Gov't urges business leaders not to cut jobs

Friday 12th December, 04:53 AM JST

TOKYO —

Economy, Trade and Industry Minister Toshihiro Nikai held talks with business leaders Thursday, urging them to avoid cutting jobs as they cope with the global financial crisis.

Nikai said job security has become “a major political issue,” and urged 13 company leaders to do their utmost to maintain their work force.

“Your cooperation is indispensable,” he said, addressing growing public fears of job cuts as Japanese companies struggle to survive and make daily headlines with layoffs and production adjustments.

The global slump has affected Japan’s export-driven economy, which depends heavily on overseas demand for its cars and gadgets to fuel growth.

“I’m afraid certain level of job cuts are unavoidable under the current economic conditions,” Mitsubishi Electric Corp President Tamotsu Nomakuchi, told reporters after the meeting.

The meeting was also attended by the presidents of Toshiba Corp and Sharp Co and other manufacturers including Nippon Steel Corp and brewery Kirin Holdings Co. Discussions largely focused on trade, environment and tax issues, said ministry official Yuji Iida.

Sony Corp this week announced plans to slash 8,000 workers, or 4% of its global payroll, in Japan’s biggest job cuts since the U.S. credit crunch hit this summer.

The government has been compiling measures to curb the impact of ongoing restructuring at companies, which so far have largely targeted part-time workers.

Nikai said Tuesday that his ministry planned to set up some 100 “job cafe” outlets across the country to support job seekers. He urged local governments to shift more of the budget to employment programs.

The government has also launched a program to help small businesses obtain loan guarantees more easily and stay in business, Nikai said.

Japan’s main labor group Japan Trade Union Confederate on Wednesday released results of a November survey of labor unions nationwide that showed one in three Japanese manufacturing companies have slashed jobs and reduced working hours in the past three months. The survey found 40% of companies expected similar adjustments in coming months.

Wire reports

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8 Comments

some14some at 07:31 AM JST - 12th December

...and business leaders will respond by cutting more jobs. Preliminary estimate for job cuts 30,000 by 31st March, 2009 and i will not be surprised if final count reaches to 100,000 or more layoffs !
thepro at 08:42 AM JST - 12th December

Please don't cut jobs! The next election is looking worse and worse for us!
HeathenCabin at 09:45 AM JST - 12th December

Urge the Government to cut jobs instead.
rajakumar at 07:37 PM JST - 12th December

Not question of cutting work and jobs. Slowdown create less income,that creates less jobs.

Business can only make jobs that they can pay the salaries. Slowdown reduces salaries and revenues.

Business jobs will increase when someone/everyone, fixes the cause of the slowdown,why all are trying their best to do.
rajakumar at 07:43 PM JST - 12th December

Why are so many people trying to fix the slowdown,we just need to create a new giant biggest superpower finance body and one man in charge, to fix the problem.
mareo2 at 10:34 PM JST - 12th December

The Gov't is patetic.
30061015 at 01:42 AM JST - 13th December

It is not govts business to urge anyone to do anything. The business of business is to make money, not create job programs like the govt. If the govt. wants to help, then let them lower taxes & make it more affordable for companies to keep workers and for workers to keep spending. J-govt...put your money where your mouth is.
sharky1 at 03:32 AM JST - 13th December

Business Leaders to Government: How much will you pay us not to cut jobs?