[Financial Planning for the 100-Year Life] Labor Unions Providing Education on Life Planning and Asset Management

Union Education Activities Shift Toward Life Planning and Asset Management
Japanese Unions Lead the Way in Supporting Financial Stability Through Education

Early last month, at the request of a public enterprise labor union headquartered in Busan, I gave a lecture on ‘Life Planning and Asset Management,’ and recently received a similar lecture request from a university hospital labor union in Jeonju, Jeollabuk-do. I initially thought it was just a routine lecture request, but it was not. As our society enters an era of low growth and aging, labor union educational activities have also changed. They have shifted from traditional labor education to education that helps union members in their daily lives, such as life planning and asset management.

In this process, I recalled a conversation in 2012 with Manabu Shimizu, then vice chairman of the labor union at Seiko Epson Corporation in Japan, about ‘Retirement Education for Workers and the Role of Labor Unions.’ This is because we can glimpse the changes in Japanese labor unions, which entered a low-growth and aging society about 20 years ahead of us, in the current changes in Korean labor unions.

At that time, the Seiko Epson labor union, which had about 12,000 members, had the slogan (goal) ‘Life up union,’ meaning the union’s role was to be a supporter helping each union member realize a fulfilling life. The word ‘life’ has three meanings: life, livelihood, and living. The union’s goal was to contribute to company growth and social development by enabling workers who have gained stability in their livelihood to concentrate on their work. The core method of practice was life planning and livelihood planning. Life planning means envisioning an ideal life goal, and livelihood planning means establishing a concrete plan. In particular, the part actively supported in livelihood planning was financial planning.

From the mid-1990s, the role of the Seiko Epson labor union began to shift from strike-centered activities to ‘life support’ activities. This was because they realized that increasing workers’ disposable income was not only through wage increases or improved working conditions but also by reducing unnecessary household expenses and improving the efficiency of household asset management through proper financial education.

The person who first proposed and led these activities was Vice Chairman Shimizu. Originally a production worker, he became a full-time union official at the recommendation of a senior, but his original thoughts were quite different. He said, ‘If the union does not help its members at all and only protects the vested interests of union officials, I would lead the dissolution of the union.’

However, after attending a lecture by a new executive training instructor who told him to ‘study so that you can provide household counseling and support to union members,’ his perspective changed 180 degrees. Since then, he has taken the lead in changing the direction of union activities. Instead of focusing solely on wage negotiations, the idea was to increase workers’ existing income and support union members to establish stable livelihood plans.

The educational content created under Vice Chairman Shimizu’s leadership is very diverse. The union’s website features a column by a financial planner. They developed a program called the ‘Rich Calculator,’ which allows users to calculate necessary funds for housing loans, education, retirement funds, etc., by age group. Individual counseling is also available. Nearly 100 seminars are held annually at branch and headquarters levels. Special emphasis is placed on education preparing for retirement. They meticulously educate members on managing retirement pensions, a major source of income after retirement.

Vice Chairman Shimizu said, “The key is to ensure thorough financial management during the working period so that there are no financial difficulties after retirement,” and added, “We also focus on mental education to minimize the sense of loss after retirement, as well as vocational and hobby education for living a second life.” This approach has spread to other companies in Japan. The Seiko Epson labor union has become a brand synonymous with life support activities.

What kind of labor union is one for workers? How should union activities be developed for workers in the era of 100-year lifespans? How can the passion of a single union official change union activities? I think this is a good case to consider.

Kang Changhee, Representative of the Happy 100-Year Asset Management Research Association

This content was produced with the assistance of AI translation services.