A site supervisor working over 100 hours of overtime. Is the Labor Standards Inspection Office to blame for unpaid overtime?

Are there many site supervisors who work more than 100 hours of overtime?

Many site supervisors work more than 80 hours of overtime. I think there are quite a few site supervisors for whom working over 100 hours of overtime is the norm.

Furthermore, since the Dentsu overwork-related suicide case came to light, the Labor Standards Inspection Office has been cracking down, and I’ve heard that in some workplaces, employees are being forced to work unpaid overtime when their overtime hours exceed 80 hours.

If things continue this way, it’s only natural that the Labor Standards Inspection Office would point out that, rather than reducing overtime, “only salaries are being cut.”

I am concerned that this issue could lead to scandals in the construction industry and a trend of young people turning away from the field.

The construction industry is exempt from the "Article 36 Agreement"

The Ministry of Health, Labor and Welfare has established upper limits—such as 45 hours per month—in a public notice regarding the “Article 36 Agreement” concluded between employers and employees concerning overtime work; however, the construction industry is exempt from these regulations.

The reason for the exemption is that, in the construction industry, the volume of construction contracts tends to fluctuate, and work is highly susceptible to weather conditions, making it difficult to set a fixed upper limit on overtime work.

However, there have long been many claims that this is leading to excessive overtime in the construction industry.

The Labor Standards Inspection Office’s Definition of “80 Hours of Overtime”

In Heisei 13, the Ministry of Health, Labor and Welfare issued a circular from the Director-General of the Labor Standards Bureau titled “Criteria for the Certification of Cerebrovascular Diseases, Ischemic Heart Disease, and Other Conditions (Excluding Those Resulting from Injury).”

Based on this, the so-called “karoshi threshold”—defining “overtime and holiday work as 80 hours per month”—was established. While this “80-hour” threshold was likely derived from relevant statistical data, the Ministry of Health, Labor and Welfare and the Labor Standards Inspection Office have been determined to enforce this “80-hour” limit in the construction industry as well ever since the Dentsu overwork-related suicide case.

If we attempt to impose the same rules as those in other industries without taking into account practices that have been accepted until now, it is only natural that this could actually encourage the existence of “black companies” that force workers into illegal labor conditions. However, paying no heed to this, the Labor Standards Inspection Office is now conducting on-site inspections at construction sites and issuing corrective orders without mercy.

General contractors that rely on public works projects have no choice but to comply, as they cannot defy the government. Furthermore, when they receive corrective guidance, they are generally required to submit a corrective action report within one month.

Don't log more than 80 hours of overtime! Just go with the flow!

Although unpaid overtime is a deeply rooted problem throughout the construction industry, we are being asked to correct it within a month. The quick fix for this at construction sites is simply to “not record more than 80 hours of overtime.” To be honest, this is about the extent of what site managers can do.

It would be a different story if the entire company were to say, “Don’t worry about the construction schedule or costs—let’s all keep our overtime under 80 hours!” but that’s simply not going to happen. This is because, not just in the construction industry but in for-profit companies in general, “work-life balance” is a secondary concern and a low-priority issue.

I, too, have given instructions like, “Don’t log any more overtime,” just as anyone would. From the subordinates’ perspective, since it’s an order from their boss, their options are limited to either “go home without working overtime” or “work unpaid overtime.”

It probably isn’t that difficult to go home without working overtime, but if you end up failing to complete your assigned work by the deadline, you’ll receive a negative evaluation. To avoid that, you have no choice but to work unpaid overtime. Added to this is the sense of responsibility that comes with being an engineer who takes pride in quality and is committed to ensuring it. Ultimately, the burden of this falls on the front-line staff.

According to an acquaintance at a certain general contractor, the claim that “we can’t record more than 80 hours of overtime due to Labor Standards Act compliance” is not an official work directive but rather a matter of “reading the room.”

Long working hours are an issue between general contractors and clients

In its “Heisei 28 White Paper on Measures to Prevent Deaths from Overwork and Related Issues,” the Ministry of Health, Labor, and Welfare published companies’ responses regarding “reasons why overtime work is necessary.” The top four reasons are as follows.

  1. Because we need to address the unmet needs of our customers (consumers)
  2. Due to the heavy workload,
  3. Because there are significant fluctuations in the workload,
  4. Due to a shortage of staff,

Despite these being responses from companies, few of them attribute the issue to individual abilities or qualities. In other words, I believe it is safe to conclude that long working hours are not the responsibility of the workers, but rather stem from the companies themselves.

Japan’s employment system assigns “people” to “jobs.” Unlike in other countries, where “jobs” are assigned to “people,” this approach carries the risk that the scope of duties assigned to an employee could expand indefinitely, and it is highly likely to drive an increase in the absolute volume of work. As the scope of duties expands and employees come to handle multiple responsibilities, even if their primary tasks are proceeding smoothly, they may be forced to work overtime if problems arise in relation to their other duties. For example, an acquaintance of mine who works in construction management at a homebuilder is responsible for several residential construction projects all by himself.

For better or worse, it seems that overtime in this country arises for rational reasons. And in the construction industry—whether for public or private projects—the role of the client is not unrelated to the issue of long working hours.

Is the “Work Style Reform” a Farce? Is Overtime Really “Evil”?

Discussions on “Work Style Reform” are underway with the aim of realizing a society where all 100 million people can play an active role, and the government has identified the following three issues in Japan’s labor system.

  • Eradicate the term “non-regular” from society
  • Changing the current situation where a culture of boasting about long working hours has become widespread and accepted as the norm
  • Changing Japan's Linear Career Paths

Under the “Work Style Reform” initiative, some argue that curbing long working hours will attract top talent. In March of this year, as part of the “Work Style Reform Implementation Plan,” a policy direction was finalized to establish upper limits on overtime hours.

However, my honest opinion is that the reality at construction sites is actually the opposite.

In my experience, the more talented a construction management engineer is, the more likely they are to say, “I want to work a lot.” The best approach in today’s construction industry is to grant them autonomy, let them take on as much work as they want, provide them with substantial compensation for their efforts, and ensure they deliver solid results.

While it’s important to consider health concerns, values vary from person to person. Some people don’t want to work even a single second of overtime, while other site supervisors are willing to work 100 or even 200 hours of overtime—provided they receive compensation in return.

In that regard, the Labor Standards Inspection Office’s formal guidance—stating that “overtime and holiday work should not exceed 80 hours per month”—leaves some questions unanswered.

It appears that the Ministry of Health, Labor, and Welfare plans to require large companies to disclose their overtime hours by 2020, but will this actually reduce overtime? What I’m thinking about right now is how to secure enough temporary workers by then to reduce the amount of unpaid overtime worked by our regular employees.

However, deep down, I believe that a society where all 100 million people can play an active role should also allow for flexible work arrangements that aren’t bound by fixed working hours. Of course, this is just my personal opinion.

The God of Construction

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