This article advances the claims of Japanese firms to be considered as a form of workers' co-operative which overcomes the disadvantages of those normally encountered in the West. It proceeds by examining the nature of contracts for various groups involved in large firms and then goes on to consider the problem of exploitation and the part played by small firms in economic activity. Finally, the importance of cultural differences is emphasized.

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Government policy has fallen short of total abolition of wages councils. In this article the authors argue that whilst reforming the wages councils might result in young workers getting jobs at the expense of older workers there is no evidence to suggest that cutting adult wages will increase the level of employment.

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