June 30, 2009
Aozora Bank, Ltd. on June 29 announced that it decided to revoke the dismissal of a contract worker who failed to reach a sales quota, and to review its contract which forces contract workers to reach unrealistically high quotas.
Aozora Bank forced contract workers to sign contracts in which contract workers are forced to reach extremely high goals of financial instruments sales under the performance-based wage system, and if they fail to reach the goals they will be dismissed.
Regarding this issue, Japanese Communist Party member of the House of Councilors Daimon Mikishi on June 4 at the House of Councilors Financial Affairs Committee meeting used his question time to urge the government to correct the situation because the bank apparently is in violation of the Financial Services Agency directive.
The Financial Services Agency directive clearly states that in order to protect users, financial institutions should avoid using a performance-based pay system in reviewing salaries, including bonuses, for sales employees.
In response to Dimon’s question, the Financial Services Agency investigated Aozora Bank, determined its misconduct, and gave an instruction to the bank.
Daimon said to Akahata, “Refusal to renew fixed-term employment contracts based on sales performance is likely to be not only a matter of the Aozora Bank but also a matter of the whole financial industry including the major banks. In order to improve user protection, I will continue to take up the issue in the Diet.”
- Akahata, June 30, 2009
Regarding this issue, Japanese Communist Party member of the House of Councilors Daimon Mikishi on June 4 at the House of Councilors Financial Affairs Committee meeting used his question time to urge the government to correct the situation because the bank apparently is in violation of the Financial Services Agency directive.
The Financial Services Agency directive clearly states that in order to protect users, financial institutions should avoid using a performance-based pay system in reviewing salaries, including bonuses, for sales employees.
In response to Dimon’s question, the Financial Services Agency investigated Aozora Bank, determined its misconduct, and gave an instruction to the bank.
Daimon said to Akahata, “Refusal to renew fixed-term employment contracts based on sales performance is likely to be not only a matter of the Aozora Bank but also a matter of the whole financial industry including the major banks. In order to improve user protection, I will continue to take up the issue in the Diet.”
- Akahata, June 30, 2009
