http://search.japantimes.co.jp/mail/nb20090401a1.html
Wednesday, April 1, 2009
Timing of general election could hinge on DPJ's reaction to move
By MASAMI ITO
Staff writer
Prime Minister Taro Aso ordered the government Tuesday to come up with a new set of economic measures, including the drafting of an extra budget, aimed at digging the economy out of recession.
Aso added that he may call an election before the enactment of the extra budget for fiscal 2009, depending on how the Democratic Party of Japan responds.
If the DPJ "refuses to approve the extra budget, I will make a decision depending on the situation at that time on whether to wait 60 days and make sure it is enacted or end the discussion and call for an election by presenting the extra budget as our proposal," Aso said.
The Lower House, where the Liberal Democratic Party-New Komeito bloc enjoys a majority, can override an Upper House rejection of the budget after 60 days.
Speaking at a news conference, Aso said that further economic steps are necessary to prevent the economy from hitting new lows, to secure employment to ease public anxiety and to invest in new fields so the economy can grow.
"I believe that people are demanding the mobilization of finances from the government," Aso said. "I will not be a slave to past circumstances and will do my best using bold ideas."
The package to come includes supporting the use of technology to increase solar power generation and production of environmentally friendly cars as well as promoting the country's strengths in "soft power" areas, such as animation, fashion and J-pop, to boost international business.
Aso added that it is necessary to look into cutting the inheritance and gift taxes to encourage the elderly to pass their assets on to their children before they die and stimulate consumption.
The scale of the package has not been decided yet, Aso said, but some in the ruling bloc have said more than ¥10 trillion will be necessary.
Aso's call for additional economic measures came just before his departure for the two-day Group of 20 financial summit this week in London. There, he is expected to introduce Japan's latest economic measures as well as stepsto aid developing countries, hoping to demonstrate tothe international community that Japan is taking action to overcome the recession.
The added steps are also an attempt to attract public support for the Aso Cabinet, which until recently has steadily been losing popularity since its inauguration last September.
Political analysts, however, called the added economic measures, including the drafting of an extra budget, only a "life-support system" keeping Aso in power.
Some political insiders expect Aso to wait at least until the extra budget passes the Diet before dissolving the Lower House. Many in the LDP have begun urging Aso to dissolve the Lower House and call a snap election once the extra budget is enacted.
"As I have repeatedly said, I am prioritizing economic measures over politics," Aso stressed. "I will decide when to dissolve the Lower House at an appropriate time."
Only last week the support rate for Aso and his Cabinet showed signs of recovery thanks to the political funding scandal that resulted in the arrest and indictment of DPJ President Ichiro Ozawa's chief secretary.
But critics speculate that the improvement is only temporary and that the support rate will drop again when the commotion over Ozawa and the DPJ fades.
The government is expected to submit the extra budget for fiscal 2009 with the economic measures before the end of the month for enactment by the close of the current ordinary Diet session on June 3.
Aso orders new stimulus, extra budget
International Labor Organization: 90 million new jobs needed
http://ph.news.yahoo.com/star/20090326/tph-international-labor-organization-90-541dfb4.html
Philstar.com - Friday, March 27MANILA, Philippines - Nearly 90 million jobs are needed to absorb the new entrants in the labor market and cut short the ongoing global financial and job crisis, the International Labor Organization (ILO) reported yesterday.
In a report titled the “Financial and Economic Crisis: A Decent Work Response,” the ILO said close to 90 million new jobs are needed up to 2010 to avoid a prolonged jobs gap.
ILO Director-General Juan Somavia said governments also need to implement a “global jobs pact” to prevent the severe job crisis that could lead to a massive increase in unemployment and poverty.
“If stimulus efforts are delayed, the jobs crisis will be prolonged and employment may only start to recover by 2011,” Somavia said.
In earlier financial crises, Somavia said the labor market recovered only 4 to 5 years after the economic recovery.
At this time, Somavia said, the international coordination to tackle the crisis is weak.
A study by the ILO among 32 member countries showed that stimulus plans stand on average at 1.7 percent.
The International Monetary Fund (IMF) earlier called for stimulus plans in the order of 2 percent of GDP (gross domestic product) in response to the crisis.
The ILO survey also found that the stimulus packages lean heavily toward financial bailouts and tax cuts instead of job creation and social protection and noted that on average, fiscal stimulus packages for the real economy are five times smaller than financial bailout packages.
“Only half of the countries examined have announced labor market initiatives and among those, the resources allocated to these measures are relatively limited,” said Raymond Torres, Director of the ILO’s Institute of Labor Studies.
The report also said that infrastructure programs do not adequately take into account the need to reinforce the existing capacity of businesses and skills supply – so that part of the infrastructure spending may result in higher prices, rather than higher production and jobs; some tax cuts will end in higher savings rather than higher demand, output and jobs; and little is done to help youth and other vulnerable groups.
Jobs in Lebanon
Meantime, thousands of jobs await Filipino professionals in Lebanon.
A group of Lebanese nationals yesterday said their country is in need of Filipino workers to fill the vacancies in the hotel, construction and other sectors.
Kader Al Jadid, Filipino-Lebanese Friendship community president, called on the Department of Labor and Employment (DOLE) to allow the deployment of other types of workers to Lebanon.
“Thousands of waiters, carpenters, technicians and other highly skilled workers are needed in Lebanon with the projected surge of foreign tourists,” Al Jadid said.
Al Jadid said Lebanese companies prefer Filipino workers because of their fluency in English and renowned brand of service and hospitality.
“DOLE should not let this opportunity pass for thousands of OFWs affected by the global economic slump,” he said.
But Labor Secretary Marianito Roque said the Philippine government will not resume the deployment of workers to Lebanon until the Lebanese government complies with the new hiring policy.
Roque said the Philippine government already submitted to the government of Lebanon the proposed policy that would ensure the protection of Filipino workers.
“We already submitted our proposal and if they are willing to comply with our conditions, we will resume deployment, but until then the ban stays,” he said.
Among others, Roque said the DOLE is demanding compliance with the $400 minimum monthly salary for Filipino household workers.
Al Jadid, however, urged DOLE to allow the deployment of professional workers while awaiting the approval on the hiring of household workers.
A majority of the Filipino workers currently employed in Lebanon are household workers.
DOLE imposed the deployment ban to Lebanon in 2006 after war erupted between Israeli and Hezbollah forces. Thousands of OFWs were repatriated but many opted to sneak back to Lebanon despite the ban. - By Mayen Jaymalin (Philstar News Service, www.philstar.com)
Hitachi, Sony freeze wages, to implement work-sharing
http://www.domain-b.com/economy/worldeconomy/20090320_hitachi.html
20 March 2009
Responding to the Japanese government's attempt to help companies retain employees during the current economic turmoil, Hitachi and Sony will freeze wages and introduce work sharing.
Hitachi said it had formed an agreement with its labour union to freeze its regular workers' salaries form April for a period of six months. Hitachi will also implement the Japanese work-sharing style concept under which employees will take one day of unpaid leave during weekdays said company officials.
Hitachi is expected to record a hefty net loss in fiscal 2008 ending March 31, taking this into view the labour union made considerable compromises at the annual spring wage negotiations, inorder to retain workforce in these trying times where companies are on a massive lay offs mood.
Similarly, Sony Corp also has agreed to freeze the monthly wages of its workers starting from April to sustain and improve its revenue, the financial reported daily Nikkei reported .
In a further move, Sony expects to cuts bonuses and salaries of executives. The labour staff's bonuses will be reduced from 6 months to 4 months and for managers the annual salary compensation will be reduced by 10 to 20 per cent and reduction in bonuses to the tune of 35 to 40 per cent bonus, said the paper.
Sony, too is expected to post its first loss in 14 years as the global recession coupled with a strong yen force it to revise its forecasts downwards for fiscal 2008 ending. (See: Sony braces up for recession; cuts jobs, closes factories)
The government too along with employers as well as labour union is forming a tri-party agreement to protect jobs. (See: Japan mulls work-sharing agreements to protect jobs)
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