Research Paper on:
Labor Problems Japanese Joint Venture - Case Study

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issues that result from these, i.e., sub-issues are: * Johnscos labor shortage in Japan. Labor John was depending on as cheap labor were illegal aliens in Japan and forbidden by  law to hold jobs. * Furthermore, there are far fewer blue-collar workers in Japan because so many young people are going to college. * Labor cost in Japan. * Salaries  expatriate managers require given the cost of living in Tokyo. * Japanese customs preventing many women from achieving managerial status. * The contract with the union has provisions to give  union members first option for promotional opportunities. And, the union expects any nationals in Japan to be covered by the same contract. John needs to take a number of steps  immediately. First, he needs to consult with a labor attorney to determine if the provisions in the labor contract are legal, given the laws of Japan. If they are legal  and enforceable, John needs to have his legal representatives negotiate with the union to eliminate both clauses. John should have some leverage here. The company cannot afford to pay expatriates  the amount they would demand due to the very high cost of living in Tokyo. The consequence would be the company would have to withdraw from its joint venture agreement,  which would result in very expensive litigation in both Japan and the United States. The situation will cause the company to lose money, and, in turn, very possibly leave the  company in a position of having to reduce the workforce. Another step to take concurrently is to present the problem to the joint venture partner and seek assistance from that  company. It is a major automobile corporation and they will have a staff of attorneys to deal with issues and problems. The other issue that has to do more