Shii meets with Toyota's top executives at JCP headquarters

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Shii meets with Toyota's top executives at JCP headquarters

Japanese Communist Party Chair Shii Kazuo on December 24 met with Toyota Motor Corporation executives and demanded that the Toyota group cancel its plan to carry out the massive layoffs of contingent workers and to take steps to fulfill its corporate social responsibility.

Senior Managing Director Furuhashi Mamoru and Managing Executive Officer Miyazaki Naoki of Toyota Motor Corp. were the first Japanese major corporate executives to visit the JCP head office.

In the meeting Shii said, "Toyota is Japan's leading manufacturer. It must bear a heavy social responsibility in spearheading the massive layoffs being implemented by large corporations. Given the fact that Toyota has paid high dividends to its shareholders and that it maintains an enormous amount of internal reserves, it is unreasonable for your company to carry out massive layoffs."

Concerning the Toyota group's 11,060 job cut plan, Shii asked, "Does Toyota regard fixed-term contract workers as mere valve adjustments?"

Furuhashi answered that the fixed-term contract workers are just "one type of worker."

Shii pointed out that it is illegal to dismiss fixed-term contract workers and temporary workers in the middle of their contracts or to refuse to renew contracts with workers who rightly expect their contracts to be renewed at the end of the current contracts.

Miyazaki explained, "Toyota Motor does not terminate contracts before the date of expiration. It tells its suppliers to do the same." As to not renewing contracts, he said, "We are doing everything we can."

Shii emphasized, "You can carry on employment by using only 0.2 percent of Toyota's internal reserves or only about one-eighth of interim dividends."

Furuhashi replied, "Toyota management has decided to not use the internal reserves (to maintain jobs for the fixed-term contractors)."

Shii said, "To rebuild the Japanese economy, it is necessary to stop depending on foreign demand and implement efforts to expand domestic demand. So, massive dismissals go against the effort to stimulate domestic consumption." He then asked, "Don't you see what you are doing is in essence a suicidal act?"

Furuhashi said, "It may be one way of thinking. With domestic demand shrinking, we were obliged to develop markets abroad. I think the question here is which should be given priority, market demand or employment?"

Shii pointed out that corporate behavior as well as government policies is to blame for the turndown of domestic demand.

- Akahata December 25, 2008