Japan Press Weekly

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2008 December 23 - 2009 January 6 [LABOR]

Isuzu revokes dismissal plan of contingent workers during their contract term

A struggle of workers and the Japanese Communist Party forced Isuzu Motors to announce that it will save 550 jobs for fixed-term contract workers instead of going ahead with its initial plan to lay off 1,400 contingent workers even without waiting for the date of expiration of their contracts.

While withdrawing the initial job-cut plan, Isuzu announced a new job cut plan to propose to contingent workers terminating their contracts if the workers agree with the plan. The company says that those workers who accept its offer will receive 85 percent of their monthly wage as severance pay and that those who refuse to accept the plan will be treated as laid off workers who are paid 60 percent of their current wages until the date of expiration of the contract.

Isuzu is asking workers to respond by December 26. Temporary workers are no included in this new plan.

At a news conference, the All-Japan Metal and Information Machinery Workers’ Union Isuzu Motor Branch Chair Matsumoto Hirotoshi said, “Our struggle and public opinion contributed to forcing the company to give up its initial plan. However, the Isuzu job cut plan remains unchanged. It is outrageous that Isuzu is urging workers to respond with a few days. We will continue to press Isuzu to provide contingent workers with full-time positions and withdraw dismissals of temporary workers.”