Japan Private Sector Assessment
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Japan Private Sector Assessment A Preliminary Scoping Study The primary objective of the study is to provide a broad-based overview of the private sector in Japan as a stakeholder in combating modern slavery in the country PB The Mekong Club Japan Private Sector Assessment The Mekong Club Japan Private Sector Assessment 1 The Mekong Club 1. Contents 8.3.2. The Service Industry 29 8.3.3. Procurement 30 8.4. Banking Industry 31 The Mekong Club is a catalyst 2. Objectives of the Study 4 for change – engaging, inspiring 8.4.1. Mitsubishi UFJ Financial Group 31 and supporting the private 3. Definition of Terms 5 8.4.2. Japan Post Bank 31 sector to eradicate slavery from their business. Given that the 4. Demographic Overview & Key Social Trends 6 8.4.3. Mizuho Financial Group 31 majority of modern-day slavery 4.1. Population Distribution 6 exists in the private sector, these 8.4.4. Sumitomo Mitsui Financial Group 31 companies are ideally placed to 4.2. Social Indicators 7 8.4.5. Norinchukin Bank 31 help turn the tide of this global epidemic. 4.2.1. Human Development Index (HDI) 7 8.4.6. Resona Holdings 32 4.2.2. Poverty Rate 8 The only organisation of its kind, 8.4.7. Concordia Financial Group 32 The Mekong Club steers away 5. The Labour Force 9 from the approach taken by other 8.4.8. Fukuoka Financial Group 32 players in this space, which is to 5.1. Employment and Income 9 8.4.9. Chiba Bank 32 ‘name and shame’ companies – ousting bad behaviour or issues 5.1.1. Employment Distribution 9 8.4.10. Hokuhoku Financial Group 32 related to this subject. Instead, 5.1.2. Income 12 we believe in starting and ending 8.5. Construction 33 with collaboration. 5.2. Gender Gap 13 9. Modern Slavery and Human Trafficking 35 In fact, The Mekong Club 5.3. Comparative Minimum Wage 13 9.1. Overview 35 originally formed as a direct 5.4. Competitiveness 15 response to the growing number 9.2. USA Department of State “Trafficking in of companies looking to develop 6. Political Risk Assessment 17 strategies to address forced Persons” Report – June 2017 Update 36 labour risk through a professional 7. The Private Sector 18 9.2.1. General 36 forum. Divided into industry- specific working groups, these 7.1. Overview 18 9.3. Commercial sexual exploitation & Sex networks meet regularly to 7.2. Key Players in the Private Sector 19 learn, share best practices, trafficking 36 and network with other like- 7.2.1. Resources 19 9.3.1. The Size of the Entertainment minded professionals. Member companies also work together 7.3. Transparency 19 Industry 37 to achieve an annual deliverable 8. The Mekong Club Target Sectors 21 which will work towards 9.3.2. Types of Jobs 38 producing tangible results in the 8.1. Wholesale and Retail 21 fight against forced labour. 9.4. TITP (Technical Intern Training Program) 38 8.1.1. General 21 10. Attitude to Migration 40 8.2. Manufacturing 25 8.2.1. Local contribution 25 8.2.2. International Reach 26 8.3. Hospitality & the Service Industry 28 8.3.1. Hospitality 28 2 The Mekong Club Japan Private Sector Assessment The Mekong Club Japan Private Sector Assessment 3 2. Objectives of the Study 3. Definition of Terms The primary objective of the study is to provide a broad- Throughout the report the following definitions will apply to the use of the terms based overview of the private sector as a stakeholder in human trafficking, forced labour, bonded labour and contract slavery, as specified by combating modern slavery in the country. More specifically The Mekong Club. the study aims to generate a knowledge base from which The Mekong Club can approach the private sector in order FORCED BONDED LABOUR HUMAN TRAFFICKING to create awareness and offer cooperative solutions for the LABOUR AND CONTRACT SLAVERY eradication of modern slavery in corporate supply chains; the core focus of the Mekong Club’s mission. An act (1) carried out by a All work or service which is Bonded labour begins when a The following secondary objectives specify the details of third party, through different extracted from any person worker borrows money from means (2), for the purpose of underthe menace of any an employer and commits the data that need to be gathered in order to fulfil the exploitation (3). penalty and for which the themselves to work scope of the study: person has not offered for the employer in return. For children under age 18 it is themselves voluntarily. sufficient to demonstrate Contract slavery involves the act of moving a child for deceiving or illegal contracts the purpose of exploitation. signed by victims who cannot understand them,and used to justify forced labour. 1. Act of: Threat of penalty Common features of Bonded • Give an overview of the demographic landscape • Recruitment • Physical and/or sexual Labour and economic conditions in Japan • Transportation violence. • Transfer • Imprisonment or physical • The employer manipulates • Harbouring confinement. interest rates or charges • Detail the characteristics of the labour force in • Receipt • Withholding of wages, excessive rates. Japan by looking at factors such as size, average unreasonable fees or financial • The employer imposes income, distribution, key issues 2. By means of: penalties. high charges for • Threat • Withholding of identity food, accommodation, • Provide a detailed analysis of the private sector • Force or coercion documents. transportation, or tools. • Abduction • Unfair dismissal or exclusion • The employer charges in terms of size of industries, number of workers • Fraud from future employment. workers for shortfalls in and key players • Deception • Deprivation of food or shelter. business output or days • Abuse of power • Exclusion from community, missed due to worker • Provide in-depth reports on the Banking/finance, • Abuse of vulnerability social life or denunciation to sickness. Manufacturing, Construction, Agriculture and community/family. 3. For the purpose of: • Intimidation and other threats. Common features of Contract Retail and hospitality industries • Exploitation Slavery • Slavery or similar practices Lack of Valid Consent • Contracts are in a language • Identify the current state of modern slavery in • Servitude • Worker deceived about the the victim does not Japan • Prostitution wages they would receive. understand. • Removal of organs • Worker cannot leave • Contracts are presented to • Forced labour and service employment as they must victims who cannot read. remain for an undefined period • Victim is told fines and to repay debts to employer. penalties will follow if he • Worker made to work by breaks the contract. family. • Deception or fraud during recruitment stages. HUMAN TRAFFICKING FORCED LABOUR BONDED LABOUR emphasizes the movement of is often a consequence victims of human trafficking and CONTRACT SLAVERY emphasizes are two forms of forced labour the exploitative condition the victim suffers 4 The Mekong Club Japan Private Sector Assessment The Mekong Club Japan Private Sector Assessment 5 Currently the population is divided as follows: the youth (0-14) constitutes 12.7% of the 4. Demographic Overview & Key Social Trends population, the economically active (15-59) 53.7% of the population and the elderly (60+) 33.6 % of the population. Projections indicate that the economically active population can decrease to as little as 4.1. Population Distribution 51% by 2050, putting more pressure on workers to support dependents. The total population of Japan was estimated at 126.72 million in October 2017. According to the 6 Japan Statistical Yearbook 2017, Japan ranked eleventh in the world in terms of size and made Japan Population Pyramid 2016 up 1.7 percent of the total world population.2 Population density measured at 340.8 persons per square kilometre. 100+ Male 0.0% 0.0% Female 0.1% 0.3% The population is skewed towards females which make up 51.35% of the total population. 95-99 90-94 0.3% 0.9% According to the World Bank Japan’s rural population is estimated at 6% in 2016.3 85-89 .9% 1.7% 80-84 1.6% 2.4% Population Distribution by Gender and location 2016 75-79 2.3% 2.9% 70-74 3.1% 3.5% 65-69 3.5% 3.8% Total 126,720,000 60-64 3.1% 3.2% Male 61,660,000 (48.65%) 55-59 2.9% 3.0% 50-54 3.2% 3.2% Female 65,060,000 (51.35%) 45-49 3.7% 3.6% 40-44 3.7% 3.7% Rural 6% 35-39 3.2% 3.1% 30-34 2.9% 2.8% 25-29 2.7% 2.5% A significant part of the population is concentrated in big cities, with 12 cities registering a 20-24 2.4% 2.3% population of one million or more. The total population of the 12 cities are estimated at 29 million 15-19 2.4% 2.3% (23.2% of national population). 10-14 2.2% 2.1% 5-9 2.2% 2.1% 0-4 2.1% 2.0% 4 Population of Major Cities (Thousands) 10% 8% 6% 4% 2% 0% 2% 4% 6% 8% 10% 2010 2015 2010 2015 Tokyo (23 cities) 8,946 9,273 Kobe City 1,544 1,537 4.2. Social Indicators Yokohama City 3,689 3,725 Kawasaki City 1,426 1,475 4.2.1. Human Development Index (HDI) Osaka City 2,665 2,691 Kyoto City 1,474 1,475 Nagoya City 2,264 2,296 Saitama City 1,222 1,264 According to the UNDP Human Development Report of 20167, “Japan’s HDI value for 2015 is 0.903 which put the country in the very high human development category—positioning it at 17 out of 188 Sapporo City 1,914 1,952 Hiroshima City 1,174 1,194 countries and territories.” The Human Development Index (HDI) is a statistic measuring human Fukuoka City 1,464 1,539 Sendai City 1,046 1,082 development based on life expectancy, education, and per capita income indicators.8 Japan ranks the highest on Human Development in Asia.