July 8, 2008
Workers in nominal managerial positions who are forced to endure excessively long working hours without overtime pay are rising in action to eradicate the lawlessness in labor practices.
In Japan, the Labor Standards Law requires employers to record their employees’ working hours and to pay for their overtime work. But those who are assigned to “managerial positions” are forced to work overtime without pay.
In order to avoid having to pay for overtime, many employers assign workers to nominal managerial positions.
“Nominal managers,” who worked for McDonald’s Japan, menswear retailer Aoyama Trading Co., and discount shop chain “SHOP 99,” have joined unions and filed lawsuits demanding that the companies pay for overtime work in back pay.
Following the January ruling, which ordered McDonald’s Japan to pay overtime to a store manager, McDonald’s in May announced that it will pay overtime to store managers. In this scheme, overtime pay will be funded by eliminating allowances attached to managerial posts, and overtime work should be done with permission in order to reduce the cost to near zero.
Some critics say, “The new scheme will decrease wages.” Others say, “Overtime without pay will increase.”
McDonald’s has been obliged to retract its proposal of the elimination of allowances for managerial posts and to begin to pay them for overtime work from August.
The major menswear store Aoyama Trading Co. from April started to pay overtime not only to store managers but also to section chiefs at the head office and paid 1.2 billion yen in back pay for up to two years of past overtime work.
Discount shop chain “Shop 99” in May was obliged to announce a decision to pay overtime.
The Labor Ministry in April issued a directive to the labor standards bureau ordering stricter monitoring and guidance of employers regarding the continued labor practices treating workers without practical authority as “managers.”
In Japan, the Labor Standards Law requires employers to record their employees’ working hours and to pay for their overtime work. But those who are assigned to “managerial positions” are forced to work overtime without pay.
In order to avoid having to pay for overtime, many employers assign workers to nominal managerial positions.
“Nominal managers,” who worked for McDonald’s Japan, menswear retailer Aoyama Trading Co., and discount shop chain “SHOP 99,” have joined unions and filed lawsuits demanding that the companies pay for overtime work in back pay.
Following the January ruling, which ordered McDonald’s Japan to pay overtime to a store manager, McDonald’s in May announced that it will pay overtime to store managers. In this scheme, overtime pay will be funded by eliminating allowances attached to managerial posts, and overtime work should be done with permission in order to reduce the cost to near zero.
Some critics say, “The new scheme will decrease wages.” Others say, “Overtime without pay will increase.”
McDonald’s has been obliged to retract its proposal of the elimination of allowances for managerial posts and to begin to pay them for overtime work from August.
The major menswear store Aoyama Trading Co. from April started to pay overtime not only to store managers but also to section chiefs at the head office and paid 1.2 billion yen in back pay for up to two years of past overtime work.
Discount shop chain “Shop 99” in May was obliged to announce a decision to pay overtime.
The Labor Ministry in April issued a directive to the labor standards bureau ordering stricter monitoring and guidance of employers regarding the continued labor practices treating workers without practical authority as “managers.”
