Current location:health >>
EDITORIAL: Nissan rebuke shows preying on suppliers still exists in Japan
health69938People have gathered around
IntroductionNissan Motor Co. has been unilaterally reducing its payments to numerous subcontractors in the illeg ...
Nissan Motor Co. has been unilaterally reducing its payments to numerous subcontractors in the illegal squeezing of suppliers.
The auto giant has been committing this exploitative act for many years. Such a business practice of exploitation by large companies leveraging their strong positions as contractors to impose their will on subcontractors is inexcusable.
Nissan must clarify the responsibility of its management for the violation and rid itself of “subcontractor bullying.”
Last week, the Fair Trade Commission issued a cautionary notice to Nissan calling on the company to take steps to prevent a recurrence. Nissan was found to have violated the subcontract law for unilaterally reducing the payment amounts from the originally agreed prices under the guise of “rebates.”
According to the antitrust watchdog, over a period of about two years until last spring, Nissan reduced the amounts due to 36 subcontractors, including makers of aluminum wheels, by more than 3 billion yen ($20.3 million).
This is the largest case of the kind uncovered by the FTC. This practice of coercive price-cutting to meet Nissan’s cost reduction targets has been ongoing since at least the 1990s.
As a major automaker, Nissan stands at the apex of a pyramid-like subcontracting structure, generating enormous profits as the beneficiary of this setup. It is responsible for ensuring that costs are fairly reflected in prices within its supply chain.
If the company unjustly siphoned profits from its small and midsize suppliers, that was an utterly indefensible act.
Nissan President Makoto Uchida apologized at a March 13 news conference for his company’s violation of the subcontract law. Nissan should review its past and current transactions with subcontractors to identify instances of forced price reductions and clarify responsibility.
It is true that the competitive strength of Japan’s automotive industry has been supported by relentless cost-cutting efforts by both car manufacturers and their suppliers.
However, such efforts must be based on an equitable relationship between automakers and their subcontractors and the benefits should be shared fairly according to the contributions.
Nissan’s exploitation of subcontractors is clearly unacceptable. However, subcontractors are generally in weak positions because they risk massive damage if they lose business dealings with key customers and find it difficult to resist demands for cost reductions from these major clients.
Therefore, businesses placing orders with suppliers have a duty to continually confirm the fairness of their transactions. Nissan’s chief executive should demonstrate the company’s solid commitment to this principle both internally and externally.
The government’s guidelines concerning the issues published last year also call on chief executives to clearly pledge to allow subcontractors to pass along higher costs in the prices.
Shifting burdens onto subcontractors has been one of the factors inhibiting wage increases among small and midsize enterprises.
The goal of realizing the virtuous economic cycle of rising prices and wage hikes, the principal focus of this year’s “shunto” spring labor negotiations, remains elusive without the widespread adoption of fair cost pass-throughs.
Profit generation through cost-cutting has been the primary corporate mantra in Japan for years as the nation’s economy was trapped in deflationary doldrums, but sustainable growth is unattainable if burdens are pushed onto subcontractors and workers.
Alongside wage increases and proactive investments, it is urgent to ensure compliance with laws and improve business practices. The FTC, for its part, must also intensify its monitoring to eradicate the unfair and abusive practice of squeezing subcontractors.
--The Asahi Shimbun, March 14
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“Global Gazette news portal”。http://reunion.allesfuersjagen.com/html-02b499971.html
Related articles
Hospital operator Steward Health Care files for bankruptcy protection
healthBOSTON (AP) — Hospital operator Steward Health Care filed for bankruptcy protection early Monday mor ...
【health】
Read moreMick Byrne appointed head coach as Fiji targets Nations Championship
healthWELLINGTON, New Zealand (AP) — Drua head coach Mick Byrne has been hired to guide the Fijian nationa ...
【health】
Read moreChina home to 47 UNESCO Global Geoparks
healthA child poses for photos at the Tianchi lake on the Changbaishan Mountain in northeast China's J ...
【health】
Read more
Popular articles
- Rotting bodies and fake ashes spur Colorado lawmakers to pass funeral home regulations
- Suggestions made by Chinese lawmakers move toward implementation
- Taiwan body donates cultural relics to national heritage administration
- Overseas hanfu clubs serve as cultural ambassadors
- Trump's strategist push AI to help conservatives, all you need to know
- Hong Kong's top talent scheme approves 59,000 applications
Latest articles
Top clubs urge Brazil's soccer federation to suspend league matches because of flooding
Retail sales surge 0.7% in March as Americans seem unfazed by higher prices with jobs plentiful
'Love in Nanning' concert unites singles for a romantic evening
Ancient tomb unveiled: discoveries from Western Zhou Dynasty
Here's where Biden and Trump stand on 10 key issues
Death toll from Moscow terror attack rises to 93
LINKS
- Michigan gets 3 years of probation for football recruiting violations
- Fury as police barricade entrance to right
- Blake Griffin retires after a high
- It was one of the most joyous
- British woman, 38, 'is raped by 20
- 'Rust' movie armorer sentenced to 18 months for fatal shooting by Alec Baldwin
- BYU hires Suns assistant Kevin Young to replace Mark Pope, who left to coach Kentucky
- Treasurer denies South Carolina Senate accusation he risked cyberattack in missing $1.8B case
- The Sky added plenty of star power in the WNBA draft with Kamilla Cardoso and Angel Reese
- The push for school choice in Nebraska is pitting lawmakers against their constituents