During the U.S. occupation of Japan following World War II, occupation authorities established Japanese labor law, using key features of the Wagner Act. In particular, the Japanese law establishes unfair labor practices and protects workers' rights to organize and bargaining collective. There are, however, some key differences. The Japanese system is organized around the concept of the enterprise union, or unions that represent workers at a single company only. As such, there are nearly 70,000 worker unions in Japan. Exclusive representation is not, however, a requirement and some companies have multiple unions. In sharp contrast to the U.S. system, labor unions and management have much closer ties, with union leaders sometimes moving into management ranks. Enterprise unionism is reinforced by strong ties between Japanese workers and the companies they work at, often for a lifetime. This system of lifetime employment encourages a more collectivist mentality and relationships between workers and management in Japan are generally much more cooperative than observed in the U.S. Employers are more likely to share information with employees and a number of companies have joint labor-management consultation.

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