Japan FTC Warns Logistics Biz over Subcontract Law Breaches

Osaka, Dec. 12 (Jiji Press)–Japan’s Fair Trade Commission on Friday urged Osaka-based logistics business Senko Co. to prevent any recurrence of its practices that allegedly violated the subcontract law. The FTC found that the core unit of Senko Group Holdings Co. requested unreasonable economic benefits from subcontractors, a practice prohibited under the law, by making them load and unload freight without paying fees. It was the first FTC warning issued over such practices. From December 2022, Senko had 36 subcontractors load and unload freight or wait for loading and unloading work to finish, all without paying fees, according to the FTC. In some cases, workers were kept waiting for over two hours during loading and unloading. The antimonopoly watchdog also ordered Senko to compensate the affected companies for their work in amounts equivalent to what they were supposed to receive. In the logistics industry, there are concerns about a decline in transportation capacity due to the so-called 2024 issue, or truck driver shortages after overtime regulations for truck drivers were strengthened in 2024. The commission is stepping up surveillance of businesses to ensure that subcontractors do not suffer disadvantages, given their weak position compared with large companies. In a statement released Friday, Senko said it will make efforts to further strengthen legal compliance and prevent the practice from recurring. END [Copyright The Jiji Press, Ltd.]