This environment is said to reflect economic conditions beginning in the 1920s, when major corporations competing in the international marketplace began to accrue the same prestige that had traditionally been ascribed to the daimyō–retainer relationship of feudal Japan or government service in the Meiji Restoration.
By the 1960s, employment at a large prestigious company had become the goal of children of the new middle class, the pursuit of which required mobilization of family resources and great individual perseverance in order to achieve success in the fiercely competitive education system.
[1] Employees are expected to work hard and demonstrate loyalty to the firm, in exchange for some degree of job security and benefits, such as housing subsidies, good insurance, the use of recreation facilities, and bonuses and pensions.
[3] Leadership is not based on assertiveness or quick decision-making but on the ability to create consensus, taking into account the needs of subordinates.
This system rewards behavior demonstrating identification with the team effort, indicated by singing the company song, not taking all of one's vacation days, and sharing credit for accomplishments with the workgroup.
Thus, individuals are motivated to maintain wa (harmony) and participate in group activities, not only on the job but also in after-hours socializing (nomikai).
Although 64% of households in 1985 depended on wages or salaries for most of their income, most of these workers were employed by small and medium-sized firms that could not afford the benefits or achieve the successes of the large companies, despite the best intentions of owners.
Even in the large corporations, distinctions between permanent and temporary employees made many workers, often women, ineligible for benefits and promotions.
Traditions of entrepreneurship and of inheritance of the means of livelihood continued among merchants, artisans, farmers, and fishermen, still nearly 20% of the work force in 1985.
Whereas unemployment is low in Japan compared with other industrialized nations (less than 3% through the late 1980s), an estimated 400,000 day laborers share none of the security or affluence enjoyed by those employees with lifetime-employment benefits.
In the standard model, workers receive two fairly large bonuses as well as their regular salary, one mid-year and the other at year's end.
In the face of mounting international criticism of excessive working hours in Japan, in January 1989, public agencies began closing two Saturdays a month.
Japanese labor unions made reduced working hours an important part of their demands, and many larger firms responded positively.
[10] Japanese workers seek to invest and improve their company, while firms attempt to maintain a family atmosphere and look after employees.
Firms' attempts at prevention may include negotiating better deals with suppliers, requesting government subsidies, and eliminating overtime.
Leaving the workforce due to dismissal, family complications, or health-related issues can potentially diminish access to welfare benefits.
[20] Due to the high mandated costs on firms imposed by the Employees Health Insurance scheme, the incentive to provide increased non-mandatory welfare provisions is undermined.
These are commonly caused by heart attack and stroke, as well as suicide, brought on by high amounts of stress from working 60 hours or more per week.
Matsuri Takahashi, then 24, committed suicide on Christmas Day of 2015 after excessive overwork at Dentsu Inc., a major Japanese advertising agency.
[28] If Japanese companies wish to extend their employee's working hours, they must first conclude special treaties to get acceptance from the government, per Labor Standards Act No.36.
[38] The labour standard inspection office is now suffering from lack of manpower compared to the numbers of companies they need to investigate.