Message from the President Feb.2014

a monthly magazine for our employee Feb.2014

Outlook of future Dispatching Market

On January 29, 2014, discussion in the Labour Policy Council had finally reached to an agreement on report for amendment of Worker Dispatching Act. I cannot deny that that agreed report was retracted compared to the original plan as for a plan to reform the labor market. But I think that an agreement on a major outline “Removal of period restriction for the indefinite employed dispatch worker” was big forward step. It is because that legal clarification of fact that there is a style of work as an indefinite employed dispatch worker, i.e. as an full-time employee, among dispatch labor would may possibly become a precedents of “diversity work style as a full-time employee”. Meitec has been emphasizing such work style to the society as a “new work style” from past.

By the way, how would the upcoming law amendment would affect the dispatch labor market in future? And how it may change the worker dispatching businesses? I believe that "indefinite employment dispatch business" which Meitec carry out would expand because of aforementioned reasons. On the other hand, I think there is a possibility that conducting the general worker dispatch business would become further difficult.

In upcoming law amendment, partition between “Specified Worker Dispatching” and “General Worker Dispatching will be removed and it will be unified to “Worker Dispatching.” This means that if a worker dispatching company obtains a license, it can freely conduct both the definite employment worker dispatching (current General Worker Dispatching) and the indefinite employment worker dispatching (current Specified Worker Dispatching). Also, the period restriction on worker dispatching will be classified depend on the type of employment; “the indefinite employed dispatch worker = no period restriction” and “definite employed dispatch worker = 3 years limit.”

By the current law, dispatch period restriction was imposed depend on type of work. But in new law, it will be changed to a period restriction by person. Therefore, “definite employed dispatch worker = 3 years limit” may sound though like as a deregulation. But because the new law will be strictly obligate the dispatching company to change the status of its dispatched worker to a full-time employee (full-time employee of customer or full-time employee of dispatching company). I think this will impose quite burden to the general dispatching companies.

The general dispatching company had already started to focus on the temp-to-perm business and employment placement businesses in order to be prepared for the expected sift to the full-time employee.

Fortunately, Meitec Group has a subsidiary, Meiec Next, and already has constant position in placement business for engineers.

In our new mid-term management plan which will start from April, utilization of advantages from both the No.1 engineer staffing business in the industry and engineer specialized placement business as management asset of the Group will be one theme.

February, 2014