IndustriALL Global Union World Conference on ICT, Electrical & Electronics

Section 5 Promoting Sustainable Industrial Policy

June 12, 2015 Japanese Electrical Electronic & Information Union (JEIU)

About the JEIU Organization

Affiliated Unions 651

Union Members 571,326

2 JEIU Movement Philosophy

Basic Philosophy Beautiful Earth & Happy Life

Basic Objectives 1. Cultivate the joy of working and strive toward movements of creativity and vitality.

2. Love everyone and pursue happiness for everyone.

3. Create an emotionally rich society that is free, equal, and fair.

4. Join hands with people of the world and contribute to peace and prosperity. 3 1. Recognizing the Environment Surrounding the E&E Industry ’s Falling Birth Rate and Super-Aging Society

2040 2060 1990 (actual) 2010 (actual) (age) (age) (age) (age) Total population Total population Total population Total population 123,610,000 128,060,000 107,280,000 86,740,000 Ages 75 and over Ages 75 and over Ages 75 and over Ages 75 and over 2,336,000 (2.7%) 5,990,000 (5%) 1,419,000 (1.1%) 2,223,000 (2.1%)

Ages 65-74 Ages 65-74 Ages 65-74 Ages 65-74 8,940,000 (7%) Baby 1,529,000 (1.2%) 1,645,000 (1.5%) 1,128,000 (1.3%) boomers (born Ages 20-64 1947-1949) Ages 20-64 44,180,000 (51%) 76,100,000 Ages 20-64 Ages 20-64 (62%) 71,600,000 75,640,000 Born 2022 (59%) (62%) Born 2022 onward onward (Will change (Will depending on change future birth depending rates) Ages 0-19 Ages 0-19 Ages 0-19 on future Ages 0-19 32,580,000 2nd generation 22,930,000 14,670,00 birth 7,910,000 (26%) baby boomers (18%) 0 (14%) rates) (9%) (born 1971- 1974)

(x10,000 people) (x10,000 (x10,000 (x10,000 people) 65 & over pop. 1 1 people) 1 people) 1 Ages 20-64 pop. 5.1 2.5 1.7 1.2

Source: Ministry of Internal Affairs and Communications “Population Census” (persons whose ages are unknown are included proportionally), Institute of Population and Social Security Research “Population Projections for Japan (Jan. 2012): Birth, Death averages” (population for each year as of Oct. 1) • The birth rate is falling and the population is aging at a speed the world has never seen 5 美Beautiful し い 地 球Earth, ・ 幸 Happyせ な 暮 Life ら し Japanese全日本電機・電子・情報関連産業労働組合連合会 Electrical Electronic & Information Union Changes in Japan’s Ｗｏｒｋｆｏｒｃｅ Structure

(x 10,000 people) 6,000 34% ※ 37% 26% 5,000 Non- 20% regular 1,273 1,763 1,906 Part-time 4,000 881 49％

3,000

2,000 Arbeit 3,488 3,630 3,374 3,294 (temporary) Regular/ 21％ 1,000 full-time Dispatched workers 6％

0 Contract/entrusted workforce 1990年 2000年 2010年 2013年 20％

(Sources) Data until 2000 from Ministry of Internal Affairs and Communications "Labor Force Survey (Special Others 4％ Survey)” (February survey), 2005-2013 data from Ministry of Internal Affairs and Communications "Labor Force Survey (detailed tabulation)” (yearly average) long-term data • More than 1 in 3rd workers and employees are non- regular workers or employees. Beautiful Earth, Happy Life 6 Japanese Electrical Electronic & Information Union Current State of Energy: Power Source Ratios and Electricity Rate Trends in Japan

Hydro Coal Nuclear Oil and others LNG New energy, etc. \25

Electricity rates Electricity rates (yen/kWh) \20

Base load power source \15

\10

\5

Source: Produced using Agency for Natural Resources and Energy “Summary of Power Source Development” and other data. Electricity rates are total values for lighting and power demand.

Due to the Great East Japan Earthquake, nuclear power generation stopped after 2011. With the increase in thermal power generation (coal, oil, natural gas), electricity cost and greenhouse gas emissions have increased.

7 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union Exchange Rate Trends US Dollar/Yen

140

(yen)

← yen

130 Weak

120 ¥１２０ ¥１２０ 110

100

90

Strong Strong yen 80

→ ¥８０

70

99/01 99/05 99/09 00/01 00/05 00/09 01/01 01/05 01/09 02/01 02/05 02/09 03/01 03/05 03/09 04/01 04/05 04/09 05/01 05/05 05/09 06/01 06/05 06/09 07/01 07/05 07/09 08/01 08/05 08/09 09/01 09/05 09/09 10/01 10/05 10/09 11/01 11/05 11/09 12/01 12/05 12/09 13/01 13/05 13/09 14/01 14/05 14/09 15/01 15/05 15/09

Note: Monthly average closing price. Source: Reuters Japan

Sharp fluctuations in exchange rates have become a risk factor for management.

8 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union Electronics Companies’ Performance (13 leading companies)

(trillion yen) (hundred billion yen) 60 60 Global financial crisis Great East Japan 51.1 (Lehman Brothers collapse) Earthquake 44.6 41.4 41.8 42.5 40 39.6 39.8 38.4 40

22.0 22.3 19.6 20 20 16.2 11.4 11.1 8.2

0.4 0 0 2007 2008 2009 2010 2011 2012 2013 2014 Source: Company financial results 13 leading companies: , Hitachi, Toshiba, Fujitsu, NEC, Mitsubishi Electric, Sharp, Fuji Electric, reports Murata, Oki, Pioneer, Yaskawa Electric, Meidensha (including until FY2008) Growth and profitability are major issues.

9 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union Vision for the E&E Industry: Structural Transformation to Growth

Contribute to overseas markets A Japan that can be respected Stronger Japan brand power ① A test case for a livable society as a developed nation

with an aging population International competitiveness Attract Integration of overseas industries companies ② Rebuild social infrastructure Decline in cost Combination of and package construction competitiveness of technologies know-how manufacturing ・Roads ・Energy (Smart City) ・Telecom ③ ICT environment “like the air”

connecting various things

Today 2020 2030 Time axis Source: SOZO Kobo

10 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union 2. Policy Consultations with Political Parties/Government Agencies

美Beautiful し い 地 球Earth, ・ 幸 Happyせ な 暮 Life ら し Japanese全日本電機・電子・情報関連産業労働組合連合会 Electrical Electronic & Information Union JEIU Efforts to Achieve Policies and Programs

National Budget Schedule Policy Implementation Process

Political Parties Apr.-Jul. JEIU Government Ministries Policy August Budget requests Consultations submitted

Sep.-Nov. Budget formation

Budget December proposal

Jan.-Mar. Diet debate

Achieving Policies and Programs 12 Policy Consultations with Political Parties

Date: Wed., June 18, 2014

民DPJ Attendees: Policy Research Committee

主 Chair, Next Cabinet Minister of

党 Economy, Trade and Industry, Next Cabinet ICT Minister, others

Date: Wed., July 2, 2014 Komeito Attendees: Policy Research Council Chair, Deputy Secretary-General, Organizational Liaison Committee Chair, others

Date: Tues., June 17, 2014

LDP Attendees: Policy Research Council Acting Chairman, Labor Relations Bureau Chair, IT Strategy Council Chairman, others

13 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union Policy Consultations with Government Agencies

Date: Fri., June 20, 2014

METI Attendees: Commerce and Information Policy Bureau Director-

General, Deputy Director-General,

Information Policy Division Director, others

Date: Tues., September 9, 2014 Attendees: Policy Planning Director MHLW (labor representative), Labor-

Management Relations Director, others

Date: Fri., September 19, 2014

MIC Attendees: Vice-Minister for Policy Coordination, Global IT Strategy Bureau Director, Minister’s Secretariat, others 14 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union Policy Requests and Results (Examples included in national budget)

FY2014 Requests 2014 Revisions･ 2015 budget 1) Reconstruction of disaster areas’ economies through energy industry ¥3.3 billion 2) Improvements in power supply condition and optimization of demand ¥197 billion 3) Requests for more efficient use of energy ¥27.2 billion 4) Environmental improvements to revitalize the domestic economy ¥235.1 billion 5) Revitalization of domestic industry using electronics industry technologies ¥8.5 billion 6) Export promotion initiatives ¥17 billion 7) Policies to achieve work-life balance

8) Achieving fair and equal treatment for all workers 9) Environmental improvements so that everyone can work vibrantly ¥730.7 billion 10) Comprehensive reform of tax and social security

Total ¥1,218.8 billion 15 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union E&E Industry Labor-Management Cooperative Efforts

The Japan Electrical Manufacturers' Association

Japan Electronics and Information Technology Japan Information Technology Services Industry Industries Association Association

JEIU

Communications and Information network Japan Employers’ Federation of Electrical, Association of Japan Electronics & Information Industries Work with Diet Members toward Achieving Policies and Programs

COMMITTEE ON E&E INDUSTRY THAT CONTRIBUTES TO SOCIETY

JEIU ADVISORS

Akihiro Ohata Toshiyuki Kato Toshio Ishigami Hirofumi Hirano Wakako Yada House of House of Councilors House of Councilors House of Official organizational Representatives Representatives candidate 1

Yosuke Kondo（House of Representatives） Motohiro Ono（House of Councilors） Koichiro Genba （House of Representatives） Hiroyuki Konishi（House of Councilors） DIET MEMBERS （House of Representatives） Kazuya Shinba（House of Councilors） Yuichi Goto （House of Representatives） （House of Councilors） Shiori Yamao（House of Representatives） （House of Representatives） （House of Representatives） （House of Representatives） 16

17 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union JEIU Vision for Strengthening Policy and Program Efforts

POLICYMAKING POLICY IMPLEMENTATION ・Incorporate views from workplaces quickly and accurately ・Pipelines with each party and related ministries ・Propose by industry sector and by region ・Work with JEIU-supported and cooperating Diet members ・Views of consumers and workers

SHARING EVALUATION INFORMATION ・How much was budgeted? ・JEIU constituent organizations ・Did it lead to business growth or new and unions business creation? ・ Did it lead to protecting or expanding jobs? ・Union members ・Was the program improved from the viewpoint of consumers and workers? 18 Beautiful Earth, Happy Life Japanese Electrical Electronic & Information Union Thank you for your attention!

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