Japan Minister Appeased by Change in Airline Hiring Plan

Transportation Minister Shizuka Kamei on Tuesday withdrew his objections to Japan Air Lines’ hiring of contract flight attendants after JAL submitted a new plan to raise the level of cut-rate wages it will pay the new employees.

Kamei’s rejection in August of JAL’s original plan to hire what are called “part-timers” had stirred a major flap over government intervention in private business. In Japan, part-time usually means working as many hours as full-status employees but with lower pay and no guarantee of continual employment.

Kamei’s reversal Tuesday was expected to bolster the company’s movement toward reducing full-status employees to pare wages that are now the highest in the advanced industrialized world, largely because of yen appreciation.

The minister told a news conference that both JAL and Japan Air Systems have submitted new plans to raise wages for the contract workers to 75% of the rates that the airlines pay full-status employees, instead of only 50%. The two airlines also agreed to offer the contract workers the same insurance benefits that regular employees receive in case of air accidents.

“I highly evaluate the new plans, because they mean the airlines have followed our guidance,” Kamei said.

Kamei’s announcement, nonetheless, was seen as a victory for business over government.

In August, Kamei claimed the part-timers would disrupt unity among crew members in dealing with crises that might occur in flight. But except for slightly higher pay and the insurance benefits, neither of the airlines offered major changes from their initial plans.

Both airlines’ original plans limited the part-timers to employment for three years in principle, for example, and spokespersons for both said that had not changed.

As a result of the announcement, the third Japanese airline, All Nippon Airways, also was expected to start hiring contract flight attendants.

All of the attendants involved are female.

Already, 20% of workers in the nation’s labor force, according to the Labor Ministry, are hired on a “part-time” basis. Forty percent of all female workers lack full status as company employees.

Labor unions normally exclude part-timers from membership.

At JAL, an average attendant’s wage of $80,000 year is about twice as high as pay for attendants on U.S. airlines, according to company officials.

In its original plan, JAL set part-timers’ annual wage at $20,000, or half the starting salary of a new full-status employee. Despite the low pay, 2,500 women applied for 100 cabin attendant posts that JAL was offering when Kamei intervened.

Akira Terao of Japan Air Systems said the airline had not yet decided how much it will pay its new attendants. She did say, however, that JAS would hire only “part-timers” beginning next year.

“In the past, the airplane was a high-class means of transportation. Now, it is a means of transportation for the general masses. . . . The path of the future will be lower prices and simplified service,” Terao said. “I don’t think you have to pay such high salaries.”