Nakano: Protect subcontractors from negative consequences

May 17 , 2018

Nakano calls for more protection for smaller businesses at the Lower House on May 16Nakano calls for more protection for smaller businesses at the Lower House on May 16

In the House of Representatives Committee on Health, Labor and Welfare held on May 16, Komeito’s Hiromasa Nakano called for harsher sanctions against larger corporations that demand smaller subcontractors provide goods and services at unfair prices. Nakano recommended that the Ministry of Economy, Trade and Industry further empower its enforcement agents to crack down on what is known here as “subcontractor bullying.”

To ease working hours for their own employees and avoid incurring resulting losses in business, some conglomerates have been exploiting their ties with smaller suppliers by passing costs down the supply chain.

Nakano praised the work the ministry’s “G-men” to date and, in response to his call, the Small and Medium Enterprise Agency stated it will be increasing the number of agents from 80 to 120.