The Kyushu office of the Fair Trade Commission reported there were 251 cases in the seven regional prefectures of parent companies violating the laws governing payments to subcontractors, such as intentionally making late payments. This is an 18.4% jump from the previous year’s total of 221 cases, and the highest number since records began being kept in 1971. One common example was auto parts makers sending insufficient amounts to subcontractors and calling them “discounts”. The commission thinks that poor economic conditions will cause the number instances to rise even further.
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- Sharp Rise in Violations by Parent Companies