Transplanting Japanese Labor Relations

Solomon B. Levine and Makoto Ohtsu

The ANNALS of the American Academy of Political and Social Science, 1991, vol. 513, issue 1, 102-116

Abstract: This article addresses the issue of exportability of the Japanese model of labor relations consisting of lifetime employment, length-of-service wage and promotion, and enterprise unionism, which together are sometimes called three divine treasures. A quick examination of the model's applicability in Japan itself reveals that it is a myth rather than a reality. A survey of literature on the practices of Japanese-owned companies in Southeast Asia and North America indicates that there is a wide variation of employment practices and that the divine-treasures model is seldom followed in its entirety. Even if there is partial adoption of the model, it is difficult to determine if those seemingly Japanese features are actually imported from Japan or home grown. It is concluded, therefore, that Japanese companies are pragmatists in adapting to local conditions and that globalization of business tends to bring about convergence of different models into one that is most suitable under dynamically changing conditions.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:sae:anname:v:513:y:1991:i:1:p:102-116

DOI: 10.1177/0002716291513001009

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