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Seven-Eleven failed to pay some overtime wages to at least 30,000 employees for years

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We can absolutely trust a large corporation when it says that wages weren’t paid by mistake. We can absolutely trust a large corporation when it says such an issue wasn’t disclosed for 18 years by mistake.

19 ( +22 / -3 )

Yeah, and they want to stick it to their franchise owners to stay open 24/7 no matter what!

In my opinion, with this disclosure here, it should be a criminal case!

22 ( +23 / -1 )

but it has neglected to make the lacking payments or publicize the matter.

Sure sounds like the "mistake" was deliberate.

20 ( +21 / -1 )

It would be interesting to get a report of a company overpaying wages some time...

14 ( +15 / -1 )

Scum, oh we "acidendtely" forgot to pay staff for working? Come on! Meanwhile shareholders profits soared. Abenomics at its best.

13 ( +15 / -2 )

8,129 stores nationwide and resulted in unpaid wages totaling as much as 2.8 million yen for one employee.

Effecting 30 thousands employee from 2001! Even franchisee notice that and try to raise this issue, big franchise owner just would ignore until they realize this internally.

8 ( +8 / -0 )

due to a miscalculation in the convenience store chain's payroll system.

I'll have to remember that one.

12 ( +12 / -0 )

7-11 is just doing what most companies in Japan do in regards to not paying employees.It's called "service zangyou." Personally I feel it's despicable.

13 ( +15 / -2 )

Seven-Eleven failed to pay some overtime wages to at least 30,000 employees for years

The equation in question had been used by the firm since October 2001, although records only exist from March 2012 onward

Years? It's been decades then. They do this from 2001 but since they only have records from 2012 they only can pay unpaid overtime employee that listed from 2012 of course unless people who work from 2001-2011 can prove themselves.

7 ( +8 / -1 )

miscalculation

Sure. Many companies fail to pay 30,000 people over years by a "miscalculation."

An issue such as this spanning back decades is not a miscalculation. This is clear indication of a corporate culture. I'm sure, since the 1970's, the system has undergone numerous upgrades and changes. So the fact that this issue was a mainstay means it's the corporate culture rather than a miscalculation.

9 ( +10 / -1 )

How many of the underpaid employees have died?

2 ( +4 / -2 )

18 years! That's a deliberate theft! The company and its president should be fined or go to jail. This is not a small-time theft. This a grand theft.

11 ( +12 / -1 )

re: article: Japan's largest convenience store chain also said the miscalculation was discovered in a probe at one of its franchisees by the government's Labor Standards Inspection Office in 2001, but it has neglected to make the lacking payments or publicize the matter, the company said. The amount of overtime wages that went unpaid due to an error in the algorithm used for wage calculation totals at least 490 million yen ($4.5 million), according to the company. "I deeply apologize for the undisclosed cases in 2001 which should have been compensated and announced" as well as for those recently found to be underpaid by another inspection by the labor authority, Seven-Eleven Japan President Fumihiko Nagamatsu

re; Comment: Yeah, and they want to stick it to their franchise owners to stay open 24/7 no matter what!

In my opinion, with this disclosure here, it should be a criminal case!

Concur, this should be a criminal case per the article, was discovered by a Government office in 2001 and no steps were taken to pay back nor make the issue public. The company knowingly kept it a secret and simply did not oblige in payouts. An apology while "courtesy" does not mean anything without real substance in this case the money they owe, a massive discount to the public for this embarrassment, well not that far but a payout for sure tot he employees or surviving family members. However because a company knowingly kept this somewhere someone needs to go to prison for slavery practices in not paying someone for services rendered.

7 ( +7 / -0 )

Wow just, WOW! Even for Japan this is a real biggie!

Company gets CAUGHT, fails to fix "problem", govt then FAILS to get 7-11  to "fix" the "problem".

And this drags on & on &  on for almost 2 decades WTF !!!!!!!!

And note the "convenience" that records 2012 & prior no longer exist.... brings a whole meaning to CONVENIENCE store don't it!!

This is super disgusting!

11 ( +12 / -1 )

And another big company to add the the immense pile of scandals in Japan. Honestly, im not surprised anymore, everyone has some sort of scandal. And this is only the reported ones, imagine how many are still covered up.

12 ( +13 / -1 )

I'm sure, since the 1970's, the system has undergone numerous upgrades and changes.

Sure, they have Excel 2003 now.

2 ( +2 / -0 )

490 mio. Yen divided by 30000 employees is only 16333 Yen per employee. Over a span of 18 years makes 907 Yen per year per employee on average. Did any of these 30000 employees within these 30 years ever notice? Maybe not if the difference is so minimal.

0 ( +2 / -2 )

Took a decade for the Ministry of Labour Standards to actually do anything and not much at that. Their job is to protect and hold a standard of complience yet like most things in Japan usless and expensive.

2 ( +3 / -1 )

The company itself should be fined 490 millions yen for punishment, equal to the amount it stole as well as cut the salary of the president by not just 10% but 50% for a period of 18 months, representing at least the 18 years (probably more) it failed to pay the overtime.

2 ( +4 / -2 )

Criminal.

3 ( +4 / -1 )

Japanese company makes a "mistake" and fails to pay employees adequately.

In other news, water is wet.

1 ( +4 / -3 )

Oh, so this is in Japan, right? Eyebrows raised, not!

2 ( +4 / -2 )

re: Article: The amount of overtime wages that went unpaid due to an error in the algorithm used for wage calculation in the convenience store chain's payroll system.

Wages of part-time workers are paid by the franchise store owners, but wage calculations, the issuance of paychecks and bank transfers are carried out by Seven-Eleven's headquarters.

Why would the algorithm be different for payroll/wages for franchise employees vs company employees?

3 ( +3 / -0 )

Pay up...with interest please.

4 ( +4 / -0 )

The 'miscalculation' was being caught...as always!

3 ( +3 / -0 )

the miscalculation was discovered in a probe at one of its franchisees by the government's Labor Standards Inspection Office in 2001 - Slip sliding Labor Standards officials will say, we are only mandated to inspect not enforce. So, what we have is a corrupt gov't agency inspecting a corrupt private company.

The company said Nagamatsu will voluntarily cut his monthly remuneration by 10 percent for three months to take responsibility for the matter. What a magnanimous gesture - nominate him for a Nobel!

6 ( +6 / -0 )

And Japanese don't get angry and remain passive to those facts...

Heads should roll but 10% pay cut is enough (which is nothing, this money can be recovered right after with adapted bonus lol)

5 ( +5 / -0 )

Seven-Eleven will try to reimburse all the unpaid wages.....

You don't TRY, you DO!

although some workers are no longer employed, many records are missing and some stores have already been closed.

oh really? That still doesn't mean those people have been compensated at all.

It is a 2 sided deal though, employees should keep track of their hours logged and money owed. Oh well, life goes on I guess. Will any of this be fixed at all?

4 ( +4 / -0 )

Rampant capitalism just doing what it always has done - exploiting the workers.

Disgusting.

4 ( +5 / -1 )

Do they ever overpay? Lol. Probably not....

5 ( +5 / -0 )

This place has been known as a "black kigyo" almost since it opened. Unfortunately, in Japan those who have been aggreived by employers or corporations cannot lodge class-action or collective redress lawsuits, even in the case of product defects.

5 ( +5 / -0 )

In a civilized and self conscious society such kind of actions are called slavery.

5 ( +5 / -0 )

搾取 (exploitation) is a strong word the Japanese are loathe to employ. Capitalism means never having to say you're sorry 'cos even when you have laws with some teeth, there is no enforcement. "Do the crime, do the time" is strictly for chumps.

2 ( +2 / -0 )

It would be interesting to get a report of a company overpaying wages some time.

You would need an electron microscope to find one.

3 ( +3 / -0 )

7-11 are serial offenders, same thing happened in oz. The ABC's four corners program investigated the matter a few years ago; 7-11 had been ripping off, underpaying, blackmailing etc employees for years. Got caught, same bs apologies and 'compensation'. Absolute grubs

4 ( +4 / -0 )

And they wonder why they can't get enough employees to work for them?

4 ( +4 / -0 )

Wow, what is bullying coming to in Japan ???.

0 ( +0 / -0 )

Didn't Excel have an issue with date-based calculation in 2014? I thought Excel 2003 or 2007 fixed those issues.

The company needs to be fined at least 3x the unpaid wages AND make restitution of 15% penalty/year to each individual harmed. If the individual has died, then to the families.

Jail time for the CFO and above are needed too. Perhaps 6 months? Enough to make it clear to other companies that even attempting this has personal repercussions, not just corporate.

2 ( +2 / -0 )

Franchises make no sense to me. As a franchisee, You pay for the land, you pay for the construction, you pay the workers, and you pay for the supplies. The franchise corporation takes some of that money for letting you use their name. That's it. I should start a franchise corporation. Money for nothing and cheques for free.

1 ( +1 / -0 )

That's sad for the employees. Doing the right thing is so out of style everywhere, not just Japan.

But, I always liked Seven-Eleven. Great coffee and the best food of all the conbini's!

0 ( +0 / -0 )

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