5 The data of general and special accounts are referred from Budget Reference Documents according to Article 28 of the Fiscal Finance Act. The net total was ¥14,382 billion in 1970, ¥253,643 billion in 2023.(3) Principle of Balancing Working Conditions with those in the Private Sector Due to restrictions on basic labor rights, public servants are unable to conclude collective agreements on working conditions through collective bargaining. To compensate, the NPA issues recommendations based on the principle of equalizing working conditions with those in the private sector. The NPA conducts a survey of remuneration in the public and private sectors, and then compares remuneration between the public and private sectors among people of the same rank, location, education, age, etc., in accordance with the principles of compensation based on duties and responsibilities, rather than simply comparing averages.(4) Strict control of personnel expenses Since the postwar public service system emphasized public understanding and acceptance, personnel expenses have been kept under strict control by the government and public opinion. As shown in Figure 1, personnel expenses for national public employees reached 10 trillion yen in FY2000, but have since been halved by FY2023 due to the incorporation of national universities, the privatization of Japan Post, and the total personnel cost reforms described below. The net value of the general and special accounts has increased about 18 times in the 53 years since FY1970, while personnel expenses have increased about 3.5 times.5Source: National Personnel Authority, Introduction to National Public Service System in Japan, 2023, p.21 The constitutionality of the restrictions on basic labor rights in the National Public Service Act has long been disputed in court, but the Supreme Court’s 1973 decision declaring the restrictions constitutional is now the prevailing view. According to the ruling, public employees are guaranteed basic labor rights under Article 28 of the Constitution, but the restrictions are necessary and unavoidable because of their special status, the public nature of their services, the principles of determining working conditions by law, the absence of market restrictions in the public sector, and the existence of NPA recommendations as compensatory measures. This principle of balance has been considered a reasonable method to attract human resources in the labor market, because if working conditions were far worse than in the private sector, people would not become public employees. This has also been important for gaining public understanding and acceptance of the working conditions of national public employees. In general, the NPA submits a recommendation and a report to both the Cabinet and the Diet every August. The Cabinet considers whether these recommendations should be implemented in consideration of the financial situation and other factors, and if so, prepares an implementation bill. The Diet deliberates and decides whether to pass this bill. In short, being set by law, the working conditions and personnel expenses for public employees are subject to democratic control, and therefore public acceptance and understanding are essential. This is in sharp contrast to the prewar period, when the working conditions of government officials were set by Imperial Order, an order of the Emperor, without the participation of the people. Although postwar public employees do not enjoy the high remunerations and privileges of prewar public officials, it is no less significant that they are guaranteed by law the same level of working conditions as those in the private sector. Moreover, it should not be underestimated that the public service system has been placed under democratic principles, which guarantees basic human rights to public employees as well. Postwar public employees are no longer required to serve the Emperor faithfully and indefinitely as prewar officials were.11
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