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Taxi drivers file lawsuit calling for state compensation

Taxi drivers have filed a lawsuit, holding the state responsible for an overflow of taxi cabs caused by deregulation. They are demanding that the government pay 100 million yen in compensation for their losses in wages.

Sixty nine Taxi drivers in Sendai City with a population one million in Miyagi Prefecture have brought the case to court. This is the nation's first lawsuit of this kind.

The surge in the number of taxies followed the deregulation that eased entry into the taxi business.

As a result of the revision of the Road Traffic Act in 2002, the number of taxies in Sendai soared by 30 percent, causing more taxi drivers to wait on roads and at stations for passengers and suffer from cuts in their wages below the Daily Life Security Law level.

The revised law bans increasing taxies unless regional security is maintained.

Onagi Yoriaki, a plaintiff, stated, "Drivers have to work longer than before to make ends meet, which is also threatening the safety of users."

A trade union leader said, "The court struggle in Sendai is expected to spread to other prefectures." - Akahata, June 24, 2005