Comparison: Japanese and American Plant Closing Laws

This Note analyzes the American and Japanese approaches to plant closings and discusses to what extent the American government can apply the successful Japanese approach to its own labor relations system. The first part examines the specific provisions of the two nations’ laws. Second, it illustrates how the divergent social rules and historical backgrounds influence the operation of the plant closing laws in both nations. Part three explores the impact and applicability of Japanese labor policies to American industrial practices. The Note concludes that although the Japanese provide a general model for a labor management system which combines cooperation and economic development, cultural and historical differences prevent a transplanted Japanese approach from attaining the same results in the United States.