It's past time for Japan to tackle overwork

By Quentin Webb

HONG KONG (Reuters Breakingviews) — It's past time for Japan to tackle overwork. The 2015 suicide of a 24-year-old who had recently joined Dentsu prompted the advertising giant's president to resign last week. The episode casts a fresh spotlight on the widespread problem of punishingly long hours.

For decades, workaholic Japan has struggled with "karoshi", a depressingly specific word for death by overwork-related illness or suicide. Research suggests staff at nearly a quarter of Japanese companies work dangerously hard, clocking up more than 80 hours of overtime in a month.

Extra work is capped at 45 hours per month, but that can be waived by agreement between bosses and typically tame unions. To make things worse, firms often push staff to under-report hours, and employees frequently skip vacations. Job roles in Japan are often vaguely defined, and managers often struggle to measure effectiveness in terms other than hours put in, so work tends to expand to fill the time available.

For Prime Minister Shinzo Abe, tackling counterproductive overwork is one plank in a wider push for structural reform. A "work style" task force is already drawing up an action plan. On working hours, it might suggest imposing more limits or at least stricter guidelines. Another worthwhile spur would be to prod listed companies into disclosing more about their workplace policies in reports.

Changing office culture can be difficult. Western investment banks underwent a similar bout of soul-searching about working juniors too hard, but anecdotally, many underlings are still grinding out the evenings and weekends.

There are grounds for optimism, though. In other areas Abe's administration has shaken up the status quo. Public outcry helps, and Japan's tight labour market gives workers a stronger hand. Meanwhile, companies seem to be waking up to the problem, with a recent Reuters poll finding a majority were reviewing working hours.

The benefits are worth fighting for. Wage-slaves tend to produce shoddy work after 14 hours at the office, so productivity would probably improve. More jobs could be created, helping broaden the workforce. And with more leisure time, people could spend more and have more children - both pressing economic issues. Work smarter, not harder.

On Twitter https://twitter.com/qtwebb

CONTEXT NEWS

- Tadashi Ishii said on Dec. 29 he would resign as president and chief executive of Dentsu at a January board meeting. The resignation follows the December 2015 suicide of a young employee at Japan's largest advertising agency.

- A week earlier, Dentsu unveiled various reforms to improve the working environment, including switching off office lights from 10 p.m. to 5 a.m.

- In October, Japan's government released its first white paper on "karoshi", or deaths due to overwork-related illness or suicide. Over the last year, staff at nearly 23 percent of companies surveyed for the research paper had worked more than 80 hours of overtime in a month.

- A recent Reuters poll of large and medium-sized non-financial companies in Japan found that more than half were reviewing work hours, with many looking to cut down on overtime.

- Prime Minister Shinzo Abe has put together a task force on "work style reform". This group is looking at ways to cut long working hours, expand the workforce, and improve conditions for irregular staff, and is due to produce an action plan by end of the financial year in March.

- Tokyo's new governor, Yuriko Koike, has ordered the capital's municipal employees to leave work by 8 p.m., the Daily Telegraph reported on Sept. 16, citing an interview with local television.