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HOME  > Past issues  > 2011 December 7 - 13  > Panasonic’s nationwide factory closure damages local economies: JCP Yamashita
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2011 December 7 - 13 [LABOR]

Panasonic’s nationwide factory closure damages local economies: JCP Yamashita

December 8, 2011
Japanese Communist Party lawmaker Yamashita Yoshiki on December 7 criticized the government for allowing Panasonic to deal a heavy blow to local economies through its nationwide factory closure scheme while the company has benefitted from the state program motivating consumers to buy energy-efficient electronics products.

Yamashita in a House of Councilors Audit Committee meeting said that electronics giant Panasonic plans to slash 15,000 jobs through its closure of two factories, including one in Amagasaki City in Hyogo Prefecture, and scaling down or suspension of production in five factories, including one in Tottori Prefecture.

He explained that in Tottori, Panasonic intends to downsize its factory operations, move 450 factory workers to distant locations, and force 370 workers to accept early retirement. He said that the prefectural governor has repeatedly requested the company to retain its jobs there.

Yamashita cited that as the national government’s 70 million yen-budget “eco points” incentive program and inauguration of digital terrestrial broadcasting boosted sales of energy-saving appliances and digital TVs, the mammoth consumer-electronics manufacturer amassed more than 4 trillion yen in internal reserves.

He also pointed out that as well as the Hyogo Prefectural government, other local governments hosting Panasonic facilities subsidized them in various ways.

Yamashita said, “Did the government use the 70 million yen in tax money for benefitting only major campanies? Large corporations are required to fulfill their social responsibility to maintain employment and support local economies. It is unacceptable for the government to take no measures against Panasonic’s factory closure and downsizing plan.”

Economy and Industry Minister Edano Yukio replied, “It is outrageous to cut jobs while having large amount of internal reserves.” However, he spoke up for Panasonic, by saying, “Concentration and selection of business operations are necessary for companies to keep their businesses.”

Yamashita criticized Panasonic for separating some married couples by transferring them to different and distant locations and causing female workers, who are pregnant or on maternity leave, to quit their jobs.

Referring to the ILO Convention Concerning Workers with Family Responsibilities that Japan ratified, Yamashita said, “The government should investigate the situation and instruct Panasonic to stop doing such things.”
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