There has been a new development in a scandal involving a large company that also has implications for corporate wage increases. In response to the issue of Nissan Motor Company unfairly reducing payments to subcontractors, the Fair Trade Commission has recommended that Nissan take steps to prevent a recurrence. The unfair reductions total more than 3 billion yen, the largest amount ever for a similar violation. Toda Shunsuke, a reporter in the Economic Affairs Department and Ministry of Economy, Trade and Industry, explains the background to the illegal transactions and the problems involved. Read the article on this video > https://news.ntv.co.jp/category/econo... ■ Nissan's "illegal transactions" may have become a custom Takahiko Fujii, anchor: "This issue came to light at Nissan, but why was this illegal transaction taking place?" Shunsuke Toda, reporter for the Ministry of Economy, Trade and Industry, Economic Affairs Department: "In the Fair Trade Commission's recommendation, it became clear that this transaction had been taking place within Nissan for more than two years since 2021. In other words, it is possible that for more than two years, the fact that it was an illegal transaction did not occur to those on the ground, and it had become a custom. A Nissan insider said, "Since this transaction was agreed upon with the subcontractor, there were probably very few people in the company who recognized that it was a problem until it was pointed out." There are also voices from the Fair Trade Commission pointing out Nissan's lax attitude toward compliance with laws and regulations, such as, "Nissan is too lax for such a large company," and "We wish they had taken action before we pointed it out." ■The "pyramid structure" is deeply rooted in the automobile industryFujii: "What is the background behind the occurrence of this problem at a major corporation like Nissan, and at an automobile manufacturer?" Toda: "The pyramid structure between manufacturers and subcontractors is particularly deeply rooted in the automobile industry, and it is an environment in which subcontractors find it difficult to speak up to manufacturers. Manufacturers need to be very conscious of this and respond more carefully and with more consideration. For this reason, a senior official at the Ministry of Economy, Trade and Industry, which handles automobile policy, has also criticized the current problem, saying, "This is something that should never have happened, and Nissan has no excuses." Nissan, as a global company, will be required to conduct a detailed investigation and provide an explanation in the future. Kobayashi, chairman of the Japan Chamber of Commerce and Industry, which represents small and medium-sized enterprises, also said the following: Japan Chamber of Commerce and Industry Chairman Kobayashi Ken: "The act of demanding price reductions after the fact is extremely regrettable. We must take this opportunity to have the top management step forward and think seriously about this." ■"Subcontractor bullying"? Keidanren also calls for fair trade, but... Anchorman Fujii: "Nissan officials reportedly said that 'it was something that was agreed upon with the subcontractor,' but this could amount to subcontractor bullying by a large company, and has been seen as a problem." Reporter Toda: "The Fair Trade Commission, as well as the Japan Business Federation, have called on large companies to charge fair prices in transactions with subcontractors in order to escape prolonged deflation and increase momentum for wage increases. Despite this, transaction prices were reduced through illegal means for over two years. This is the big problem this time. The importance of fair trade with subcontractors Fujii: Fair trade is a given, but what kind of problems would arise if fair trade was not carried out? Toda: About 70% of workers in Japan work for small and medium-sized enterprises, and if small and medium-sized enterprises cannot raise wages, Japan's economy will not improve. A senior official at the Ministry of Economy, Trade and Industry emphasized that this case will be an opportunity to reconsider their trading relationships with subcontractors. In other words, this issue is a great opportunity for large companies to recognize the importance of fair trade with subcontractors. For this reason, the Fair Trade Commission has also made a positive statement, saying, "We hope that this case will serve as an opportunity for not only Nissan and the automotive industry, but all industries to tighten their belts and conduct fair trade. We hope that this will lead to wage increases." (From "news every." broadcast on March 7, 2024) 📌Subscribe here / @ntv_news ◇Nippon Television News Department SNS X https://x.com/news24ntv TikTok / ntv.news Facebook / ntvnews24 Instagram / ntv_news24 ◇【Latest news LIVE broadcast】NTV NEWS NNN HP https://news.ntv.co.jp #Violation of the Subcontract Act #Nissan #Recommendation #Fair Trade Commission #NTV #newsevery #News