note) The sum of land sales, sale of JR stock and burden of the nation is the initial forecast.
2) Re-employment of Employees Made Redundant by
In 1986 (the year before privatization), the JNR labor force consisted of 277,000 employees. This number had to be reduced by 30%, to about 201,000 persons which were considered necessary to operate the new JR firms. So about 76,000 workers were made redundant.
About 53,000 out of 76,000 workers retired voluntarily. The rest about 23,000 workers were employed by the settlement corporation, which provided them with vocational training and a job referral service for three years (1987-90)/Almost all of them got a new job successfully.
3) Management Stabilization Measures
The newly born JR companies displayed major differences among them in the structure of their incomes and expenditures. Specifically, JR East, whose area of operations included Tokyo, JR Central, whose area of operations included Nagoya, and JR West, whose area of operations included Osaka, anticipated large amounts of profit in their operations, while JR Hokkaido, JR Shikoku and JR Kyushu, placed in less populated areas, had fewer users and anticipated that they would be running at a loss.
First of all, the \14, 500 billion in long term debt out of the total \37, 100 billion owed by JNR was placed with the firms JR East, JR Central, JR West and JR Freight, as they were expected to be able to make a profit, while JR Hokkaido, JR Shikoku and JR Kyushu who were expected to be operating at a loss were burdened no debt at all.
