Abstract
The Japanese coal-mining industry underwent adjustment around 1958 with the commencement of a full-scale energy revolution. Government coal policies, which greatly influenced the adjustment process, affected production and employment differently. On the one hand, coal production was maintained at an output level of 55 million tons per year until 1966. This output level was considered a form of ‘social insurance’ to ensure energy security. On the other hand, the number of employees in the coal mining industry decreased by 58 % between 1959 and 1965. This drastic step was unavoidable: to overcome the problems posed by high coal prices, the coal industry needed a rapid increase in productivity. While the adjustment in employment practices contributed positively toward a shift in labor from this declining industry to growth industries, it also had negative consequences including the unemployment of miners and decline of mining districts.
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- 1.
The production value of coal rose sharply in and after 1974 because of the sudden rise in coal prices due to the oil crisis .
- 2.
In terms of ‘merit (the comparison between the per calorie prices of heavy oil and coal),’ heavy oil had already been more economical since 1952 in the Tokyo-Yokohama area (since the first quarter of 1957 in the Osaka-Kōbe area).
- 3.
‘The Foreign Exchange and Foreign Trade Liberalization Program Outline’ drawn up in June 1960 stated that the liberalization of oil imports would be implemented in April 1963. However, ‘The Foreign Exchange and Foreign Trade Liberalization Promotion Plan’ of September 1961 moved implementation up implementation by 6 months.
- 4.
‘Industrial adjustment’ designates the shift of production factors such as capital and labor from declining industries to more competitive industries. Industrial adjustment policies aim for the smooth implementation of this shift.
- 5.
Sekiguchi and Horiuchi regarded the coal policies as policies of adjustment and aid, emphasizing the importance of revitalizing policies for coal-producing regions. However, they did not present concrete analysis (Sekiguchi and Horiuchi 1988).
- 6.
There had already been two coal industry rationalization plans that were eventually called off: the 3 year rationalization plan submitted by the Industrial Rationalization Committee in June 1950 and the 3 year plan submitted by the Coal Subcommittee of the Industrial Rationalization Committee in March 1952. The Industrial Rationalization Committee was established as an affiliate of the Ministry of International Trade and Industry in December 1949.
- 7.
The coal-mine rationalization of 1944 and the saltpan rationalization prior to that are precedents of the government’s purchase of inefficient coal mines (Sekitankōgyō Gōrika Jigyōdan, 1965).
- 8.
Since the government was concerned about the problem of unemployment among coal miners, a cabinet decision (May 1955) and cabinet approval (October 1956) were issued on ‘countermeasures for unemployment caused by the rationalization of the coal industry.’ A policy was thus established to implement public works and unemployment relief projects mainly in coal-mining regions. The 1956 cabinet approval, in particular, can be regarded as the first progressive attempt to support regions plagued by unemployment through countermeasures such as ‘wide-ranging job placement’ and ‘industrial development projects’ (Koyōsokushin Jigyōdan, 1971, p.21). However, the government’s aid for displaced miners was confined to the traditional framework of unemployment relief programs. The government did not try, for instance, to establish specific organizations or systems designed to support unemployed coal miners.
- 9.
In July 1959, the Fourth Subcommittee of the Energy Committee set up within the Industrial Rationalization Council estimated the price of C fuel oil for fiscal 1967 at 0.84 yen per thousand kilo calories. In October 1959, the Japan Coal Association in its ‘New Long-term Plan’ estimated the price of C fuel oil for fiscal 1963 at 0.83 yen per thousand kilo calories.
- 10.
In April 1959, the Economic Planning Agency set up the Energy Committee within the Economic Council in order to discuss a new long-term energy plan. In November 1959, however, the Economic Council was called on by the government to consult about the Income Doubling Plan . Therefore, it was decided that the energy problem would be discussed at both the Energy Committee and the Energy Subcommittee of the Government Sector Committee. The members of the Subcommittee were chosen from among the members of the Energy Committee. The Subcommittee drew up the energy plan on the basis of discussions in the Energy Committee.
- 11.
The Energy Committee calculated the minimum necessary production level of domestic coal required to compete with imported oil. Three cases were examined to determine the necessary production level for fiscal 1970. If the price of C fuel oil was 0.8 yen a thousand kilo calorie, the necessary coal production level was 46.3 million tons. If the price was 0.75 yen, the necessary production level was 37.7 million tons. If the price was 0.7 yen, the necessary production level was 31.3 million tons (NIRA, 2000, p.367).
- 12.
Because of the drop in oil prices and the Japan Coal Miners Union’s ‘Struggle for Policy Change,’ the government was forced to reconsider the ‘1200 Yen Price-Cut Policy .’ The extraordinary Cabinet meeting accordingly decided on 6 April 1962 to organize the Coal Inquiry Commission (led by Hiromi Arisawa) to investigate the modernization of the coal mining industry and the employment situation.
- 13.
With regard to the extra costs imposed on large coal consumers by the existing ‘ Long-Term Coal Trade,’ the equivalent value from the increase in the tariff on crude oil made in April 1962 was reimbursed through the tax refund system (general refund system).
- 14.
In the 40th ordinary session of the Diet of 1962, both Houses of the Diet passed the resolution that ‘a comprehensive energy policy should be established immediately and the role of oil and other energy sources should be clarified.’ Following this resolution, the Energy Task Force was set up within the Industrial Structure Investigation Council in May 1962. The Industrial Structure Investigation Council had been established as an affiliate organization of the Ministry of International Trade and Industry in April 1961 for the purpose of ‘investigating and discussing important issues concerning the industrial structure.’ The Energy Task Force was to function for 3 years until the end of March 1964. In April 1964, its role was taken on by the Industrial Structure Council, which was newly set up as an affiliate of the Ministry of International Trade and Industry. The Industrial Rationalization Council’s role was simultaneously assumed by the Industrial Structure Council. This marked the end of the historical role of the Industrial Rationalization Council, which had contributed significantly to the formation of industrial policy in postwar Japan.
- 15.
Faced with the aggravation of the coal problem, the government decided in the Cabinet meeting of 11 August 1964 to organize the Second Coal Inquiry Commission (led by Hiromi Arisawa).
- 16.
The Energy Task Force was set up as a section of the Industrial Structure Investigation Council . Although the latter was abolished, the former continued to function within the Industrial Structure Council. However, when the Energy Problem Investigation Council was newly established as an advisory body to the Ministry of International Trade and Industry in August 1965, the organization and roles of the Energy Task Force , together with those of the Nuclear Industry Task Force, were transferred to the Energy Problem Investigation Council . This Council was established to deal comprehensively with the following problems: the deepening dependence on energy imports, the utilization of nuclear power generation, environmental pollution and so forth.
- 17.
This estimate of unit production cost was based on the premise that the annual rates of increase of wages and prices were 7 and 1 %, respectively. Increases in productivity and economies of scale were also taken into consideration. However, these assumptions about the rates of wage and price rises were unrealistic. Between 1966 and 1970, wages and prices in fact increased at the average annual rates of 12.4 and 1.9 %, respectively. This calculation by the author takes regular wages of coal miners from a survey by the Japan Coal Association. Price increase calculations are based on the ‘overall wholesale price index’ presented in Kazushi Ōkawa et al. (1966).
- 18.
Although the relief plan had estimated the loss of major coal mining companies for fiscal 1967 at 9.9 billion yen, it actually came to 16.9 billion yen.
- 19.
Eventually, the government shouldered the coal companies’ debts of 85 billion yen through the Fourth Countermeasure Policy and the debts of 70 billion yen through the Fifth Countermeasure Policy.
- 20.
The Overseas Energy Situation Investigation Commission (led by Hiromi Arisawa) was dispatched overseas in May 1964. For 2 months, the members of the Commission investigated the energy problems and energy policies of European countries and the United States. They released an interim report on 25 August.
- 21.
Around 1967, debate surged over the restructuring of the coal-mining industry. Underlying the arguments was the recognition that the industry’s revitalization would be impossible unless the ‘traditional business system based on individual, private companies’ was altered. It was therefore urged that ‘coal-mining companies should be owned or administrated by the state, or there should be only one nationwide coal company or three companies corresponding to three regions.’ Although the debate became heated at its peak, changes of this kind were not brought to fruition. Regarding the debate on the industry’s restructuring, see (Sekitankōgyō Gōrikaseisakushi Kenkyūkai, 1990, pp. 166–187).
- 22.
In 1960, the labor productivity of a Japanese coal miner was only 52 % that of his German counterpart, 56 % that of his French counterpart and 65 % that of his Belgian counterpart (Tsūshō Sangyōshō 1964).
- 23.
The 1200 Yen Price-Cut Policy estimated the number of regular coal miners for fiscal 1963 at 175,670. The First Countermeasure Policy estimated the number of regular coal miners for the same year at 147,120. In reality, however, there were only 122,779 regular coal miners in fiscal 1963.
- 24.
In this connection, the New Miike Coal Miners’ Union’s affiliation with the National Coal Mining Labor Union, which was critical of the General Council of Trade Unions of Japan , was a symbolic event.
- 25.
Although the rate of membership in the Japan Coal Miners’ Union began rising again in 1968, that was long after the severest measures of employment adjustment had been undertaken.
- 26.
In addition to the countermeasures for unemployment and the revitalizing projects for coal mining regions, countermeasures for mining pollution were also reinforced. The Act on Security for Compensation for Damages Caused by Mining Pollution was enacted and the Mining Pollution Compensation Fund was established in 1963 (Sekitan Kōgai Jigyōdan, 1971).
- 27.
For case studies of reemployment situations in the Kaijima and Jōban Coal Mines, see Takagawa, Masamichi 2002, Takeda, Ryozō, 1963.
- 28.
It is based on a survey on the patterns of job-seeking by age conducted among coal workers of the Jōban Coal Mining Co. Ltd. shortly before the closure of the mine (Masaoka ed. 1998, p.203).
- 29.
For example, the results of the so-called wide-range job placement system for 1963 were assessed poorly: ‘Less than 20 % of the job seekers were reemployed through the wide-range system and the level of labor mobilization beyond the region represents only the tip of the iceberg (Kyūshū Keizai Chōsakyōkai, 1966, p. 271).’ It is also observed that ‘not many miners [were] responding to the labor mobilization policy (Fukuoka Ken, 1966, p. 101).’ The same tendency can be found in Hokkaidō. An investigation into the reemployment of displaced coal workers in the period between 1963 and 1976 revealed that the proportion of displaced coal workers who found new jobs in the regions of their local Public Employment Security Offices remained high. To move out of Hokkaidō, or to move to major cities in Hokkaidō out of local regions was not a major trend (Shirakashi 1982, pp. 783–784).
- 30.
Although the revitalization policy for coal mining regions constituted an important part of coal policy, it did not necessarily produce good results (Hirana, Ōhashi and Utsumi, 1998, p. 55–61).
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Chung, J.S. (2016). Adjustment Policies in the Japanese Coal Mining Industry During the Period of High Economic Growth – Production Volume Maintenance and Adjustments in Employment. In: Takeda, H. (eds) Micro-Performance During Postwar Japan’s High-Growth Era. Monograph Series of the Socio-Economic History Society, Japan. Springer, Singapore. https://doi.org/10.1007/978-981-10-0709-5_3
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DOI: https://doi.org/10.1007/978-981-10-0709-5_3
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