Canon carries out mass layoffs while receiving subsidies to expand employment opportunities

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Canon carries out mass layoffs while receiving subsidies to expand employment opportunities

In Oita Prefecture, people are infuriated by Canon and other large manufacturers carrying out arbitrary mass layoffs of temporary and other contingent workers while receiving from the prefectural government subsidies to offer more jobs.

With the aim of expanding employment opportunities and stimulating the local economy, the Oita Prefetural Government provided subsidies for big companies that do business in the prefecture. The prefectural government spent 12.27 billion yen for subsidies to large corporations between 1996 and 2008.

Two Canon Group companies received a total of 5.7 billion yen in subsidies from the prefectural government. They also received 2 billion yen in subsidies from the Oita City for four years up until 2008.

Toshiba, the second largest recipient, was given 500 million yen in subsidies from the prefectural government, followed by Daihatsu's 490 million yen and Sony's 236 million yen.

In Oita Prefecture, 2,511 contingent workers were laid off by these manufacturers, including 1,097 by Oita Canon, 80 by Oita Canon Materials, and 380 by Toshiba Oita Plant.

The local economy has been seriously impacted by these mass dismissals. Local government have begun to take emergency measures to provide jobs.

The large corporations are defiant.

Oita Canon Material said, "The company is not responsible for the laid-off temporary workers because it had made the temporary work arrangement with the staffing agency instead of the workers themselves", and insisted that the layoff of these temporary workers is a matter that concerns the staffing agency.

Japanese Communist Party member of the Oita Prefectural Assembly Tsutsumi Eizo made the following comment:

"It is arrogant of the large companies to carry out mass layoffs while receiving subsidies that were paid to encourage companies to offer jobs. Establishing rules requiring companies to secure jobs is necessary. It is unacceptable that the prefectural government tolerate such corporate behavior on the grounds that the economic situation has changed. It is the prefectural government's responsibility to urge companies to secure jobs because the government used tax money for subsidies to attract such companies.

- Akahata, January 9, 2009