Will the Lifting of the Ban on Secondary Employment Due to Workplace Reform Increase Income? What are the advantages and disadvantages for workers and companies?

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I started a blog called “The Baby Boomer Generation’s Miscellaneous Blog”(Dankai-sedai no garakutatyou:団塊世代の我楽多(がらくた)帳) in July 2018, about a year before I fully retired. More than six years have passed since then, and the number of articles has increased considerably.

So, in order to make them accessible to people who don’t understand Japanese, I decided to translate my past articles into English and publish them.

It may sound a bit exaggerated, but I would like to make this my life’s work.

It should be noted that haiku and waka (Japanese short fixed form poems) are quite difficult to translate into English, so some parts are written in Japanese.

If you are interested in haiku or waka and would like to know more, please read introductory or specialized books on haiku or waka written in English.

I also write many articles about the Japanese language. I would be happy if these inspire more people to want to learn Japanese.

my blog’s URL:団塊世代の我楽多(がらくた)帳 | 団塊世代が雑学や面白い話を発信しています

my X’s URL:団塊世代の我楽多帳(@historia49)さん / X

As part of efforts to realize a “100-million-sum active society,” “work style reform” has been advocated, and on June 29, 2018, the “Work Style Reform Bill” was enacted, with the revised law taking effect on April 1, 2019.

1.Background and Issues of Workplace Reform

(1) Objectives and Background

The purpose of the reform of work styles is to realize a “100-million-people-activate society. A “100-million-people-activating society” is “a society in which the population will remain at 100 million in 50 years’ time and everyone can play an active role at work, at home, and in the community” amid a declining birthrate and aging population.

The background is the “more-than-expected decline in the labor force”.

The following three measures are being considered to address the labor shortage

① Increase the number of workers: Target women and the elderly who have not yet participated in the labor market.

② Increase the birth rate to increase the number of future workers

③ Increase labor productivity

(2)Challenges

The following three issues must be addressed in order to realize reforms in the way we work.

① Elimination of long working hours

② Reduction of the disparity between regular employees and non-regular employees

③ Resolving the shortage of working population: promoting the elderly and women to work

2.Advantages and disadvantages of Lifting the Ban on Secondary (Dual) Jobs

In order to promote the “elimination of long working hours,” an increasing number of companies have lifted the ban on side jobs, which had previously been prohibited. Some bank employees have become “street performers” or “cram school teachers” or “soccer mediators” on the side.

The reasons behind the lifting of the ban on side jobs are “diversification of work styles” and “reduction of labor shortages.

(1)Advantages and disadvantages on the company side

①Advantages

Reduced “overtime” costs

Increased productivity

Improved quality of employees who gain skills, knowledge, and experience through side hustles

Information and contacts gained by employees who take second jobs can be used to expand business opportunities.

Improvement of employee retention rate

Increased possibility of voluntary job change for employees with low skills

②Disadvantages

Concerns about increased “combined work hours” and overwork due to side jobs

Concerns that employees will neglect their core business by devoting their energies to their side jobs

Concerns about talented employees changing jobs

Risk of leakage of confidential information

Conflict of interest

Concerns about violation of non-compete obligations

(2)Advantages and disadvantages on the worker side

① Advantages

Increase in income through side jobs (multiple jobs)

Ability to experiment and explore possibilities for future career changes

②Disadvantages

Decrease in “overtime wage” income due to reduced overtime hours

Concerns about illness and death from overwork due to increase in “combined working hours” from side jobs

3.My Thoughts on the Lifting of the Ban on Secondary Employment

Looking at it this way, the “lifting of the ban on side jobs (multiple jobs)” cannot be called a “rosy” measure. I think that workers should think carefully about this so that they do not easily get involved in “side jobs” and find themselves in a disastrous situation where neither of them succeeds.

I think it is desirable from the perspective of “work-life balance” for workers to reduce unnecessary long working hours, such as overtime work that is not necessary, to spend more time with their families or for personal development and hobbies.

However, I do not think it is desirable for people to take on unreasonable side jobs just because the decrease in overtime pay makes their lives harder or because they cannot pay their mortgages.

I believe that Japanese corporate executives should not only accumulate profits as retained earnings, but should also raise the “labor share” more so that workers can live well without overtime work.

For this purpose, if it is necessary to raise product prices or other measures, they should have the courage to do so. I believe that Konosuke Matsushita’s former “waterworks philosophy” is now an idea that is not appropriate for Japanese companies.


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