Hokkaido The president of the operating company of Gyomu Super runs off with the salary funds of employees, leaving them to run the stores independently.
The president of a company that operates a franchise (FC) store of “Gyomu Super” has withdrawn money that was meant to pay employees’ wages from the company’s deposit account without permission and has then disappeared without a trace, raising the possibility that wages will not be paid. According to the labor union, the president was receiving executive compensation of several million yen each month, but repeatedly misappropriated company funds for personal use, worsening the company’s management, and leading to the reduction of employee bonuses and the company’s bankruptcy. Following the president’s abdication of company funds, an unusual situation has arisen in which employees have taken it upon themselves to manage and operate the stores in order to secure funds to pay their salaries. The commotion is taking place at a franchise store management company that runs a total of seven Gyomu Super stores in Hokkaido, including the Susukino Tanukikoji Store, Tomakomai Store, Tomakomai Higashi Store, Muroran Store, Iwamizawa Store, Takikawa Store, and Asahikami Store. According to the labor union, the company president had previously purchased foreign cars using company expenses, used a housekeeping service for his home, and used taxis for personal use. Due to the company’s worsening cash flow, the president tried to cut employee bonuses, which led to employees forming a labor union in February of this year. During negotiations, the company explained that “our cash flow has worsened, so we want to declare the company bankrupt,” and “we would like to lay off our employees as a result, so we ask for your cooperation.” “The union is trying to get the workers to leave,” said Suda Mitsuteru, secretary-general of the Tokyo Eastern Labor Union, which supports the union. “Since the past, the company’s management and on-site operations have been run solely by employees, so the employees have been demanding that all executives step down and hand over management to them, but the president has shown an attitude of refusing. And although the Gyomu Super business itself is generating sales and profits, its management is deteriorating as profits are being sucked up by high executive salaries and the losses of the food import business, which is continued at the sole discretion of the president. That is why the union went on strike. Incidentally, even while collective negotiations with the union are ongoing, the president has been contacting individual employees by email, saying things like, ’We’ll give you a bonus, so please cooperate,’ which is a violation of the Labor Union Law.”
Employees may not be paid
To protest the company’s response, employees will go on strike at the seven stores mentioned above from the 18th of this month. Amidst all this, with payday on the 25th looming, the president reportedly withdrew almost all of the funds in the company’s account and has since gone missing. Mr. Suda, mentioned above, says: “The labor union has sent a letter of demand to the president asking him to commit to paying the wages, but it has been ignored, and there is a possibility that employees will not be paid. As a result, employees called off the strike to secure funds for their salaries and resumed store operations on the 24th. However, because the president unilaterally informed the Gyomu Super headquarters of his intention to file for bankruptcy, deliveries of goods from headquarters have stopped, and the store may be forced to close again if the stock runs out. Furthermore, if wages are not paid by the 25th, we will consider taking legal action, including filing criminal charges.” Source below.
Young people today probably don’t know this, but when I was a kid, there were a lot of commercials that went “Hey, hey, Hokkaido! Hokkaido oh oh oh!” promoting Hokkaido as a peaceful countryside.
I don’t know how much money the company has left, but it seems like just dealing with the accounts payable would be a huge challenge. I wonder if they have experts on the team.
Seven stores, including the “Susukino Tanukikoji Store” (Sapporo City), are operated by “Kehiko” (Yokohama City), a subsidiary of S International, which handles food imports and exports. According to another article, the mastermind is Yokohama.
Won’t the president just run off with that sales revenue too? Is it okay under corporate law for employees to do as they please? Does it seem like the executive team is functioning properly?
>>36 Isn’t the least Kobe Bussan can do to terminate the franchise agreement? Normally they would use that to intervene as a sort of threat, but in this case it’s pointless.
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