May 13, 2009
Three former Isuzu Motors contingent workers have won an overall victory in a court struggle demanding that the automaker pay them unpaid wages associated with their layoffs.
The Utsunomiya District Court on May 12 ruled that the dismissals during a contract period have no legitimate basis as it is “prohibited by the Labor Contract Law in principle” and that it is “against the rule of reason” for the company to pay reduced amounts of wages for the remaining days of the contract. The court ordered Isuzu to pay about 800,000 yen in back pay to the three former fixed-term contract workers of the company’s Tochigi Factory.
The plaintiffs are members of the All-Japan Metal and Information Machinery Workers’ Union (JMIU).
The world’s largest diesel vehicle maker announced a plan late last year to lay off its 1,400 contingent employees, including fixed-term contract workers, before their contracts expired. The maker came under public criticism and finally revoked the plan to lay off fixed-term contract workers. However, Isuzu said that the workers will be placed on leave with a pay cut of 40 percent for the rest of the contract term.
At a news conference after the court decision, one of the plaintiffs said, “We were able to achieve this victory thanks to help from the union and many supporters. We will continue to struggle to win our status as regular employees of Isuzu in the Tokyo District Court.”
Their lawyer said, “With the court acknowledging the illegality of the wage cuts and dismissal notification, we have won a total victory that will encourage many more workers who are still waging court struggles throughout the country.”
Large corporations have persistently declined to use part of their internal reserves or reduce dividends to their shareholders in order to save jobs. On the contrary, they do not hesitate to force illegal dismissals in disregard of workers’ contract period. What is more, they are destroying jobs and wages of not only contingent workers but also full-time employees.
The Japanese Communist Party has been demanding that the government press these corporations to fulfill their social responsibly for maintaining stable employment and salaries, arguing that this is the way to expand domestic demand in order for the country’s economy to recover.
The Utsunomiya District Court on May 12 ruled that the dismissals during a contract period have no legitimate basis as it is “prohibited by the Labor Contract Law in principle” and that it is “against the rule of reason” for the company to pay reduced amounts of wages for the remaining days of the contract. The court ordered Isuzu to pay about 800,000 yen in back pay to the three former fixed-term contract workers of the company’s Tochigi Factory.
The plaintiffs are members of the All-Japan Metal and Information Machinery Workers’ Union (JMIU).
The world’s largest diesel vehicle maker announced a plan late last year to lay off its 1,400 contingent employees, including fixed-term contract workers, before their contracts expired. The maker came under public criticism and finally revoked the plan to lay off fixed-term contract workers. However, Isuzu said that the workers will be placed on leave with a pay cut of 40 percent for the rest of the contract term.
At a news conference after the court decision, one of the plaintiffs said, “We were able to achieve this victory thanks to help from the union and many supporters. We will continue to struggle to win our status as regular employees of Isuzu in the Tokyo District Court.”
Their lawyer said, “With the court acknowledging the illegality of the wage cuts and dismissal notification, we have won a total victory that will encourage many more workers who are still waging court struggles throughout the country.”
Large corporations have persistently declined to use part of their internal reserves or reduce dividends to their shareholders in order to save jobs. On the contrary, they do not hesitate to force illegal dismissals in disregard of workers’ contract period. What is more, they are destroying jobs and wages of not only contingent workers but also full-time employees.
The Japanese Communist Party has been demanding that the government press these corporations to fulfill their social responsibly for maintaining stable employment and salaries, arguing that this is the way to expand domestic demand in order for the country’s economy to recover.
