Employment adjustment and labor-management relations during COVID-19: a case study of Japan’s All Nippon Airways

Purpose This study provides a comprehensive examination of labor-management relations at All Nippon Airways (ANA), Japan’s leading airline, and its trade union during the initial stages of the COVID-19 pandemic in 2020. Design/methodology/approach Unlike previous studies that relied mainly on econometric analysis to show Japan’s slower pace of employment adjustment than the United States, this study adopts a qualitative case study approach focusing on ANA to analyze the underlying processes of employment adjustment. Findings The findings suggest that Japan’s slower pace of employment adjustment is due to the shared priority of both management and unions to maintain employment. Early wage adjustments and flexible redeployment, facilitated by unions, function as key mechanisms of adjustment. These measures not only preserved employment during the downturn but also enabled a rapid workforce recovery once demand resumed. Research limitations/implications While flexible transfers appear to facilitate rapid workforce recovery during economic upturns, this study is limited to the Japanese context. Further comparative research across different institutional settings is necessary to determine whether these mechanisms are unique to Japan or represent broader patterns of employment adjustment. Originality/value This study provides a qualitative analysis of how ANA and its union flexibly adjusted employment during COVID-19, offering novel insights into the mechanisms of employment stability that extend beyond the findings of traditional quantitative research.