Disparities between regular and non-regular workers in Japan have become a prominent issue in recent years. One solution in the spotlight is pay equity—equal pay for equal work—but there has been little progress on this front. We studied the situation at the FCO-OP consumer cooperative society Fukuoka Japan (FCO-OP), which has successfully implemented pay equity. Our research found that FCO-OP had made considerable progress on equal pay principle. This initiative applies to over 70% of the overall organization’s workforce, and none of the employees is on a fixed-term contract. Comparisons of hourly rates for workers under different forms of employment also show the progress that has been made. From the very start, the managers thought they should promote pay equity to redress gaps between regular and non-regular workers. They also sought to reduce the portion of wages based on individual characteristics, such as age-based pay, as much as possible. Meanwhile, the labor unions strongly supported wages based on individual characteristics but decided to support the move to pay equity in order to resolve the disparity between regular and contract employees, as they viewed this as an important element in livelihood security. Further, some part-time union members opposed the pay equity measures because they did not want to leave their fellow workers behind and become managers, preferred to retain their status as dependents for tax purposes, or opposed being subject to performance reviews. After heated discussions in the workplace, they agreed to accept the measures, given the institutionalization of pay rises. We also found that encouraging executives to use their imagination to understand those in a different position through workplace discussions was important for consensus building.
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