Dying to work: Japan Inc.’s foreign trainees

“The Industrial Trainees and Technical Interns program often fuels demand for exploitative cheap labor under conditions that constitute violations of the right to physical and mental health, physical integrity, freedom of expression and movement of foreign trainees and interns, and that in some cases may well amount to slavery. This program should be discontinued and replaced by an employment program.”

JORGE BUSTAMANTE, U.N. SPECIAL RAPPORTEUR ON THE HUMAN RIGHTS OF MIGRANTS, APRIL 2010

According to Lila Abiko of the Lawyers’ Network for Trainees, foreign “trainees” and “interns” are really just cheap migrant labor under another name.

Although the official purpose of the training and internship program is “international contribution and cooperation through human resource development of technology,” Abiko believes the reality is very different.

“There is a big gap between this system’s purpose and the reality. This is a fundamental problem,” she said.

Abiko argues that the trainee and intern system developed the way it did in Japan because of innate problems in the country’s immigration law.

In 1989, at the height of Japan’s bubble economy, an amendment was made to the Immigration and Control and Refugee Recognition Act that established the new “trainee” status-of-residence category.

At this time, a massive need for labor had developed as a result of Japan’s booming economy, but public opposition to the notion of accepting unskilled foreign labor en masse remained high.

Fearful of upsetting public opinion but under pressure from corporate Japan, the government decided to let in foreign migrant workers as “trainees.” At the same time it also granted Brazilians of Japanese descent long-term residency status.

Thus, Abiko claims, corporate Japan’s hunger for labor was largely sated, but a system had been formed whose true intentions were concealed behind a facade of altruistic intentions.

Originating mainly from China and Southeast Asia, trainees and interns are lured to Japan with the promise that they will acquire skills and knowledge they can later use in their own country. Instead, many of them get low-paid, unskilled jobs, minus the basic rights and safeguards any Japanese worker would enjoy.

Recent amendments to the Immigration Control Act, which also included changes to Japan’s alien registration card system, have improved the situation for participants of the internship program, although arguably it is a case of too little, too late.

Under the old system, those in the first year of the program were officially classed as “trainees,” not workers, meaning they were unable to claim the protections Japanese labor law affords regular employees.

For example, the minimum wage in Japan varies according to prefecture, and currently the national average is ¥713 per hour. But as foreign trainees are not technically “workers,” employers are not obliged to pay them even this. Instead, they receive a monthly “trainee allowance,” which for most first-year trainees falls between ¥60,000 and ¥80,000 — the equivalent to an hourly wage in the range of ¥375 to ¥500 for a full-time 40-hour week.

For first-year trainees, trying to survive on such a low income is a real struggle, so most have to do a great deal of overtime just to make ends meet.

Although the “trainee” residency status still exists for foreign workers who arrived before 2010, it is currently being phased out, and from 2011 all first-year participants in the program will be classed as technical interns. This a significant step forward, as the Labor Standards Law and the Minimum Wage Act apply to foreign migrant workers with technical-intern residency status. However, whether migrant workers are actually able to access the protections they are entitled to is another matter, and the issue of oversight — or the lack of it — is still a long way from being resolved.

Abiko believes this absence of proper oversight has grown out of the internship program’s weak regulatory structure and a general lack of government accountability. The government entrusts most of the operations of the internship program to JITCO, an authority that lacks the power to sanction participating organizations or companies, says Abiko.

“JITCO is just a charitable organization. It is very clear that JITCO is not appropriate to regulate and monitor this program.”

In addition, she argues, the financial relationship between JITCO and the collectives or companies under which trainees work makes JITCO’s role as a regulatory body even more untenable. JITCO’s total income for the 2008 financial year was ¥2.94 billion. More than half this amount, ¥1.66 billion, came from “support membership fees” paid by the companies themselves.

“How can JITCO appropriately regulate and monitor their support members when they are dependent on them for membership fees?” she said.

http://search.japantimes.co.jp/cgi-bin/fl20100803zg.html

Executive pay on the rise at top Japanese firms

Japan has at least three listed companies where a top executive earned more than 100 times the average annual salary for employees in the year ended March, according to their settlement accounts.

“I felt disheartened to hear that the president received about 900 million yen when many workers are wondering every day how to save on even 1,000 yen,” says one [Nissan] employee.

A female employee at Dai Nippon Printing said the president’s level of compensation “came as a shock because bonuses for employees have been falling nonstop.”

Salaries of company employees in Japan have been stagnating.

While executive compensation at large corporations capitalized at 1 billion yen or more increased 23 percent from fiscal 2001 to fiscal 2007, the salaries of employees have more or less remained unchanged over the same period, according to Finance Ministry statistics.

The cash earnings for employees fell year on year for 21 consecutive months through February partly due to the global financial crisis, according to labor ministry figures.

http://www.asahi.com/english/TKY201007260410.html

Talks drag on, teachers fired in Berlitz case

After 20 months of legal wrangling, neither side has managed to snag a win in Berlitz Japan‘s ¥110 million lawsuit against five teachers and their union, Begunto.

On the recommendation of the case’s lead judge, the company and union have been in court-mediated reconciliation talks since December. The agreement to enter the talks came after a year of court hearings into the suit.

“The vast, vast majority of cases (in Japan) are decided out of court, and that’s the way the whole thing is designed,” explains lawyer Timothy Langley, president of Langley Enterprise K.K., a consultancy specializing in labor issues. “It works even though it’s frustrating; people eventually define the solution themselves.”

Louis Carlet, one of the union officials being sued, describes progress at the once-a-month, 30-minute negotiating sessions as “glacially slow.”

It will be up to the judge to decide how long to let this process play out, says Tadashi Hanami, professor emeritus at Sophia University and former chair of the Central Labor Relations Commission. “Talks for the purpose of conciliatory settlement will continue as long as the judge finds there is a possibility for settlement by compromise.”

The current focus of negotiations is the amount of notice union members should give the company ahead of industrial action. Initially, Berlitz Japan offered to drop their lawsuit if teachers gave a week’s notice before striking. Begunto proposed five minutes. Since teachers typically only learn the next day’s schedule the night before, the judge instructed the company to come up with a better offer.

Asked how much notice unions legally have to give before striking, Langley replied, “None. Zero. That’s one of the beauties of a strike: You just strike.”

In the latest round of talks held Thursday, Berlitz Japan requested contract teachers give strike notification by 3 p.m. the day before, and per-lesson teachers by 5 p.m. Begunto pointed out to the judge that per-lesson teachers don’t receive their schedule until 6 p.m. the day before. Union executives have taken the offer back to members for consideration.

The battle between Berlitz Japan and Begunto began with a strike launched Dec. 13, 2007, as Berlitz Japan and its parent company, Benesse Corp., were enjoying record profits. Teachers, who had gone without an across-the-board raise for 16 years, struck for a 4.6-percent pay hike and a one-month bonus. The action grew into the largest sustained strike in the history of Japan’s language school industry, with more than 100 English, Spanish and French teachers participating in walkouts across Kanto.

On Dec. 3, 2008, Berlitz Japan claimed the strike was illegal and sued for a total of ¥110 million in damages. Named in the suit were the five teachers volunteering as Begunto executives, as well as two union officials: the president of the National Union of General Workers Tokyo Nambu, Yujiro Hiraga , and Carlet, former NUGW case officer for Begunto and currently executive president of Zenkoku Ippan Tokyo General Union (Tozen).

While believing their strike to be legal, Begunto decided to suspend industrial action until the lawsuit is settled rather than risk the dismissal of union members. However, the company fired two of the teachers it’s suing anyway.

One, who didn’t want to be named, received word of his dismissal just before shipping out to Afghanistan as a U.S. Army reservist at the end of July 2009. Berlitz Japan had allowed the teacher to take unpaid leave for military duty several times before the strike. But after being the only teacher at his Yokohama branch to walk out, he began getting complaints from students.

According to Begunto members, after being ordered to deploy to Afghanistan, Berlitz Japan told the teacher he could take a leave of absence of less than a year, and that he’d have to quit if he needed more than a year. Two days before he left for Afghanistan the company fired him. According to the dismissal letter, his performance was subpar and was hurting the company’s image.

“The union believes strongly that the teacher’s dismissal was because he was the only striker at Yokohama,” says Carlet.

Another of the teachers named in the suit, Catherine Campbell, was fired earlier this month after taking too long to recover from late-stage breast cancer cancer. In June 2009, Campbell took a year of unpaid leave to undergo chemotherapy and radiation treatment. Because Berlitz Japan failed to enroll Campbell in the shakai hoken health insurance scheme, she was unable to receive the two-thirds wage coverage it provides and had to live with her parents in Canada during treatment. The company denied Campbell’s request to extend her leave from June to Sept. 2010 and fired her for failing to return to work.

Berlitz Japan work rules allow for leave-of-absence extensions where the company deems it necessary.

“If cancer is not such a case, what would be?” Campbell asks. “On one hand, I’m lucky to be alive and healthy enough to even want to go back to work, so everything else pales in comparison,” she explained. “But on the other, the company’s decision does seem hard to understand. The leave is unpaid, and I don’t receive any health benefits, so it wouldn’t cost Berlitz anything to keep me on; and for me, it’s that much harder to restart my life without a job.”

Michael Mullen, Berlitz Japan senior human resources manager, declined to comment for this article, writing in an e-mail, “At the current time the company does not want to make any comments due to the ongoing legal dispute.”

The union is fighting both dismissals at the Tokyo Labor Commission. The panel is also hearing an unfair labor practices suit filed by Begunto that charges Berlitz Japan bargained in bad faith and illegally interfered with the strike by sending a letter to teachers telling them the strike was illegal and to stop walking out.

The next round of reconciliation talks and Tokyo Labor Commission hearing are both scheduled for Sept. 6.

http://search.japantimes.co.jp/cgi-bin/fl20100727a1.html

Uniqlo chief Yanai calls on Japan to internationalize, accept immigration

The positive sides to immigration are enormous, as immigrants would both increase the population and stimulate the economy. If Japanese come into everyday contact with foreigners from childhood, it would also help alleviate Japanese people’s distaste for internationalization. Europe, the U.S. and all the other advanced nations in the world accept immigrants. As the economy grows more globalized, this is not an age when Japan can get along with Japanese people only.

We are making all Japanese staff at our headquarters and all employees at store manager level or higher study English to the point they can get a TOEIC (Test of English for International Communication) score of at least 700 points in the next two years. (A perfect score is 990.) The number of our foreign employees is rising, English will be made Fast Retailing’s official language in fiscal 2012, and we are aiming to globalize company management.

http://mdn.mainichi.jp/mdnnews/news/20100724p2a00m0na003000c.html

自治体財政難、ALT直接雇用激減 労使トラブルも

小中学校や高校に配置され子供の国際理解を手助けする外国語指導助手(ALT)。厳しい財政事情を背景に、自治体による直接雇用が減り、民間企業を通じた派遣や業務委託が増えている。一方、元ALTの英国人男性が、ALT関連としては県内で初めて県労働委員会に不当労働行為の救済を申し立てて、20日に証人尋問が行われるなど、雇用をめぐるトラブルも表面化。自治体の直接雇用を求める声が上がっている。

Read more

Stop exploiting trainees as cheap labor: lawyers

It is high time the government faced facts and scrapped its industrial training and internship program because it is used to exploit foreign trainees as a cheap source of labor, a lawyer group said Thursday, claiming the purpose of the system and its reality are worlds apart.

The trainee system is touted as making an international contribution by transferring Japan’s industrial expertise to people from developing countries. But in reality, foreign trainees are underpaid and overworked without being given a chance to learn any skills, according to Lawyers’ Network for Trainees.

“A drastic review of the program is necessary. . . . The system is functioning to receive cheap unskilled laborers and exploit them,” lawyer Lila Abiko, the group’s secretary general, said in Tokyo at The Foreign Correspondents’ Club of Japan.

Pointing at the death of a Chinese trainee in Ibaraki Prefecture in 2008 that was recognized as “karoshi” (death from overwork) by a labor office in the prefecture early this month, Abiko said the case is only “the tip of the iceberg.”

Twenty-seven foreign nationals, most of them in their 20s and 30s, who came to Japan under the training program died in fiscal 2009, marking the second-highest tally on record after the 35 deaths seen the year before. An earlier report on the 2009 fatalities said nine died of brain or heart disease, four died while working, three committed suicide, three died in bicycle accidents and the rest died of unknown causes.

The training and internship programs, established in 1993 by the government, allow foreigners to work as technical interns at companies for up to two years after they undergo a year of training.

“I lost all heart,” said Li Quing Zhi, a 34-year-old Chinese, who also attended the news conference.

Zhi, who came to Japan under the program in 2007, said he worked from 7 a.m. to 10 p.m. every day at a fixture-making company in Saitama Prefecture with only 21 days off a year. He was paid only part of his overtime wages for the first year, just ¥400 per hour. After he complained, Zhi’s work was ended last March.

“If the Japanese industry needs labor from foreign countries, Japanese citizens have to discuss how to accept them as labor with a full guarantee of labor rights. In this system, they are not guaranteed labor rights,” Abiko said.

http://search.japantimes.co.jp/cgi-bin/nn20100723a3.html

Japan Training Program Is Said to Exploit Workers

Six young Chinese women arrived in this historic city three summers ago, among the tens of thousands of apprentices brought to Japan each year on the promise of job training, good pay and a chance at a better life back home.

Instead, the women say, they were subjected to 16-hour workdays assembling cellphones at below the minimum wage, with little training of any sort, all under the auspices of a government-approved “foreign trainee” program that critics call industrial Japan’s dirty secret.

“My head hurt, my throat stung,” said Zhang Yuwei, 23, who operated a machine that printed cellphone keypads, battling fumes that she said made the air so noxious that managers would tell Japanese employees to avoid her work area.

Ms. Zhang says she was let go last month after her employer found that she and five compatriots had complained to a social worker about their work conditions. A Japanese lawyer is now helping the group sue their former employer, seeking back pay and damages totaling $207,000.

Critics say foreign trainees have become an exploited source of cheap labor in a country with one of the world’s most rapidly aging populations and lowest birthrates. All but closed to immigration, Japan faces an acute labor shortage, especially for jobs at the country’s hardscrabble farms or small family-run factories.

“The mistreatment of trainees appears to be widespread,” said Shoichi Ibusuki, a human rights [and Zenkoku Ippan Tokyo General Union] lawyer based in Tokyo.

From across Asia, about 190,000 trainees — migrant workers in their late teens to early 30s — now toil in factories and farms in Japan. They have been brought to the country, in theory, to learn technical expertise under an international aid program started by the Japanese government in the 1990s.

For businesses, the government-sponsored trainee program has offered a loophole to hiring foreign workers. But with little legal protection, the indentured work force is exposed to substandard, sometimes even deadly, working conditions, critics say.

Government records show that at least 127 of the trainees have died since 2005 — or one of about every 2,600 trainees, which experts say is a high death rate for young people who must pass stringent physicals to enter the program. Many deaths involved strokes or heart failure that worker rights groups attribute to the strain of excessive labor.

The Justice Ministry found more than 400 cases of mistreatment of trainees at companies across Japan in 2009, including failing to pay legal wages and exposing trainees to dangerous work conditions. This month, labor inspectors in central Japan ruled that a 31-year-old Chinese trainee, Jiang Xiaodong, had died from heart failure induced by overwork.

Under pressure by human rights groups and a string of court cases, the government has begun to address some of the program’s worst abuses. The United Nations has urged Japan to scrap it altogether.

After one year of training, during which the migrant workers receive subsistence pay below the minimum wage, trainees are allowed to work for two more years in their area of expertise at legal wage levels. But interviews with labor experts and a dozen trainees indicate that the foreign workers seldom achieve those pay rates.

On paper, the promised pay still sounds alluring to the migrant workers. Many are from rural China, where per-capita disposable income can be as low as $750 a year. To secure a spot in the program, would-be trainees pay many times that amount in fees and deposits to local brokers, sometimes putting up their homes as collateral — which can be confiscated if trainees quit early or cause trouble.

The Japan International Training Cooperation Organization, or Jitco, which operates the program, said it was aware some companies had abused the system and that it was taking steps to crack down on the worst cases. The organization plans to ensure that “trainees receive legal protection, and that cases of fraud are eliminated,” Jitco said in a written response to questions.

Ms. Zhang says she paid $8,860 to a broker in her native Hebei Province for a spot in the program. She was assigned to a workshop run by Modex-Alpha, which assembles cellphones sold by Sharp and other electronics makers. Ms. Zhang said her employer demanded her passport and housed her in a cramped apartment with no heat, alongside five other trainees.

In her first year, Ms. Zhang worked eight-hour days and received $660 a month after various deductions, according to her court filing — about $3.77 an hour, or less than half the minimum wage level in Hiroshima. Moreover, all but $170 a month was forcibly withheld by the company as savings, and paid out only after Ms. Zhang pushed the company for the full amount, she said.

In her second year, her monthly wage rose to about $1,510 — or $7.91 an hour, according to her filing. That was still lower than the $8.56 minimum wage for the electronics industry in Hiroshima. And her employers withheld all but $836 a month for her accommodations and other expenses, according to her filing.

And as her wages went up, so did her hours, she said, to as many as 16 a day, five to six days a week. Modex-Alpha declined to comment on Ms. Zhang’s account, citing her lawsuit against the company.

As part of the government’s effort to clean up the program, beginning July 1, minimum wage and other labor protections have for the first time been applied to first-year workers. The government has also banned the confiscating of trainees’ passports.

But experts say it will be hard to change the program’s culture.

Economic strains are also a factor. Although big companies like Toyota and Mazda have moved much of their manufacturing to China to take advantage of low wages there, smaller businesses have found that impossible — and yet are still pressured to drive down costs.

“If these businesses hired Japanese workers, they would have to pay,” said Kimihiro Komatsu, a labor consultant in Hiroshima. “But trainees work for a bare minimum,” he said. “Japan can’t afford to stop.”

For almost three years, Catherine Lopez, 28, a trainee from Cebu, the Philippines, has worked up to 14 hours a day, sometimes six days a week, welding parts at a supplier for the Japanese carmaker Mazda. She receives as little as $1,574 a month, or $7.91 an hour — below the $8.83 minimum wage for auto workers in Hiroshima.

Ms. Lopez says Japanese managers at the supplier, Kajiyama Tekko, routinely hurl verbal abuses at her cohort of six trainees, telling them to follow orders or “swim back to the Philippines.”

“We came to Japan because we want to learn advanced technology,” Ms. Lopez said.

Yukari Takise, a manager at Kajiyama Tekko, denied the claims. “If they don’t like it here,” she said, “they can go home.”

But after inquiries by a reporter for The New York Times, a company that organizes the trainee program in Hiroshima, Ateta Japan, said it had advised Kajiyama Tekko to recalculate the wages it pays foreign trainees and ordered it to grant the vacation days owed to the trainees.

“They may have pushed the trainees too hard,” said Hideki Matsunishi, Ateta’s president. “But you must also feel sympathy for the companies, who are all struggling in this economy.”

http://www.nytimes.com/2010/07/21/business/global/21apprentice.html?_r=2&pagewanted=all

Immigration procedures face huge shakeup

As of July 1, there are big changes afoot for the laws governing foreign residency in Japan. Not since 1990, when the categories of residence increased from 18 to 27, has the Ministry of Justice’s Immigration Bureau undergone such a wholesale reordering of its operations.

What’s coming up? Aside from a number of smaller revisions, there will be an extension of the maximum length of permission to reside in Japan from three years to five, the abolishment of the re-entry stamp system required to leave the country and return, and — most significantly — the replacement of the Alien Registration Card issued by ward offices with a new Resident Card to be managed by the Immigration Bureau.

All the changes that were decided upon in this process are scheduled to be realized within three years of July 15, with the first already having taken effect on that date: the stipulation that the destination of someone deported from Japan shall not include countries proscribed by the United Nations Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.

Of all the amendments, the abolition of re-entry permits for stays outside Japan of less than a year is probably the least controversial. It should come as welcome relief to all those who, having gone through the ordeal of getting their status of residence updated, have then had to buy the stamp for re-entry and stand in two more lines to complete that process.

The end of the re-entry-stamp process and the extension of residence status to five years should help reduce the workload of the Immigration Bureau centers, the staff of which totals only around 3,500 members across Japan, with a single immigration officer currently reviewing upwards of 50 or even 100 applications a day. At the same time, however, the bureau will be taking over full responsibility for the registration of foreign residents — a mammoth task involving the processing and centralization of a huge amount of information currently held in ward offices around the country.

The introduction of this new system will mean a reorganization of the Immigration Bureau on a major scale, and the Ministry of Justice is carrying out a study on how to ensure the bureau’s Immigration Centers run smoothly as the changes are implemented. So far, this has only resulted in advance PR, including leaflets distributed at immigration centers and details of the changes listed on their Web site ( www.immi-moj.go.jp/english/newimmiact/newimmiact_english.html ).

The assumption of responsibility for the ID system for and registration of foreign residents raises big questions, the answers to which immigration lawyers that regularly deal with the Immigration Bureau seem as uncertain of as the bureau is itself.

The transfer of responsibility for “gaijin cards” from ward offices to the Justice Ministry’s Immigration Bureau also raises important questions about what happens when a new resident arrives in Japan. At the moment, new residents with valid visas simply pass through immigration and are issued with their Alien Registration Cards on presentation of the correct paperwork at their local ward office.

There are sure to be bumps in the road as the changes come online. Some NGOs, such as the Committee against Resident Alien Card System, are concerned about the IC chip that will be embedded in the Resident Card, and in particular the security and privacy issues this raises, as well as penalties for filing changes late. The Immigration Bureau says that the chip will record “all or part of the information printed on the card,” which will consist of the cardholder’s name, birth date, sex, nationality, address, photograph, signature and status of residence. No further information has been provided by the bureau about penalties, except that they will be leveled if changes in the above information, as well as marital status, are not reported within 14 days.

For now, it is hard to tell what the reality of the new system will mean until it comes into effect — for both foreign residents as well as the Immigration Bureau, which has a lot of preparation to do as it adjusts to its new role as the central overseer of the expatriate population over the next three years. However, as far as Japan’s foreign community is concerned, the new system’s success is likely to boil down to one question: Will the handover of responsibility to the Justice Ministry mean a more bureaucratic, enforcement- heavy approach — or will it make life here that little bit easier?

http://search.japantimes.co.jp/cgi-bin/fl20100720zg.html

Fewer Foreigners In Japan For First Time In Half-Century

The number of foreigners who officially call the Land of the Rising Sun home has fallen for the first time in nearly half a century, according to a report released by the Justice Ministry this week. In another blow to the country’s graying population and impending labor shortage, the number of registered foreign residents fell 31,000 to 2.186 million as of the end of the 2009, compared to the previous period. The last annual decline occurred in 1961.

The drop perhaps shouldn’t come as a shock in light of the financial crisis that sent Tokyo-based bankers packing and left swathes of corporate apartments in the posh and expatriate-friendly Roppongi neighborhood empty. But smaller urban areas saw the biggest declines, reflecting the reality of factory towns shedding thousands of jobs as the financial crisis turned into a full-blown economic maelstrom. Aichi prefecture, home to industrial heavyweights like Toyota Motor Corp. and Central Japan Railway Company, took the biggest hit, the number of foreigners dropping 13,600, or 6%, from the previous year to 215,000. Though it’s tough to pinpoint the exact reasons for foreigners quitting Japan, the ministry said fewer employment opportunities in manufacturing businesses certainly may have contributed.

Beyond economic factors, is Japan simply a tough haul for non-locals? Those that have stayed on now comprise just 1.71% of the overall Japanese population. That’s a relatively tiny slice, meaning that for some, it’s hard not to feel like an outsider looking in. While Japan has been quick to adapt some foreign customs, like eating hamburgers and playing baseball, into its cultural fabric, it’s been less successful at integrating residents from overseas, who often struggle to overcome language and culture barriers.

In an effort to combat its shrinking population, Japan eased its tough stance against migrant workers and allowed second- and third-generation people of Japanese origin to come to Japan as permanent workers. Many of the Japanese descendants based in South American countries like Brazil and Peru, where many Japanese nationals relocated to in the early 1900s in search of work, flocked to the country, but still, integration has been challenging.

There’s one group that’s bucked the trend: the Chinese, one of the few minority groups to grow its ranks in 2009. Overtaking the number of Korean residents, Chinese nationals became the largest minority group living in Japan in 2005. The group grew 25,140 over the last year and currently makes up nearly a third of the foreign population. On the opposite end of the spectrum, the number of Brazilian nationals, the third-largest minority group, saw the biggest fall, from 312,500 to 267,500.

If there are fewer legal foreign residents here, does that mean a drift into illegal immigration? Not according to estimates from the ministry. The number of illegal aliens, which has fallen by over 50% since 2005, continued to drop across the board last year, to 91,778 from 113,072 at the end of 2008, according to a March report released by the Justice Ministry.

http://blogs.wsj.com/japanrealtime/2010/07/08/fewer-foreigners-in-japan-for-first-time-in-half-century/

Japanese firms to boost hiring of foreigners by up to 50%

Major Japanese firms are planning to boost hiring of foreign nationals by up to 50 percent of their new recruits in fiscal 2011, officials of the companies said Tuesday.

Fast Retailing Co., the operator of the popular Uniqlo casual clothing chain, major convenience store chain Lawson Inc. and Rakuten Inc., which operates the largest Internet mall in Japan, are planning to recruit foreigners mainly from Asian countries including China, Taiwan and Malaysia, according to the officials.

As they are expanding global operations especially in emerging markets in Asia amid shrinking domestic sales, the three companies are accelerating operations to hire Asian graduates in their home countries and those studying at Japanese universities.

The firms hope to promote them to company executives in the future to lead their operations in the Asian markets, the officials said.

Fast Retailing said it is planning to hire about 300 foreigners, which accounts for about 50 percent of its planned new recruits for the year starting in April next year.

The company hopes to hire people who can work on its plan to open more shops in China and those who can serve as shop managers in Malaysia and Taiwan, where it plans to open its first outlets.

President Tadashi Yanai said it will further increase the hiring rate of foreign employees in fiscal 2012, with a plan for up to two-thirds of 1,000 planned new recruits to be foreigners.

Lawson is boosting recruitment of foreign students graduating from Japanese universities. It will continue hiring about 20-30 percent of its new recruits from such students from Asian countries, it said. It has already hired 66 foreign graduates in three years from fiscal 2008, which account for 20 percent of all the new recruits.

Rakuten said it will hire 150 foreigners among 600 new recruits it plans to employ in fiscal 2011.

It has agreed with China’s top Internet search engine Baidu Inc. to form a joint venture to launch an online mall in China in the second half of this year and hopes to utilize Chinese engineers to come up with services attracting customers in the Chinese market.

Other than the three companies, Panasonic Corp. has also been boosting its employment of foreigners. In fiscal 2011, it plans to increase the number of such employees to 1,100, up by 50 percent from the previous year, the company said, adding that the figure will account for 80 percent of the whole recruitment for the year.

http://mdn.mainichi.jp/mdnnews/business/news/20100706p2g00m0bu057000c.html