Court says 50% wage cut is illegal

The Kobe District Court on August 23 ruled that a 50 percent wage cut is illegal, and ordered an incorporated public body to pay its workers the whole wage. This decision brought an overall victory to plaintiffs.

166 union workers of ANCC Kobe Branch had been fighting in court for 16 months against the All Nippon Checkers Corporation (ANCC), an incorporated public body for counting quantity of and checking damage to export and import, claiming that the 50-percent wage cut and zero allowance were unfair.

On the grounds that ANCC's profits dropped due to the recession, deregulation, and the Great Hanshin Earthquake that hit Kobe area in 1991, the ANCC introduced the 50-percent wage cut only to the Kobe Branch out of 10 branches across the nation last April.

Since then, severe difficulties hit the workers.

One of the plaintiffs, a 51-year old man, said his after-tax monthly income was between 110,000 and 120,000 yen (about 920-1,004 dollars). To pay a 70,000 yen (about 585 dollars) housing loan, he canceled a life insurance contract, gave up his car, and borrowed money from his parents. He said his life was above the limits of toleration.

His anger at the ANCC moved him to struggle in court. At first, only a few workers took part in the struggle with him, but he tenaciously called for workers' solidarity.

He said, "Day by day, I felt the mounting solidarity. I was convinced that the only way to lead to victory is workers' struggle." (end)