COE-RES Discussion Paper Series Center of Excellence Project The Normative Evaluation and Social Choice of Contemporary Economic Systems Graduate School of Economics and Institute of Economic Research Hitotsubashi University COE/RES Discussion Paper Series, No.235 February 2008 Corporate Mergers and Changes in Labor Management: A Case Study of Nippon Steel Hiroshi Sugiyama (Japan Business History Institute) Naka 2-1, Kunitachi, Tokyo 186-8603, Japan Phone: +81-42-580-9076 Fax: +81-42-580-9102 URL: http://www.econ.hit-u.ac.jp/~coe-res/index.htm E-mail:
[email protected] Corporate Mergers and Changes in Labor Management: A Case Study of Nippon Steel Hiroshi SUGIYAMA (Research Fellow, Japan Business History Institute)
[email protected] Abstract: Previous studies have explained the efficiency of large Japanese enterprises as based on Japanese-style wages and employment practices. So in past mergers of large Japanese enterprises, how were personnel problems handled? It is important to understand the characteristics of mergers in Japan and the measures used to deal with personnel problems during mergers. To respond to the above question, this paper examines four points: (1) the process and background of a merger; (2) strengthening of personnel management after a merger (foreman de-unionization); (3) the employment environment before and after a merger; and (4) changes in wage and qualification systems following the merger. I argue that because of the importance of personnel management for major Japanese companies, the union and management handled these topics with great care and energy. 1. Introduction The purpose of this article is to analyze changes in labor management practices, focusing on trends in labor-management relations, that resulted from the establishment of Nippon Steel (Shinnihon Seitetsu) through the 1970 merger of Yahata Steel (Yahata Seitetsu) and Fuji Steel (Fuji Seitetsu).