Comment on Andrew Gordon

L U C I E N E L L I N G T O N *

Andrew Gordon's book, The Evolution o f Labor Relations in Japan, is con- sidered by Japan specialists to be the outstanding English language work on the subject. In that book and in his presentation, Professor Gordon's findings enable those of us interested in industrial relations to think more deeply about the past, present, and future for managers and workers in Japan and the U.S.

Gordon has done an excellent job of laying to rest perhaps the biggest mis- taken idea many Americans have about Japanese industrial relations, that long- time harmony has been present in the Japanese workplace. Considerable strife, compromise, and time passed before the "enterprise as family" ethos became the norm in large Japanese companies. Americans who desire improved management- labor relations in the U.S. and look to Japan for lessons should be most aware of the difficult compromises that occurred between workers and managers, which were a vital prerequisite in achieving the current enviable state of affairs.

Japanese management learned to treat workers as fellow employees rather than in a condescending fashion, and workers learned to understand and accept the basic economic truth that their well-being was tied to company productivity and profitability. In the United States, there are reasons to believe that some American manufacturing firms, particularly those that have been battered about by tough foreign competition, are learning these lessons.

Professor Gordon has also laid to rest the mistaken belief that Japanese unions are docile - - rubber stamps for management. Although the Japanese now lose significantly fewer days because of strikes as compared to the U.S. or Western Europe, strikes do still occur in Japan. Annual collective bargaining, in which both unions and managers in countless Japanese firms sacrifice respective preferred goals to reach consensus in contract negotiations, is also an integral part of the Japanese industrial relations process.

Allow me to turn my attention toward what I consider to be a major impli- cation of Professor Gordon's description of the evolution of Japanese labor- management relations: the dynamism of the process. Less than 40 years ago the Japanese were embroiled in fierce strikes and protracted lockouts. Unless both management and labor are constantly attentive to new developments, there is no guarantee that history won't repeat itself in Japan. What are some trends in

*Lucien Ellington is Co-director o f the Japan Project at The University o f Tennessee at Cha t tanooga , T N 37403.

JOURNAL OF LABOR RESEARCH Volume XI, Number 3 Summer 1990

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Japanese industrial relations that could threaten the present extremely harmoni- ous status quo?

Perhaps the greatest possible future change in Japanese industrial relations could be the demise of so-called lifetime employment in large companies. Already there is some evidence that because of cost pressures on firms it is more difficult to obtain permanent employment in large Japanese companies than it was a decade ago. At the same time, some Japanese employed in large companies are beginning to change employers instead of staying with the same firm for life. Even though a growth in increased labor mobility will bring economic advantages, if this trend continues it could also seriously threaten the "enterprise as family" ethos.

There is substantial evidence that many in Japan's labor movement feel threat- ened by the economic events of the last decade. During the 1980s, Japanese labor union membership declined steadily while union leaders voiced concern over such problems as increased Japanese foreign investment and the growing number of foreign workers now allowed into Japan. At the same time, large increases in the number of women in the work force and the growth of service jobs in the economy will undoubtedly affect future Japanese industrial relations.

We all are aware of the tremendous economic benefits the Japanese have accrued, partly because of harmonious industrial relations. That harmony was not easily attained, nor is there any guarantee for the future. How well the Japa- nese maintain the present situation in the face of constantly changing domestic and international economic conditions will depend on the creativity, flexibility, and astuteness of managers and workers.