The government tentatively decided Saturday to cut salaries of national public servants by about 10 percent to fund reconstruction programs in areas affected by the Great East Japan Earthquake, government sources said.
If implemented, the move would reduce the state’s personnel costs by about 300 billion yen. The plan would be presented to civil servant labor unions for negotiation after the Golden Week holiday period. Bills to revise laws concerning public servant reenumeration would be submitted to the Diet during the current ordinary session.
If the salary revision is made without the recommendation of the National Personnel Authority, it would be the first time since the authority was established in 1948. Usually, the authority recommends changes to public employees’ reenumeration to the Cabinet and the Diet every summer.
This system has served as an alternative to basic labor rights for national civil servants, which are limited by law. Along with the pay cut, the government plans to abolish this system in the current Diet session as part of reforms to the national civil servant system. In its place, state employees would gain the right to make labor agreements with the government through labor unions.
Regarding the salary cuts, Chief Cabinet Secretary Yukio Edano said at a press conference Saturday, “The government is discussing how salaries can be reduced.”
Most government officials are reportedly leaning toward smaller cuts for junior officials and larger reductions for more senior workers. But the salaries of senior officials would not be allowed to dip lower than those of junior officials. If a plan along these lines is adopted, the state may not be able to achieve a 10 percent reduction in personnel costs.
Salary cuts for government workers would likely make it easier to gain public support for tax hikes the government is considering to secure revenue to fund disaster reconstruction.
Diet members’ salaries would be cut by a total of 2.2 billion yen per year in a first supplementary budget for quake reconstruction that was passed Saturday in the House of Representatives. As the opposition parties have agreed to support the extra budget, it is expected to pass the House of Councillors on Monday.
The Democratic Party of Japan pledged in its election manifesto to cut central government personnel costs by 20 percent. To reach the goal, Prime Minister Naoto Kan proposed before the earthquake to cut civil servant salaries by a few percent across the board, but this was never realized.
Usually, public servant salaries are changed after the National Personnel Authority researches payment levels in the private sector and issues its recommendations.
The Yomiuri Shimbun , May. 1, 2011