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HOME  > Past issues  > 2016 March 23 - 29  > More than \100,000 in annual wages of part-timers might not be calculated at 7-Elevens
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2016 March 23 - 29 [LABOR]

More than \100,000 in annual wages of part-timers might not be calculated at 7-Elevens

March 29, 2016
Japanese Communist Party member of the House of Councilors Tatsumi Kotaro on March 28 at a House Budget Committee session accused the largest chain of convenience stores Seven-Eleven Japan of using a time-control system which enables Seven-Elevens to not pay part-timers more than 100,000 yen in annual wages.

Seven-Eleven Japan adopts a unique network system at each store called the Store Computer (SC) dealing with information such as POS data and the number of hours workers work. The system rounds up/down part-timers’ starting and ending times of work up to the nearest 15 minutes.

For example, Tatsumi said, if a worker who earns an hourly wage of 900 yen works 20 days a month or 240 days a year, this person will not be paid up to 100,800 yen a year. “This amounts to the very wage theft,” the JCP Dietman criticized.

Citing Article 24 of the Labor Standards Act stipulating, “Wages shall be paid in currency and in full directly to workers,” he argued that the rounding up/down of time worked is illegal.

The Seven-Eleven Japan headquarters has the SC system as a basis of its business. Franchise owners have no choice but to use this system. Many family-run 7-Eleven store owners are suffering from the very high royalties they must pay to the headquarters. Tatsumi stated that to make part-time workers pay for the SC system and high royalties with lost wages is inappropriate.

He said, “Most likely, other major chains of convenience stores employ a similar method,” and demanded that the central government conduct a survey of the actual situation and take measures to prevent illegal labor practices.

Labor Minister Shiozaki Yasuhisa stated, “Working hours must be accurately counted to the minute. Rounding down is a violation of the Labor Standards Act.”

Past related articles:
> Labor dispute board orders convenience store chain to hold collective bargaining with franchise owners [April 17, 2015]
> 'Nominal' managers call for eradication of illegal labor practice [May 20, 2008]
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