Overview
- The Japan Fair Trade Commission on Thursday concluded that crane maker Tadano made subcontractors store 314 molds free of charge and carry out 173 unpaid inventory checks, ruling those practices broke the subcontracting law.
- During its probe Tadano unilaterally paid about ¥335,0000 in storage fees to 22 suppliers but those firms said the amount was insufficient, and the commission has ordered Tadano to negotiate with suppliers and make any additional payments required.
- Tadano told investigators it had recognized free storage as a problem but left it in place because it was time-consuming to fix, and the company said it will promptly implement the commission's requested measures and strengthen compliance.
- The case is notable because Tadano is Japan's leading construction-crane maker with ¥188.392 billion in single-year sales and global operations, and the commission's recommendation is reported to be the first of its kind for a Kagawa-prefecture headquarters firm.
- Subcontractors say unpaid storage and inventory work reduced their sales and raised costs, and the commission's action could push other large manufacturers to change long-standing practices if it forces negotiated payments and concrete prevention steps.