Large corporations' illegal practice limits temps to 'working poor' conditions: JCP Ichida

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Large corporations' illegal practice limits temps to 'working poor' conditions: JCP Ichida

At factories of well-known large corporations, wretched working conditions are rampant.

In the October 13 House of Councilors Budget Committee meeting, Japanese Communist Party Secretariat Head Ichida Tadayoshi brought to light the "working poor" issue. In particular, Ichida criticized large corporations for their illegal practice of "disguised contract work."

"Mr. Ichida's question has got to the heart of the problem. This is a question that only the JCP can ask," said a man who used to be an executive of Crystal Group, the largest staffing agency in Japan.

The Crystal Group, that had begun its business by undertaking cleaning operations that an auto-body maker contracted out to them, rapidly expanded its business in the 1990s. In the 1980s, Crystal's annual sales ranged from several hundred million to several billion yen, but in 2005 the staffing agency earned more than 500 billion yen. The Crystal Group is now itself a large corporation.

Canon uses 3,033 temporary workers at seven establishments, Panasonic, 2,701 workers at 13 establishments, Sony, 1,485 workers at 5 establishments, and Toshiba, 8,556 workers at four establishments.

Ichida in his question period revealed the names of corporations that accept contingent workers from the Crystal Group as well as the number of workers involved.

A core subsidiary of the Crystal Group, Collaborate, was ordered on October 3 to suspend its business operations because of its illegal "disguised contract work."

How has this illegal corporate practice become so widespread? The former Crystal Group executive explained as follows:

"It is simply because large corporations want this. When asked by large corporations to step in, the Crystal Group always does so by easily crossing the line. These receiving corporations are not held responsible for the treatment of the contract workers. They say it is the staffing agency that has to take care of contract workers' on-the-job accidents and social insurance."

He went on to say, "Lifting a ban on use of temporary workers in the manufacturing sector has caused the increase in the number of 'disguised contract work' cases. As Mr. Ichida pointed out, the government should restore the ban and pursue corporate responsibility by revealing the names of the large corporations illegally using contract workers."

In response to Ichida, Prime Minister Abe Shinzo said, "It will be a serious problem if corporations establish their way of production by taking the 'working poor' for granted. The government must strictly deal with 'disguised contract work'."

"Disguised contract work" and unpaid overtime work are the two major illegal practices at workplaces in Japan. The JCP is calling for eradication of both.
- Akahata Sunday edition, October 22, 2006