Japan Press Weekly

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2009 June 3 - 9 [LABOR]

Aozora Bank illegally fires contract worker: JCP Daimon

Aozora Bank, Ltd., which forces its employees to fulfill their goals of sales under the performance-based pay system, has issued dismissal notices to contract workers who did not achieve their goals.

Japanese Communist Party representative Daimon Mikishi revealed this at a House of Councilors committee meeting on June 4.

Pointing out, “This is one of the most inhumane examples of corporate conduct,” Daimon demanded that the government stop the bank from continuing this misconduct.

Daimon cited the labor contract at the Tokyo-based Aozora Bank, which is capitalized at 4.2 trillion yen with 6 trillion yen in total assets (consolidated) and 1,417 employees.

It states that the bank will not renew contracts if a contract worker’s sales did not reach 1.4 million yen. The bank recently told a contract worker (who failed to reach the goal) that the current contract will be terminated at the end of June.

Daimon maintained that Aozora Bank was apparently violating a Financial Services Agency directive that instructs the major banks to refrain from using a performance-based pay system in reviewing salaries, including bonuses, for sales workers.

If the bank’s misconduct is left unchecked, it will allow risky sales of financial instruments to run rampant and will eventually increase users’ losses from such sales, Daimon stated.

Mikuniya Katsunori, director general of the Financial Services Agency Supervisory Bureau, in response said that the agency will carry out necessary guidance to the bank.

Regarding the misconduct caused by domestic corporations following the irresponsible tactics of foreign systems, Treasury Minister Yosano Kaoru promised to take measures so that the quota system will be reviewed.