
 Right Disposal of Waste.................................................................6
 Relief to Victims of Occupational Accidents...................................6
 Enhancement of Labour Inspection to Prevent the Recurrence of
Industrial Disasters..............................................................................6
Labour Laws in Japan:............................................................................7
 The Labour Standards Law (LSL):....................................................7
 The Trade Union Law (TUL):...........................................................7
 The Labour Relations Adjustment Law (LRAL)................................7
 Permanenet and fixed term contracts of employment  ..............7
 Probation....................................................................................8
 Special Contracts.........................................................................8
o Temporary work..........................................................................................................8
o Part-time work.............................................................................................................8
o Vocational training contracts...............................................................................9
 Suspension:...................................................................................9
 Termination of Contract.................................................................9
Collective Bargaining............................................................................10
Enterprise labour unions......................................................................10
Strikes..................................................................................................10
Lock outs:...........................................................................................11

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Hours of Work......................................................................................11
Leave Entitlements...............................................................................11
 Paid Leave....................................................................................11
 Maternity Leave...........................................................................11
 Child Care Leave...........................................................................12
 Sick Leave....................................................................................12
Employment of Minors.........................................................................12
Payment Wages in Japan......................................................................13
Jobs for Women in Japan.....................................................................13
Conclusion...........................................................................................13

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Executive Summary

Bicycle industry stated very long back in the early Meiji years in Japan. The

Japanese, since then have used bicycles as a mode of transport. However

technologically advanced it may be, Japan seems to lag when it comes to social

evolution and the pedal bicycle is no exception, despite being representative of

healthier lifestyles and energy conservation. It has become a part of their culture

and lifestyle. The city of Nagoya is called the model city of Bicycles in Japan.

In order to open a manufacturing industry in Japan, One needs to follow the

local rules and regulations. In this report, I have included the on the basic

policies on Organisational Health & Safety that needs to be followed when

opening a manufacturing industry in Japan. Since the Union system is still

followed in Japan labour systems, the details on the Unions and the payment

systems that need to be followed by Human resource personnel in any industry

in Japan have also been included in the report.

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Occupational health and safety is a discipline with a broad scope involving many
specialized fields. In its broadest sense, it should aim at:

 The promotion and maintenance of the highest degree of physical, mental and social
well-being of workers in all occupations;
 The prevention among workers of adverse effects on health caused by their working
conditions;
 The protection of workers in their employment from risks resulting from factors
adverse to health;
 The placing and maintenance of workers in an occupational environment adapted to
physical and mental needs;
 The adaptation of work to humans.

Japan is known to the world as a country of longevity, but the health of Japanese workers is
seriously deteriorating. Here, the primary administrative authority of occupational health is
the Ministry of Labour, and its legislative basis is the Industrial Safety and Health Law (ISH
law). Occupational health is mandated by this law and its enforcement involves the
appointment of an occupational health physician (OP) for workplaces with 50 or more
workers, and a full-time OP for workplaces  with 1000 or more workers. Worker health
examination is mandatory for all workplaces and many OPs allocate considerable  time to its
implementation. Occupational health organizations  provide occupational health services such
as worker health examinations to meet the demand. Basic training courses for OPs are
provided by the Japan Medical Association and advanced courses are provided  by the
University of Occupational and Environmental Health, Japan.
The Steps that must be taken to assist the workers for OHS is given below:

 Establish basic Rules that meet the International OSH Standards: The
Workers must be given all opportunities to be a part of all OSH activities. They must
have rights to refuse to work whenever they sense a serious threat to their safety and
health and to demand their employer disclosure of information. The workers must
also receive OSH education and training.

 Restriction of Hours of Work : The Government must lay down the principle of
time of work to 8 hours a day and 40 hours a week and 5 day-workweek. It must

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 prohibit in principle any overtime work in dangerous or hazardous duties, regulate
long overtime work that can cause health disorders and eradicate unpaid overtime
work. It must also ensure that workers can recuperate from fatigue by taking adequate
sleep and rest and that adequate personnel (pooled workforce) is secured everywhere
to avoid excessive workloads be imposed on workers.

 Define the Responsibilities of Employers using Contract Labour: The

Government must precisely define the responsibilities of enterprises using contract
labour for OSH management and compensation of work-related accidents and
illnesses for the sake of the workers they use.

 Improve the Labour Standard Administration : The number of labour

inspectors must be significantly increased so that on site inspection is carried out once
a year in every workplace with high-risk duties. The government must use OSH
committees more efficiently and promote the creation of an OSH committee in any
workplace with 30 or more workers.

 Right Disposal of Waste: The Government must take measures on periodic check
of disposal of toxic waste form the industries that might prove fatal for the workers.
The Toxic substances and their wastes must be continuously tracked by the
organizations. To help prevent acute and chronic illnesses caused by various kinds of
chemical substances and physical hazards, work environments should be monitored
with periodic measurements and hazard evaluations.
 Relief to Victims of Occupational Accidents : When dealing with applications
for recognition of occupational accidents and illnesses, the government must provide
a prompt (recognition at least within a year) and fair (recognition in principle of any
case whose work-relatedness is evident) relief to the victims.

 Enhancement of Labour Inspection to Prevent the Recurrence of

Industrial Disasters: A third-party investigation body must be put in place and be
given all necessary mandate as well as financial and human resources for enabling it
to thoroughly investigate the accident and identify its cause to prevent future
reoccurrences.

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Labour Laws in Japan:

Fundamental labour standards are granted in the Constitution. Those are:

 the right and the obligation to work

 a ban on child labour

 the freedom of workers' association - the worker's right to organize, to bargain and to
act collectively

Concerning individual labour law, it is stipulated that wages, hours, rest and other working
conditions be fixed by law Japanese labour law is established within this constitutional
framework. It is elaborated by acts, ordinances, collective agreements and work rules. The
Civil Code adopted on 27 April 1896 gives a basic definition of employment contracts.
Labour laws must additionally meet constitutional demands by setting minimum labour
standards. There are three major labour laws:

 The Labour Standards Law (LSL): The LSL regulates working conditions and
the workplace safety and hygiene.

 The Trade Union Law (TUL): The organizations or federations formed

autonomously and composed mainly of the workers for the main purposes of
maintaining and improving working conditions and raising the economic
status of the workers.

 The Labour Relations Adjustment Law (LRAL): The purpose of this Law in
conjunction with the Trade Union Law is to promote the fair adjustment of labour
relations and to prevent or settle labour disputes and thereby contribute to the
maintenance of industrial peace and economic development. 

The Employment process in Japan is on a contractual basis. There are different contacts laid
to the employees as shown below:

 Permanent and fixed term contracts of employment: Labour contracts of

a fixed term must not be longer than one year. In some exceptional cases, the
maximum period is three years. Such cases are labour contracts with highly skilled or

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 experienced workers who are necessary for either the development of new products or
temporary need of the business. The employment of workers who are at least 60 years
can also be limited up to three years. Skilled workers are often additionally needed or
small and medium sized enterprises may, for economic reasons, not entirely ensure
lifetime employment. Elderly employees often have the necessity to work after their
retirement age, because firstly they are not entitled to receive pension before reaching
a certain age and secondly the amount of the pension is often not enough to live on.
 Probation: Any labour contract may specify a probation period at the beginning of
the employment contract. The probation time is not legally limited. Its renewal is also
not prohibited by law. A protection against dismissal is nevertheless assured. After the
first 14 days of the probation time, the employer is legally forced to consider the
normal notice period of 30 days when giving notice. According to court rulings, the
employer's freedom to dismiss is also only merely extended during the probation time
 Special Contracts:

o Temporary work (dispatched work): A Temporary worker is governed by

the Worker Dispatching Law (WDL). In this employment situation, the worker
has an employment contract with a worker dispatching agency but works
under the direction of a client company which has concluded a dispatching
contract with the dispatching agency. The agency may hire the dispatch
worker on a permanent basis. However, most workers are only registered at
the agency and then employed for a period according to the request of a client
company. The worker can be dispatched but in principle only up to one year.
Exceeding the one year limitation the client company will be recommended
but not forced by the government to hire the temporary worker as its own
employee
o Part-time work: A Part-time worker is governed by the Part Time Work
Law (PTWL). In the year 2000, 14.7% of all employees worked part-time.
Most of them (91.8%) were women. Part-time workers are defined as workers
whose scheduled working hours per week are shorter than those of regular
employees in the same workplace.. Part-time workers are considered to be non
regular workers, like the fixed term contractors. Regular pay hikes, bonus
payment and retirement allowances thus actually do not apply to them.
However, a protection of part-time workers is intended by the PTWL.

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 o Vocational training contracts: Young employees are hired on the basis
of a normal labour contract and then trained on the job.
 Suspension: Many enterprise-based collective agreements and work rules establish
suspension periods. A suspension period is a period, during which the labour contract
continues to be in force, but the worker has no duty to work and the employer is partly
or even completely released from paying wages. Each suspension with a possible
wage decrease or even cut needs to be appropriate to the situation. If the suspension is
for reasons attributed to the employer (e.g. temporary layoff), the employer must pay
an allowance equal to at least 60% of the worker's average wage.
 Termination of Contract: Termination of a labour contract at the worker's and
the employer's initiative is governed by Civil Code, under which they are free to
terminate the contract. Notice must be given at least 30 days in advance before the
dismissal takes effect. The number of days can be reduced, if the employer pays the
average wage for each day by which the period is shortened. It is recommended by
court rulings but not legally required to give notice in writing. Legal precedent further
established the rule, that the dismissal must be based on a reasonable cause. Without
reasonable cause any dismissal is regarded as an abuse of the right to dismiss and thus
considered null and void. For example, a dismissal for business reasons is allowed, if
it satisfies all of the four requirements set by court:

 A personnel reduction is based on business necessity.

 Every possible measure to avoid layoffs is tried.

 The selection of employees to be dismissed is made on an objective and reasonable

basis.

 The employer consults faithfully with unions or employees.

On the contrary, dismissals on the following grounds or during the following periods are
regarded as null and void:

 reason of marriage, pregnancy or childbirth

 the sex of the worker

 during the absence of an employee because of work related illness and 30 days
thereafter

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 during an employee's maternity leave and 30 days

Collective Bargaining: A collective agreement functions as a labour contract between

an employer and one or more unions. Collective bargaining consists of the process
of negotiation between representatives of a union and in respect of the terms and conditions
of employment of employees, such as wages, hours of work, working conditions
and grievance-procedures, and about the rights and responsibilities of trade unions. All
collective agreements apply primarily to those employees who are trade union members. If in
one workplace, three-fourths of comparable workers fall under a collective agreement, this
agreement applies to all workers of the same kind within the workplace. A collective
agreement may have general binding power even in a whole locality, which is actually an
exception. This requires that the agreement applies to a particular locality, not only to a firm,
and a majority of comparable workers is bound. Further, the Ministry of Health, Labour and
Welfare must upon request of either party and pursuant to a resolution of the Labour Relations
Commission declare the agreement as binding to all workers of the same kind.

Enterprise labour unions: Enterprise labour Unions are Japan’s dominant form of
labour organization because each enterprise union exercises labour’s three primary rights: the
rights to organize, bargain collectively, and strike. Each enterprise union has most of the
staff, funding, and other materials necessary to exercise labour’s three primary rights. Labour
unions play the role of maintaining and improving workers’ quality of life and working
conditions. The enterprise unions are only intended for permanent staff employed at the
concerned companies, and non-permanent employees are generally not included. The
enterprise union is a mixed union organized as a single trade union for all permanent
employees.

Strikes: Labour disputes are defined in the Labour Relations Adjustment Law (LRAL) as a
disagreement over claims regarding labour relations arising between the parties concerned
with labour relations resulting in either the occurrence of acts of dispute or the danger of such
occurrence. Legally recognized are the acts of dispute mentioned in the LRAL, such as
strikes, slowdowns and other acts hampering the normal course of work, like the order to all
workers to take holiday on the same day or the posting of posters on the establishment’s
premises. Also shutting down the flow of traffic through the gates is a legal form of labour
dispute, as long as it is peaceful. All acts must additionally be for a lawful purpose, which is

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surely the achievement of better working conditions. The workers are paid no wages while
striking.

Lock outs: The employer's right to lock out employees is not constitutionally and legally
established. However, it is recognized as a right of defence by a majority, but the employer
needs to gain first an injunction from the court.

Hours of Work: The average working time as stipulated in Article 32 of the LSL is 40
hours per week and 8 hours per day.  The average working time during the agreed period
must not exceed 40 hours per week. The employer must also provide at least one rest day per
week as well as rest periods during working hours, at least 45 minutes after 6 working hours
and one hour after 8 working hours (Arts. 34 and 35 of the LSL). Night work against
increased wages is legally permitted but cannot be ordered to those workers who are raising a
child and request to be accepted. Overtime work may also be stipulated by agreement of the
employer and the trade union

Leave Entitlements: Every employee in Japan is entitled to leaves. These types of

leaves are given below:

 Paid Leave: Annual leave with pay of the average wages is granted in the LSL. The
worker can claim it, only if he/she reported for work on at least 80% of the total
working days. The number of annual leave days is related to the time the worker has
already been employed in the enterprise counting only those years, in which the
worker reported sufficiently for work. Upwards of 6 months of continuous
employment, the worker can claim 10 days of annual leave. In the following two
years, one day per year is added. However, the total number of annual leave days does
not become more than 20 days. In Japan, there are also 14 national holidays a year,
which are not legally binding for the private sector.

 Maternity Leave: Maternity protection is regulated by the LSL. During pregnancy

and up to one year after childbirth, a ban is put on heavy physical work and on work
with dangerous materials. Upon request, the expectant or nursing mother has the right
to refuse overtime or night time work and may ask for light work as well. Maternity
leave is secured by the LSL, which does not include any payments during this period.
Upon request, a woman is excused from work within 6 weeks up to childbirth and in

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 case of a multiple birth, within 14 weeks up to giving birth. Within 8 weeks after
childbirth, there is in principle a ban on work, but the mother may return to work after
6 weeks, if upon her request and a doctor's approval.
 Child Care Leave: The Child Care Leave Act provides for child care leave, which a
female as well as a male worker may take in order to care for her/his child who is less
than one year old. This right does however not apply to fixed term contractors. A
child care leave benefit is paid according to the Employment Insurance Law. The
employee is also entitled to leave in order to care for a family member according to
the Child Care and Family Care Leave Act. The family member, who might be the
spouse, the child, the parents or even the grand-parents, needs to be in a condition
requiring continuous care. Such leave must not exceed three months and can, except
for certain circumstances, be exercised only once per person. The employee does not
get any payment during this period.
 Sick Leave: Sick leave as described under Suspension is not ruled by law. It may be
established by work rules. Work rules can also stipulate assistance for injury or
illness. However, the employee must be given time off to carry out official duties.
During menstrual periods, female employees can also request days off

Employment of Minors: An employer shall not employ children until the first 31st of
March following their having fully reached the age of 15 years. The employer shall keep at
the workplace a certificate issued by the head of that child's school certifying that the
employment does not hinder the school attendance of the child or written consent from the
child's parent or guardian. An employer shall not allow persons under 18 full years of age to
clean, oil, inspect, repair the dangerous parts of any machinery or power-transmission
apparatus while in operation, to put on or take off the driving belts or ropes of any machinery
or power-transmission apparatus while in operation, to operate a crane driven by poker, to
engage in any other dangerous work as specified by Ordinance of the Ministry of Health,
Labour & Welfare, or to handle heavy materials as specified by Ordinance of the Ministry of
Health, Labour & Welfare. An employer shall not employ persons under 18 full years of age
in work involving the handling of poisons, powerful drugs or other injurious substances, or
explosive, combustible or inflammable substances, in places where dust, power, harmful gas,
or radiation is generated or places of high temperatures and pressures, or other places which
are dangerous or injurious to safety, health, or welfare.

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Payment Wages in Japan: The Japanese wage system is highly dependent on the
number of years served with the same company, the employee's level of education and the
age also being taken into consideration. Wages are defined as any payment to the worker
from the employer, including salaries, allowances and bonuses. The allowances are paid
according to particular work rules, e.g. housing allowance or retirement allowance. However,
a minimum wage is guaranteed to any employee, as stipulated in the Minimum Wage Act.
The minimum amount is not specified in legislation but set and frequently adjusted by the
Ministry of Health, Labour and Welfare in consultation with the Minimum Wage
Deliberation Commission.

Jobs for Women in Japan: An employer shall not have women over 18 full years of
age work underground; however, this shall not apply to those engaged in work specified by
Ordinance of the Ministry of Health, Labour & Welfare which is performed underground due
to temporary necessity (excluding those specified by Ordinance of the Ministry of Health,
Labour & Welfare as expectant and nursing mothers. A woman raising an infant under the
age of one full year may request time to care for the infant of at least 30 minutes twice a day,
in addition to the rest periods When a woman for whose work during menstrual periods
would be especially difficult has requested leave, the employer shall not have the said woman
work on days of the menstrual period.

Conclusion
When any organization enters into a foreign market, it is bound to follow the Laws, Rules &
Regulations maintained and followed in the foreign country. One needs to look into the
Labour force, the Unions (depends on the country), the labour health& safety, the work
culture and the way the country operates. We need to blend our way into the country’s
culture. The above given details are the basic norms that would assist any organization to
survive in Japan’s market. The data given above will help the any Human Resource officer to
bring the organization in flying colours when followed.

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