Suffice it to say that I am aware of situations created by a societal expectation of lifetime employment which make the above article look positively sane. (And I recently learned that, in some cases, what I had assumed was just an ironclad social contract actually is legally enforceable, which blows my mind.)
The correction is unclear... Since there are always exceptions, of course it's not the case that "dismissing a permanent employee (正社員) is always illegal". But there's in fact a (somewhat vague but broad) provision in labour law and also precedents that make it very difficult to legally fire a permanent employee in normal circunstances.
Basically you can legally fire a permanent employee in the same sense that a civil servant in most countries can be fired: if the employee does something egregious, like stealing from the company, not showing up for a long period of time with no reason, etc. Certainly not for incompetence, or even if the company has been in the red for several years in a row.
E.g. Japan Airlines went basically bankrupt (technically a restructuring) and even so they had trouble laying off part of the staff.
Suffice it to say that I am aware of situations created by a societal expectation of lifetime employment which make the above article look positively sane. (And I recently learned that, in some cases, what I had assumed was just an ironclad social contract actually is legally enforceable, which blows my mind.)