Prioritize job security, Nikai urges business chiefs

Economy, Trade and Industry Minister Toshihiro Nikai urged business leaders Thursday to make job security their priority, despite management difficulties arising from the global financial crisis.

"Your cooperation is indispensable" for addressing employment issues, Nikai told a meeting with 13 industry chiefs, including Toshiba Corp. President Atsutoshi Nishida, Nippon Steel Corp. Chairman Akio Mimura, Mitsubishi Corp. President Yorihiko Kojima and Sharp Co. President Mikio Katayama.

Job security has become "a very big political issue" amid the crisis, Nikai said.

He also said the government must first see how much businesses will ensure employment when it studies tax breaks and other policies requested by business chiefs.

But the business heads who attended the meeting at a Tokyo hotel did not make any comments about job issues, industry ministry officials said.

"I believe that each company will try its best," in reference to employment issues, Toshiba's Nishida told reporters after the meeting.

The meeting, which was not called to discuss employment issues, was held at a time many major companies in Japan and elsewhere are cutting jobs in the face of toughening business conditions amid the faltering economy.

On Tuesday, Sony Corp. announced 16,000 job cuts around the world by March 2010.

Some of the executives at the meeting touched on the World Trade Organization's Doha Round of free-trade talks, saying a prompt and successful conclusion is important for expanding business opportunities for Japanese firms, the officials said.

They called for a breakthrough as the WTO Secretariat and key trading powers are making last-ditch efforts to organize a ministerial meeting later this month in Geneva in an attempt to unlock the repeatedly delayed negotiations.

About 35 percent of companies covered by a recent survey said they have made employment adjustments over the last three months, according to the Japanese Trade Union Confederation (Rengo).

The survey of company unions found that 48.3 percent of manufacturers have undertaken employment adjustments steps. The poll was conducted Nov. 14 to Nov. 28.

Such measures include trimming overtime work, reducing temporary staff and relocating workers.

Rengo forecasts more companies will make employment adjustments in the face of the deteriorating economy.

The survey covered 5,201 unions under the umbrella of the confederation, of which 1,363, or 26.2 percent, responded.