Deregulation and the Work Environment for Taxi Drivers

Abstract

The Japanese government has introduced a set of labor reform bills, dubbed “Work Style Reform”, as one of the pillars of “Japan’s Plan for Dynamic Engagement of All Citizens”. While there are various problems concerning this plan, as put forth by the Abe administration, this report will focus on its effect on the current employment conditions of taxi workers and the problems they face by examining two factors, “labor conditions” and “deregulation.” The new limits placed on overtime work by the government’s labor reforms do not apply to vehicle workers, including taxi drivers. Furthermore, labor problems continue to mount. Multiple lawsuits have been filed over wage regulations and other employment problems in the industry. Despite the fact that taxi companies are subject to a multitude of regulations, the government’s deregulation initiatives since the 1990s have led to a decline in the income of taxi drivers due to severe competition facing the industry. Today, the rapid spread of “ride-sharing” services, which furthers the wave of deregulation that has occurred over the last couple of decades, poses a new threat to the industry. This report will assess how working conditions may change in the face of “Japan’s Plan for Dynamic Engagement of All Citizens” and explore possible solutions to combat emerging problems.