Dismissed workers of failed company win a victorious settlement

Five workers of a failed machine tool manufacturer on December 12 won a settlement with a company that took over the maker's business, mediated by the Chiba District Court.

Hitachi Seiki, a company established in 1936 and famous for machine tool manufacturing, went bankrupt in August 2002 and dismissed all 800 employees. Mori Seiki Co., Ltd., another machine tool maker, took over the business of Hitachi Seiki but rehired only one third of the former Hitachi Seiki employees. Workers of the failed company formed the Hitachi Seiki Branch of the All Japan Metal and Information Machinery Workers Union (JMIU) and in December 2002 they filed a lawsuit against both Hitachi Seiki and Mori Seiki with the Chiba District Court, demanding that dismissed workers be employed by Mori Seiki.

In the out-of-court settlement, Hitachi Seiki apologized for the company's bankruptcy, worker-dismissals, and rejection of collective bargaining. Mori Seiki and Hitachi Seiki promised to pay the workers settlement money.

The National Confederation of Trade Unions (Zenroren) and Japanese Communist Party members of the Diet and of local government assemblies have encouraged the JMIU Hitachi Seiki Branch in the court and urged Mori Seiki to ensure the workers' employment. (end)