Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Foreign workers feel the pain of 'corona job cuts' in Japan

Published 05/04/2020, 08:54 PM
Updated 05/04/2020, 08:55 PM
© Reuters. Union organizer Akai Jimbu protests the firing of Japanese-Brazilian Kaori Nakao wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, in front of the factory she used to work at, while a man tries to stop their protest, in Kiyosu

By Sakura Murakami

TSU, Japan (Reuters) - Eight years after arriving from Brazil, Rennan Yamashita sat in a government office in central Japan, filling out forms for unemployment insurance after losing his job for the ninth or 10th time - he has lost count.

Some weeks earlier, he was laid off from his job at a car parts factory. He only held that job for four months.

"If they need you, they hire you; if they don't need you, they'll fire you. It's simple like that," said Yamashita, 31.

The coronavirus pandemic has hit Japan's economy hard and many factories, including those of carmakers, are scaling back production.

Foreign workers are particularly vulnerable, with a weaker support network and language barriers that prevent them from seeking government help.

Union groups, labour lawyers and nonprofit organisations say foreign workers such as Yamashita are the first to lose jobs in "corona cuts", which they fear may expand to the kind of mass layoffs seen in the 2008 financial crisis.

Last month, the Japan Center for Economic Research estimated that if Japan's GDP contracted by 25 percent this year, the unemployment rate would reach 5% and about 2 million people could lose their jobs.

In March and April, a labour organisation based in Mie, a manufacturing centre about 300km west of Tokyo, received 400 consultations from labourers who were affected by the coronavirus. About 330 were foreign workers.

"Foreign workers on short-term contracts are laid off first," because they're easier to fire, Union Mie organiser Akai Jimbu said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Last year, 34.5 percent of foreign employees in Mie were temporary workers, compared with the national average of 2.5 percent. "It's almost like they're hired so that they can be fired when the going gets tough," Jimbu said. "They're just a spare bolt in the eyes of the employer."

'FIRST TO GO'

Japan has become increasingly reliant on foreign labour. With a third of its population over 65 and a smaller working population, the government has eased some immigration restrictions.

More than 1.6 million foreign workers supported the Japanese economy as of October 2019 – a four-fold increase from 2008.

A labour ministry official told Reuters the ministry does not officially track the number of foreign workers laid off because it provides "support to all workers" regardless of their nationality.

Still, the government recently allocated 370 million yen ($3.46 million) to improve multilingual support for foreigners at unemployment offices and online.

But most foreign workers don't turn to the government for help. While Union Mie handled hundreds of consultations this year through mid-April, the local labour ministry office saw only seven.

Kaori Nakao, a Japanese-Brazilian woman, sought help from the union when her employer laid her off from a car component factory at the end of March.

The company told her she was being fired because of coronavirus-related production cuts. Nakao, 38, was also ordered to leave her company apartment.

Pregnant with her fourth child and with no savings, she asked Union Mie for help.

Last month, union members and Nakao protested outside her employer's office and the Mitsubishi Heavy Industries Thermal Systems factory where she worked.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Mitsubishi Heavy Industries Thermal Systems declined to comment because it did not employ Nakao.

"I just want to work," Nakao said. "I have zero money and I can't even buy food for my children."

Yamashita, who is still looking for jobs, said he had found an open position at another car parts factory a few weeks ago.

The contract was only for three months – maybe even less. Still, Yamashita said, it was something. He interviewed for the job, and was looking forward to a respite from searching.

But then he got a call. The position wasn't available anymore.

"We are the first to go," he says of foreigners working in Japan. "I already know about that."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.