November is the campaign month against burden-shifting; labour bureaus to visit large firmsMaking sure that easier working at big firms does not strain their partners
On October 30, the Ministry of Health, Labour and Welfare announced that November will be the Campaign Month for Preventing Burden-Shifting onto Subcontractors. Working with the Small and Medium Enterprise Agency and the Japan Fair Trade Commission, the ministry will carry out intensive awareness activities, including displaying posters and requesting cooperation from industry-supervising ministries, prefectures, and labour and management organizations. Prefectural labour bureaus will also make company visits to large firms that may be causing such burden-shifting.
- 1. AwarenessAwareness-raising through posters and leaflets, updating the dedicated website on preventing burden-shifting, and internet advertising
- 2. CooperationRequesting cooperation from industry-supervising ministries, prefectures, and labour and management organizations
- 3. VisitsPrefectural labour bureaus intensively make requests, including company visits, to large firms that may be causing burden-shifting
Key points
- A one-month campaign in November, carried out by the MHLW together with the Small and Medium Enterprise Agency and the Japan Fair Trade Commission
- As an example of burden-shifting, the ministry notes cases where large firms' work-style reform efforts result in orders with very short lead times or sudden changes to specifications placed on smaller business partners without appropriate cost-sharing
- The ministry also notes burden-shifting arising from business practices such as private construction clients setting short construction periods, and shippers causing long and habitual waiting times for loading
- The main activities are: (1) awareness-raising through posters and leaflets, updating the dedicated website on preventing burden-shifting, and internet advertising; (2) requesting cooperation from industry-supervising ministries, prefectures, and labour and management organizations; and (3) intensive requests including company visits by prefectural labour bureaus to large firms of concern
What to do in practice
- Review how your company places orders, checking whether costs are appropriately borne when lead times are short or specifications change suddenly
- If you commission construction work or transport, check the actual construction periods set and the waiting times for loading
- If you are on the receiving side, find out which consultation desks you can turn to when unreasonable order conditions continue
When a large company tries to cut overtime, some of that work can be passed on to smaller partner firms, turning into unreasonable requests such as finish it by tomorrow or redo it right away. This is called burden-shifting. For one month in November, the government will raise awareness with posters and visit large firms that may be placing such strain on others.
- ○Applies: Orders with very short lead times without appropriate cost-sharing
- ○Applies: Sudden changes to specifications (instructions to redo the work)
- ○Applies: Short construction periods set by private construction clients
- ○Applies: Long and habitual waiting times for loading caused by shippers
Points
- When a big company lightens its own load, the strain can be pushed onto its smaller business partners
- Examples given include asking for delivery by tomorrow without paying more, and suddenly demanding that work be redone
- For one month in November, the government will raise awareness and visit firms of concern to call for improvement
What the words mean
- Burden-shifting
- When the load you have taken off your own shoulders ends up being pushed onto somewhere else, such as a business partner
- Very short lead time
- Ordering work with a deadline so short that it is hard to meet
- Waiting time for loading
- The time a truck is kept waiting to load or unload goods
- Ministry of Health, Labour and Welfare (MHLW): MHLW, November is the Campaign Month for Preventing Burden-Shifting onto Subcontractors
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.