In turn, the Trade Union Law of 1945 was enacted, granting workers in private industries the right to organize, to collectively bargain, and to strike. In addition, the law forbid employees from committing unfair labor practices, permitted democratic proceedings within all union activities, and instituted the labor relations commission. With the establishment of these new democratic entitlements and principles, there were drastic improvements in real wages and working conditions. Additionally, labor unions managed to persuade businesses to accept a lifetime employment system, in which employees agreed to work for a company until he reached his retirement age, and in exchange, the employer would not fire his employee even during a depression. At first, Japanese management was hesitant to accept the system, but workers took advantage of their newly granted democratic rights, going on strike. Fearing that prolonged striking would drive them into bankruptcy, companies agreed to the terms entailed in the lifetime employment system. With the acceptance of this new system came the ingrained relationship between labor unions and management. As a result, working conditions improved and wages increased, which in turn expanded the domestic consumption markets and facilitated the development of the Japanese
In turn, the Trade Union Law of 1945 was enacted, granting workers in private industries the right to organize, to collectively bargain, and to strike. In addition, the law forbid employees from committing unfair labor practices, permitted democratic proceedings within all union activities, and instituted the labor relations commission. With the establishment of these new democratic entitlements and principles, there were drastic improvements in real wages and working conditions. Additionally, labor unions managed to persuade businesses to accept a lifetime employment system, in which employees agreed to work for a company until he reached his retirement age, and in exchange, the employer would not fire his employee even during a depression. At first, Japanese management was hesitant to accept the system, but workers took advantage of their newly granted democratic rights, going on strike. Fearing that prolonged striking would drive them into bankruptcy, companies agreed to the terms entailed in the lifetime employment system. With the acceptance of this new system came the ingrained relationship between labor unions and management. As a result, working conditions improved and wages increased, which in turn expanded the domestic consumption markets and facilitated the development of the Japanese