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The seniority-wage system can also be seen in Japanese government. Japanese parliament seats are usually filled with the older members from each party. After the economic bubble burst in Japan in the late 1980s and the venture capital (dot-com) shock of the 1990s, the seniority-wage system has become less popular amongst business, as they could ...
Vertical seniority rules nevertheless prevail between teachers based on academic rank and experience. [20] The senpai–kōhai system also prevails in Japanese businesses. The social environment in Japanese businesses is regulated by two standards: the system of superiority and the system of permanent employment. The status, salary, and ...
The maximum pay period is one month, which is the standard pay period throughout Japan, although bonuses and other supplemental payments such as commuter allowance may be paid at longer intervals. Salaries at Japanese companies are based on seniority, and are adjusted for the needs of employees, such as if they have a family and children.
At the national level, Japan is having troubles financing the pension system, and the future of the pension system was a major topic in the 2005 House of Representatives election. At the corporate level, problems include growing personnel costs and the shortage of senior positions. In most Japanese companies, salaries rise with worker age.
Even with the seniority system, women were still vital to the work of many companies. In Tokyo, to attract more women, a semi-managerial track was adopted to work hand in hand with the seniority system. This track offered women a chance for advancement based on performance, rather than lifetime employment.
Many both in and outside Japan share an image of the Japanese work environment that is based on a "simultaneous recruiting of new graduates" (新卒一括採用, Shinsotsu-Ikkatsu-Saiyō) and "lifetime-employment" (終身雇用, Shūshin-Koyō) model used by large companies as well as a reputation of long work-hours and strong devotion to one's company.
Blue collar workers (Nikutai-rōdō-sha (肉体労働者)) in Japan encompass many different types of manual labor jobs, including factory work, construction, and agriculture. Blue-collar workers make up a very large portion of the labor force in Japan, with 30.1% of employed people ages 15 and over working as "craftsman, mining, manufacturing ...
This type is the main reason for the negative reputation of Shukko, because of its effect on personnel expenses. The Nenko System (seniority-based compensation) is the opposite of the merit-based wage system. Because pay is based solely on seniority, employees' salaries may not correspond with their job performance or ability.