July 12, 2011
Leading auto manufacturers began recruiting a large number of fixed-term contract workers just after they had carried out mass dismissals of temporary workers. The move sheds light on large corporations’ use of their workforce as an adjustment valve according to economic cycles.
“If auto production declines, Honda (Motor Co.) will dismiss us again. They have no concern for our livelihoods,” said a fixed-term contract worker in his fifties at Honda Saitama Factory in Sayama City.
The man started working at the factory at the end of 2008 and was fired in the spring of 2009 in the aftermath of the bankruptcy of Lehman Brothers. At the time, Honda terminated the contracts of all 4,300 fixed-term contract workers at its five factories.
After the dismissal, he only found a part-time job at an hourly rate of 900 yen. He earned about 100,000 yen a month, half the salary he had earned at Honda.
Asked by Honda to come back last year, he returned to the same plant, again as a fixed-term contract worker. Nevertheless, the March 11 disaster caused a decline in auto production. At the end of April, a director of the factory announced that the company decided not to renew the contracts of the fixed-term contract workers, at least until November when they expect to see a recovery in output. According to the factory workers, Honda intended to terminate the contracts of half of the 600 fixed-term contract workers at the plant.
However, the company soon withdrew this dismissal plan on the ground that they considered that the recovery will come earlier than expected. In the middle of June, it started recruiting 1,000 more fixed-term contract workers at its plants nationwide.
Before this particular contract worker began working at the plant, full-time workers were responsible for his production line. Currently, he and a full-time worker take turns doing the same job on a two shift system although he earns only about 3 million yen a year, half the annual income the full-time employee earns.
“Honda is only concerned about short-term profits and treats us inhumanely,” the worker said angrily.
“If auto production declines, Honda (Motor Co.) will dismiss us again. They have no concern for our livelihoods,” said a fixed-term contract worker in his fifties at Honda Saitama Factory in Sayama City.
The man started working at the factory at the end of 2008 and was fired in the spring of 2009 in the aftermath of the bankruptcy of Lehman Brothers. At the time, Honda terminated the contracts of all 4,300 fixed-term contract workers at its five factories.
After the dismissal, he only found a part-time job at an hourly rate of 900 yen. He earned about 100,000 yen a month, half the salary he had earned at Honda.
Asked by Honda to come back last year, he returned to the same plant, again as a fixed-term contract worker. Nevertheless, the March 11 disaster caused a decline in auto production. At the end of April, a director of the factory announced that the company decided not to renew the contracts of the fixed-term contract workers, at least until November when they expect to see a recovery in output. According to the factory workers, Honda intended to terminate the contracts of half of the 600 fixed-term contract workers at the plant.
However, the company soon withdrew this dismissal plan on the ground that they considered that the recovery will come earlier than expected. In the middle of June, it started recruiting 1,000 more fixed-term contract workers at its plants nationwide.
Before this particular contract worker began working at the plant, full-time workers were responsible for his production line. Currently, he and a full-time worker take turns doing the same job on a two shift system although he earns only about 3 million yen a year, half the annual income the full-time employee earns.
“Honda is only concerned about short-term profits and treats us inhumanely,” the worker said angrily.
