January 2023 2nd issue: Should the foreign technical intern trainee system be abolished?
The foreign technical intern trainee system is a system in which Japan accepts foreign technical intern trainees. This system was established in 1993. In recent years, this system has been criticized in Japan and overseas, saying that it violates human rights and is forced labor.
Purpose of the Foreign Technical Intern Trainee System
The purpose of the system, in a nutshell, is to cooperate in the development of human resources in developing countries. On the website of the Ministry of Health, Labor and Welfare, it says:
The Technical Intern Training Program for Foreigners aims to transfer skills, technology or knowledge to developing countries, etc., in order for Japan to fulfill its role as a developed country and develop in harmony with the international community. The purpose is to cooperate in "development of human resources" who are responsible for the economic development of developing countries.
Citation site:Foreign Technical Intern Training Program | Ministry of Health, Labor and Welfare
As a developed country, Japan aims to transfer skills, technology, or knowledge to developing countries, etc., and for that purpose, the purpose of the technical intern trainee system is to cooperate in "developing human resources." In other words, the purpose of the foreign technical intern trainee system is to "develop human resources" in developing countries, and Japan's role is to "learn" the trainees from developing countries.
Operation of the foreign technical intern trainee system
Then, how is the operation of the foreign technical intern trainee system? Is the system operating for the original purpose of "human resources development" in developing countries? Or, is the operation of the system deviating from its purpose?
Of course, there are quite a few companies that accept trainees who sincerely want to teach their skills, techniques, or knowledge in response to the expectations of trainees who seriously study in Japan and return to their home countries in the future to contribute to their country's economic development.
However, it is often pointed out that this system is used for "collecting cheap labor" rather than for "developing human resources" in developing countries. In other words, the reality of this system is to collect "cheap labor" from developing countries and make them work in Japan.
Apparently, there are many companies that accept technical intern trainees who see them as nothing more than a "labor force," and the problems that have arisen seem to be the cause of a series of criticisms both at home and abroad.
Issues with the Foreign Technical Intern Trainee System
What is the problem with the foreign technical intern trainee system? What is happening in Japan and abroad that it is pointed out as a hotbed of human rights violations and forced labor?
First, it is a violation of the Labor Standards Act. When having technical intern trainees work, you must comply with the Labor Standards Act. However, there continues to be a steady stream of businesses that commit illegal acts, such as making workers work illegally overtime or making them work for less than the minimum wage.
It seems that there are places where trainees take away their passports so that they do not run away. However, deprivation of passports is prohibited as a violation of human rights. However, there are quite a few trainees who disappear, so it may be a problem for the companies that accept them. Violence, abusive language, and sexual harassment have also been identified as problems suffered by trainees.
It has also been pointed out that many of the trainees are burdened with large amounts of debt in their home countries and are "thrown" into Japan as bonded laborers.
Issues with the Foreign Technical Intern Trainee System
It may not be an exaggeration to say that the problem with the foreign technical intern trainee system is that this system has become a “collection of cheap labor” rather than “development of human resources” in developing countries.
Many companies that want foreign trainees do not want to cooperate with developing countries in "human resource development", but simply want "cheap labor".
Companies that want "cheap labor" often have low wages. Some companies may not comply with the Labor Standards Act properly. If trainees work seriously with low wages, it will put downward pressure on Japanese wages, and there is a risk that illegal overtime will become the norm.
Merely using trainees as a "cheap labor force" will not contribute to the "development of human resources" in developing countries.
Should the foreign technical intern trainee system be abolished?
It may not be possible to say that the foreign technical intern trainee system contributes to its original purpose of “developing human resources” in developing countries. Should this system be abolished?
In many cases, major manufacturers already have factories and bases in developing countries. And we are hiring locally in that country. If necessary, we train locally hired personnel in Japan, or dispatch Japanese who can provide guidance to the local area for human resource development. If you want to contribute to the "development of human resources" in developing countries, that is enough, and if you want "cheap labor", you should make products in developing countries. For large companies, an internship system may not be necessary.
What about SMEs that do not have factories or bases in developing countries? For SMEs that rely on cheap labor from interns, the loss of this system will be a big blow. For them, regardless of whether or not they contribute to "human resources development" in developing countries, the loss of "cheap labor" is a problem.
However, trainees are human resources who should return to their home countries someday. Small businesses are not always supported. Moreover, if the transfer of skills, technology or knowledge to developing countries progresses and they become competitive, jobs for Japanese SMEs may disappear in the future.
Continuing this system simply because we want "cheap labor" is not a very good idea for Japan's reputation, both domestically and internationally, and for the future of SMEs. If you want to contribute to the "development of human resources" in developing countries, there is no need to stick to this system.
Some say that the purpose of this system is to “develop human resources” in developing countries, etc., but it is just a gimmick. Some have pointed out that the real ulterior purpose of the system is to make it possible to obtain If so, are small and medium-sized enterprises using this system profitable by obtaining "cheap labor"? Looking at the current situation of small and medium-sized enterprises that accept trainees, it seems that it is not so. Many SMEs are second- and third-tier subcontractors of large companies. Many of the small and medium-sized enterprises that accept interns are exposed to severe price reduction pressure from the original contractors, and profits are squeezed. However, if you dabble in "cheap labor", you will be pressured to lower prices by the prime contractor, so management will never be easy.
The foreign technical intern trainee system, which was said to be the "final trump card" for struggling subcontracting small and medium-sized enterprises, does not seem to be a savior for small and medium-sized enterprises. Rather, if the trainees go home and transfer skills, technology, or knowledge to developing countries, etc., it may be a situation that SMEs are strangling themselves.
It seems that there is a problem with the business structure and business model that makes the management of subcontractor SMEs difficult. Rethinking business models may be a more important issue for small and medium-sized business owners to consider than dealing with "cheap labor".
In any case, companies that are currently accepting interns should think about future measures, including the possibility that this system will change significantly in the future or even disappear.
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