Machinery Maker Ebara Warned over Subcontract Law Breaches
Tokyo, Feb. 20 (Jiji Press)--The Japan Fair Trade Commission on Thursday warned major machinery maker Ebara Corp. for receiving unfair economic benefits from subcontractors in violation of the subcontract law.
According to the commission, Ebara, which is listed on the Tokyo Stock Exchange's top-tier Prime section, had 176 subcontractors store a total of about 8,900 tools for making water pumps, including metal and wooden molds, without paying them.
The unpaid services began in 2004, and some subcontractors rented warehouses to store the tools.
This is the largest case of such a violation recognized by the JFTC. Over similar cases, the watchdog warned a Nissan Motor Co. subsidiary and a Toyota Motor Corp. affiliate on Tuesday.
According to the watchdog, Ebara said that it had responded to payment requests from subcontractors, but one subcontractor said that it was a long-standing business practice not to charge for the storage of tools.
(2025/02/20-19:26)
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