Japan Press Weekly

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2012 February 22 - 28 [LABOR]

Top court recognizes Victor Co. independent contractors as workers under the Labor Union Law

Overturning a lower court decision, the Supreme Court on February 21 recognized the right of collective bargaining to independent contractors of a subsidiary of a major audio equipment manufacturer who are engaged in repair of products, and sent the case back to the lower court.

This is the third top court ruling, following its rulings in April 2011 in two similar lawsuits filed by a contracted opera singer and independent contractors of INAX.

The workers in the latest ruling in 2005 formed a branch of the All-Japan Metal and Information Machinery Workers’ Union (JMIU) in order to oppose unilateral cuts in repair fees by the company, Victor Service and Engineering Co., Ltd., affiliate of the former Victor Company of Japan (current JVC KENWOOD Corporation).

The company, however, refused to recognize the union by arguing that it contracts with self-employed individuals and that they are not Victor workers. It also refused to negotiate with the union. So, the union decided to take legal action claiming that they have the right to form a union and negotiate with the company collectively.

After the ruling, JMIU branch members petitioned JVC KENWOOD Corporation to make efforts to resolve the dispute without delay.