Under the work-style reform legislation enacted last year, large companies will be obliged to follow the principle of "equal work, equal pay" irrespective of the job statuses of their workers beginning in April 2020 and smaller ones a year later. Ahead of the onset of the legal obligations, major distribution service provider Nippon Express Co. plans to increase the wages of its workers on irregular contracts to be on par with their regular full-time counterparts who work under the same conditions. The firm's reported decision apparently reflects the particularly serious labor shortage that haunts the trucking and delivery industry, and other companies may follow suit. With a manpower shortage looming as a major obstacle to the operation of businesses, employers need to realize that improving the wages of both regular and irregular employees will be crucial to securing the labor they need.
The number of workers on irregular statuses such as part-timers, those on fixed-term contracts and temporary-dispatch workers has significantly increased since the 1990s as companies cut back on the hiring of regular full-time employees to reduce manpower expenses. Such workers have come to account for nearly 40 percent of the nation's labor force, but they earn roughly 60 percent of the pay of regular employees. The government has set a target of narrowing the gap to 80 percent as it promotes the equal work, equal pay principle as part of its labor reforms.
The guideline adopted by the government in December for implementation of the rule obliges employers to offer the same level of basic pay to both its regular and irregular workers if they engage in the same work and have equal capability, experience and performance. While it allows the companies to treat the workers differently if they differ in their skills, experience and so on, the guideline prohibits the firms from discriminating against irregular workers in terms of benefits such as holiday and late-night work allowances. It bans irrational disparities between regular and irregular workers, and holds the employers accountable if the workers demand an explanation for the gap.