An NSK survey says 51 of the 56 media companies surveyed have started rehiring in response to changes to the employment stabilization law for older people.

The survey says many respondents referred to “creating jobs for rehired employees” as a new challenge.

Many Japanese newspaper companies and news agencies enforce mandatory retirement at age 60. But the government is moving to cope with the new demands of an aging society. The government's responses include changes it made in April to the Law on Employment Stabilization for Older People. The revised law requires employers to keep workers on their payrolls till the age of 65 on a phased basis.

The changes require employers to choose this fiscal year among three options. They can raise their mandatory retirement ages, abolish mandatory retirement, or adopt continuing employment systems. In addition, employers must prolong continuing employment on a phased basis by 2013 to ensure employment for all staff till they become eligible for the state welfare pension.

Depending on financial and other conditions, employers need not rehire all employees who hit retirement age. But, employers must set specific, objective criteria for reemployment under labor-management programs.

The NSK survey was aimed at finding out about each media organization’s responses to the new law. A total of 56 member companies had responded to the survey as of June 1. The respondents included 55 newspaper publishers and news agencies and one broadcaster.

The survey revealed that 30 companies have introduced reemployment systems, while 20 have modified existing rehiring schemes. One newspaper company revised an existing rehiring scheme and introduced a new system.

In setting criteria for employee reemployment, 27 companies said they have set criteria, although, in principle, all employees who apply will be rehired. Another 23 companies said they would set criteria and rehire only those who meet them. A small minority -- just three companies -- said they have not set any criteria for rehiring.

Commonly criteria include a performance evaluation for the past several years (generally two to three years), good health conditions certified by company physicians, and professional ability, ability ratings or duty positions.

The most common form of reemployment is a “shokutaku” short-term contract. In most cases, the contract is for one year, renewable till eligibility for the state pension. At 21 companies, all unused paid leaves at retirement are carried over upon rehiring. At 30 other firms, paid leaves are given during reemployment, with 20 days a year the most common quota. Many companies said they also pay regular bonuses to rehired “shokutaku” employees.

As for the job descriptions for rehired staff, 21 companies said they vary from person to person, as expectations for rehired employees do not always match current workplace needs.

A total of 16 companies said rehired employees mainly stay at the same workplaces to “utilize experience,” “maximize immediately adaptable potential” and “nurture younger staff.” Five companies said they move rehired employees to new workplaces because of a “lack of need at pre-retirement workplaces” and their reassignment “to formulaic work without much overtime.”

Regarding job categories and work sites, 11 companies said they created new jobs for rehired employees. Some companies created daytime-only jobs in their printing sections. Others cut back on temporary hiring and part-timers to create job opportunities for the returnees.

Many companies referred to creating jobs for older employees as a new challenge. Some pointed to the importance of resolving the mismatch of rehired employees’ expectations and actual requirements. Others said they are already planning for medium and longer-term employment for older employees as required reemployment moves to five-year terms in 2009.