Japan Press Weekly

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2011 September 28 - October 4 [LABOR]

Massive dismissals could be avoided: JAL chair in court

Japan Airlines Chair Inamori Kazuo said that it was not impossible for his company to avoid the dismissals of 165 workers when testifying at the Tokyo District Court on September 30.

The remark was made during the examination as a witness in a lawsuit filed by JAL pilots and flight attendants urging the airline to retract their dismissals.

Inamori made similar remarks in February during his speech at the Japan National Press Club.

“Based on our earnings, everyone can see that it was possible to avoid the massive dismissals,” said Inamori at the court, adding that the company still had to implement the dismissal plan because it was required to do so in the corporate rehabilitation plan.

However, the corporate chair admitted that his carrier’s capital-to-asset ratio and net assets had substantially exceeded the target set under the rehabilitation plan.

In response to the plaintiffs’ lawyer who pointed out that the company had already surpassed its labor cost reduction target by 20.6 billion yen, he said, “I believe it was because many employees accepted voluntary retirement,” showing his recognition that the company had already succeeded in cutting labor costs with its voluntary retirement scheme.

As of December 9, when the company announced the dismissal of 165 employees, it already had 1,700 voluntary retirees, 200 more than its target. Inamori said, “I didn’t know the details.”