An Analysis of Industrial Relations in the Japanese Information and Telecommunications Industry Using J. R. Commons’ “Menace of Competition” Theory

Using the Liberalization of Telecommunications and Changes in the Behavior of Trade Unions as Examples

Abstract

This paper uses J. R. Commons’s “Menace of Competition” framework to analyze the impact of the expansion of the market, which began with the liberalization of telecommunications in 1985, on the strategies of trade unions in Japan’s information and communications industry. Prior to deregulation, trade unions had a policy of organizing subcontracted workers and forming a single industry-wide trade union. However, after deregulation, they abandoned this policy and switched to a strategy of maintaining employment at the company level based on labor-management cooperation. This strategy contributed to maintaining employment for union members, but it also led to a deterioration in working conditions, decentralization of the negotiation structure, and a decline in the bargaining power of trade unions in the industry. The analysis shows the limitations of addressing the “Menace of Competition” with a labor-management cooperation approach, as well as the lack of institutional factors to curb the destabilization of labor.