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In response to growing criticism and international scrutiny, Japan is taking decisive steps to address the long-standing issue of worker exploitation within its thriving anime industry.
New legislation aimed at protecting freelancers and a formal study by the Japan Fair Trade Commission (FTC) signal a significant shift towards improving labor practices in a sector that has seen exponential financial growth but persistent concerns over worker welfare.
This move comes in the wake of a United Nations report highlighting the anime industry’s poor treatment of workers, contrasting sharply with the industry’s global $21 billion sales and its importance as a key Japanese export.
New laws to protect anime industry staff:
The new law for freelancers, which took effect in November 2024, mandates written contracts for all freelance workers, including those in the anime industry. These contracts must clearly specify pay details and working conditions.
Furthermore, businesses are now legally restricted from demanding additional work without offering commensurate pay and are obligated to ensure payments are made within 60 days of work completion.
Adding to these protections, the Japan Fair Trade Commission launched an official study late last month, specifically examining labor practices within the anime industry. Regulatory officials are actively encouraging workers to come forward and report any violations of labor laws, indicating a proactive approach to enforcement and oversight.
International pressure has played a role in prompting these changes. A United Nations Human Rights Council working group report in May 2024 specifically called out Japan’s anime industry for its “excessively long working hours” and low pay, alongside concerns about intellectual property rights.
This criticism was particularly impactful as the Japanese government has actively promoted anime as a cornerstone of its “Cool Japan” initiative, designed to enhance the nation’s soft power globally.
With entertainment content, including anime, becoming a major export rivaling traditional industries like steel and chips, the government is under increasing pressure to ensure ethical labor standards within this sector.
Domestically, growing public awareness regarding the precarious working conditions of freelance and independent workers, who constitute the majority of the anime workforce, has further fueled the demand for reform.
Why this is a move in the positive direction:
The anime industry’s structure, rooted in the post-1963 Astro Boy era, has historically contributed to its labor challenges.
The industry standard of weekly 30-minute productions, coupled with extensive outsourcing to smaller studios and freelance agencies, has created a system where revenue is thinly distributed.
Compensation often takes months to reach illustrators and voice actors, and instances of non-payment and violations of subcontracting laws have been reported. In certain cases, voice actors had to wait six months or longer for payments to reach them.
Workers frequently find themselves employed without formal contracts, relying on informal agreements made over phone calls or messaging applications, leaving them vulnerable and uncertain about their pay.
Personal accounts from anime workers (as reported by Bloomberg) underscored the severity of these issues.
Veteran voice actress Yumiko Shibata (who had roles in Saint Seiya, Gegege no Kitaro among others), 60, recounted spending her 20s working in nightclubs to supplement her meager voice acting income, despite voicing lead roles.
Nobunari Neyoshi, a former voice actor agency operator, highlighted the rampant violations of subcontracting laws and instances where actors receive no payment at all. Aina Sugisawa, a trainee at TMS Entertainment, confirmed the common practice of commencing work even before formal contracts are in place.
Industry data reveals that animators in their early twenties earn less than 2 million yen ($12,948) annually, significantly less than the average Tokyo resident of similar age and less than half of what entry-level animators earn in the United States.
On top of that, anime industry staff are often not part of unions, which makes it hard for them to put forward their demands in unison.
Workers bust, but industry booms:
Despite these harsh conditions, the anime industry is experiencing unprecedented global success. The pandemic year of 2020 saw the film Demon Slayer: Mugen Train become the top global box office hit, grossing over $470 million.
Approximately 400 anime titles are produced in Japan each year, attracting a dedicated global fanbase and significant investor interest.
Corporate giants like Sony and Toho have made major acquisitions in anime streaming and distribution, recognizing the genre’s immense international appeal and potential for further expansion.
However, analysts warn that the industry’s outdated working style and low social governance standards could deter future investments and hinder potential deals.
On looking closely, several underlying factors contributing to the persistent exploitation surface.
The intense competition to enter the anime industry, fueled by a deep passion for the art form, has created a workforce willing to endure poor conditions.
Many workers attribute their financial struggles to personal shortcomings, aspiring to reach higher-paying senior roles like key frame animators or directors, positions that remain scarce.
Demographic shifts and technological advancements, particularly the rise of AI, are also anticipated to reshape the industry, potentially leading to labor shortages and further job displacement at entry levels.
On top of that, major studios are also looking at overseas outsourcing, with the Bloomberg report noting that Toei sends 70% of its animation work to a branch in the Philippines (except the major work).
Some industry observers, however, see potential for positive change. Analysts predict industry consolidation will empower smaller studios to negotiate for better wages and create a more sustainable market.
Yasunari Yamada, a lawyer specializing in freelance work, emphasized that legal protections alone are insufficient and that workers must proactively assert their rights as business operators. Encouragingly, there are emerging signs of workers beginning to advocate for themselves.
Yumiko Shibata’s recent successful complaint against a publisher for unpaid royalties is a sign of willingness among anime workers to speak out and demand fair treatment after years of silent endurance.
Source: Bloomberg
