Japan FTC Warns Zipper Giant YKK over Subcontract Law Breaches

Tokyo, June 23 (Jiji Press)–Japan’s Fair Trade Commission on Tuesday urged major zipper maker YKK Corp. to prevent a recurrence of subcontract law violations, alleging that it paid unfairly low fees to subcontractors. According to the FTC, YKK unilaterally set fees for 49 tasks, including zipper processing and inspection, outsourced to 21 subcontractors in Toyama Prefecture, central Japan, between July 2023 and November 2025. Using a method that differed from explanations given in advance, YKK reduced the unit prices by setting the number of operations that could be completed in an hour higher than was actually possible. The lowest unit price was just 27.5 pct of the appropriate level. More than 70 pct of the 49 tasks stood at rates below the prefecture’s minimum wage level. Although eight subcontractors requested higher fees in 2023, YKK failed to take sufficient corrective action. In response to the FTC’s investigation, YKK raised the rates and paid some 26 million yen in back payments to the subcontractors, retroactive to 2023. In a statement, YKK said it takes the FTC’s action seriously and will promptly review employee training and strengthen its compliance checks to ensure full adherence to the law and prevent a recurrence. END [Copyright The Jiji Press, Ltd.]