Labor

According to the Israeli newspaper Haaretz, a report studying freelancers published by consulting firm Mackenzie said that the gig economy has done away with workers’ rights achieved through decades of activism and legislation. Mackenzie concluded that freelancers face labor conditions similar to those of workers before the Industrial Revolution.

The advantage for employers is clear, as working with freelancers offers companies managerial flexibility. They pay for the services of a person as if that person were an entire company, without any obligation to provide social benefits or fulfill labor laws. It turns the employer–employee relationship into a customer–supplier one, which can be very unequal.

A report by the Upwork and Freelancers Union forecasts that by 2027, some 50% of all U.S. workers will be freelancers. Mackenzie estimates that the current proportion is around 20-30%, which includes people who supplement their income through freelance work.

Japan's Cabinet has approved a draft bill that would allow the entry of more foreign blue-collar workers as the country's rapidly aging population faces labor shortages.

The bill is a major revision of Japan's policy on foreign labor. The country has long resisted accepting foreign workers, except for doctors, teachers and others in highly skilled fields. The proposed legislation would create two new visa categories for foreigners employed in more than a dozen sectors facing labor shortages, such as nursing, farming, construction and services.

Prime Minister Shinzo Abe denied that the new policy means Japan is opening its doors to immigrants, to reassure his nationalist supporters. Opponents are concerned about crime and jobs taken away from Japanese, while proponents say foreign workers are indispensable in sectors facing labor shortages.

When asked to imagine a typical image of white-collar workers in Japan, salarymen in suits may come to mind. On the flip side, blue collar workers in "work wear" tend to be associated with less flattering stereotypes, dubbed the “3K”—kitsui (demanding), kitanai (dirty) and kiken (dangerous) in Japanese.

Work wear that looks exactly like a business suit, developed by a Tokyo-based plumbing firm, might be helping to improve the image of blue-collar workers. It has been proving popular recently among people in various industries, ranging from waste collection and building maintenance to agriculture.

Japan's lower house on May 31 approved controversial labour reforms that the government has defended as necessary to boost the economy. But, critics warn could result in more death by overwork. The legislation would scrap hourly overtime pay for some employees, while setting overtime caps for others at an annual limit of 360 hours for normal cases, and up to 720 hours for "temporary" and "special" cases. 

The government says the measures will boost efficiency and equality, and they form a key plank of Prime Minister Shinzo Abe's "Abenomics" policy to kickstart the country's sluggish economy. The reform's key feature is letting Japan's corporate sector hire select highly paid professionals, such as currency traders and consultants, on contracts which include no overtime pay. The category only applies to those who earn at least 10.75 million yen ($100,000USD) annually, with employers required to seek the consent of professionals involved.

Japan’s biggest banks are racing to adapt to changing business conditions amid the shrinking population and spread of online banking.

Many have laid out plans to downsize their workforce and massive network of branches while investing in “fintech”—technological innovation in the financial sector—to streamline their operations and make banking more convenient for their customers.

Mitsubishi UFJ plans to trim 6,000 jobs from the unit’s domestic workforce of 40,000 by the end of fiscal year 2023.

Group CEO Nobuyuki Hirano said he does not foresee layoffs but instead plans to do this “organically” by keeping the number of new hires down as staff taken on in bulk in the run-up to and during the late-1980s asset bubble economy gradually reach the age of retirement.

On one of the busiest online shopping days of the year, Black Friday, thousands of Amazon employees decided it was also a good day to walk off the job. Warehouse workers in several distribution centers in Germany and Italy took the day off to demand higher wages and better treatment. ​

In addition to asking for a pay raise, the German union Ver.di says Amazon needs to vastly improve the “work culture” and stop pushing employees too hard. The Italian Amazon workers that participated in the Black Friday strike said they want “dignified salaries” more in line with their jobs. They gathered outside one distribution center located in Piacenza.

China’s Huawei technologies, the world’s third largest smartphone maker after Apple and Samsung, has announced plans to build new R&D facilities in Chiba, Japan.

This news shows the general trend of Chinese corporations becoming multinationals, but what struck Japanese people is not this news, but other news that Huawei Japan is offering the starting monthly salary of 400,000 Japanese yen.

According to Rikunabi, one of the largest Japanese on-line job search sites, Huawei is offering 401,000 yen for college graduates and 430,000 yen for Masters degree holders.

The falling cost of industrial robots will allow manufacturers to use them to replace more factory workers over the next decade while lowering labor costs, according to new research.

Robots now perform roughly 10 percent of manufacturing tasks that can be done by machines, according to the Boston Consulting Group. The management consulting firm projected that to rise to about 25 percent of such "automatable" tasks by 2025.

In turn, labor costs stand to drop by 16 percent on average globally over that time, according to the research.

The shift will mean an increasing demand for skilled workers who can operate the machines, said Hal Sirkin, a senior partner at Boston Consulting.

Factory workers "will be higher paid but there will be fewer of them," Sirkin said.