Abstract
In the 1990s, major Japanese iron and steel companies were forced to conduct large-scale rationalization due to declining steel material prices in the wake of ongoing globalization. A large proportion of workers in Japanese iron and steel industry are employed by subcontractors. Although these workers work in major steelworks, they are actually employed by another company that conducts continuous business with the steelmaker. These workers are known as Shagai-ko. Shagai-ko previously handled simple, stained parts in the iron and steel production process. Now they work mainly with down stream of steel-making process, especially around the rolling mill. This paper clarifies the following three points: First, the role of Shagai-ko has become more important quantitatively, but has changed little in terms of quality. Secondly, their working environment and work conditions have not improved. Thirdly, as more Shagai-ko are being brought into the steelworks, more rationalization is taking place within the subcontractors themselves, just like the steel companies. Consequently, more subcontractors are being formed and downsized by forcing fewer workers to do plural tasks. Given this rationalization, the gap between wages and working hours among subcontractors is widening.
