Wage cuts for bank employees 55 and over is unlawful

The Sendai High Court on February 12 ordered Michinoku Bank in Aomori City in northern Japan to pay 71 million yen to its six former employees, saying that the bank's rule to cut wages for employees aged 55 and over is unlawful.

The high court previously made a ruling in favor of the bank management, but the Supreme Court in September 2000 overturned the high court decision, saying that it is not allowed for company management to unilaterally establish disadvantageous working conditions on workers in order to increase company profits.

The Supreme Court decision got a lot of media attention and was published in a school textbook as an example of workers' rights.

The plaintiffs' lawyers said that the Sendai High Court made a correct decision that conforms to the Supreme Court decision.

One of the plaintiffs said that their struggle was a struggle to defend the rights of middle-aged and elderly workers, and that the high court decision will encourage many workers who are fighting against restructuring.

Michinoku Bank Employees Union chair said that the union will demand in collective bargaining with the bank management that all employees 55 and over be paid the arrears.

The Union has only five members. Most of the employees belong to the other union which has agreed to the wage cuts and testified on the side of the management in court. (end)