2 years, 8 months ago
In a recession, how does Japanese, life-long employment companies adjust?
How do these large companies cut costs and still maintain labor?
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$1 Answer
They branch out their employees, (Someone was telling me about this like a month ago)
Lets say there is a garbage company in Japan, if they would have to lay off workers (because there isn't enough work) they would instead take their employees and have them go pick up trash along the side of roads. They would just keep trying to put them somewhere doing something so they wouldn't let them go.
I would only assume they would cut their pay (not sure by how much) they would however have a job, and be doing something constructive.
Lets say there is a garbage company in Japan, if they would have to lay off workers (because there isn't enough work) they would instead take their employees and have them go pick up trash along the side of roads. They would just keep trying to put them somewhere doing something so they wouldn't let them go.
I would only assume they would cut their pay (not sure by how much) they would however have a job, and be doing something constructive.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
Here are some ways they could cut labor costs: health benefits, retirement matching, bonuses, wages, and company subsidies (housing, sports, food, travel allotments). The employees sacrifice while the company is distressed and keep it surviving.
How do unions affect company survival in Japan?
Japan has a government run health care system, so cutting benefits wouldn't really work. I don't know if they have 401ks (so to speak) but I suppose they could say they would cut it for a while. Of course they could cut the fat (like you said housing and what not).
Unions are a tricky thing. Here in Florida we all see unions as more help for the person who doesn't want to work and wants to get paid. Our company even offers better benefits for not being in a union. Unions tend to keep a lot of pressure on companies by kind of holding them hostage. They say if you don't do what we want (or agree to some change) we wont work.
I can understand some groups of workers needing them (like teachers here in the US). So in a way a Union would kind of limit what Japanese companies could cut without getting problems from the unions.
Union sizes are shrinking because they thrive during booms and bust during recessions. Recessionary pressures are causing unions to become expensive.