An investigation by the Fair Trade Commission uncovered a disturbing pattern of mistreatment and bullying towards subcontractors by Bigmotor Co., a used-car dealer and repair chain in Japan. The FTC officials were appalled by the severity of the allegations and the lack of proper documentation within the organization regarding the demands made on subcontractors. The unprecedented nature of the violations led the FTC to issue numerous complaints against Bigmotor Co., reflecting the magnitude of the company's transgressions.
Yoshifumi Kanno, a senior subcontracts inspector at the FTC, highlighted the challenges faced during the investigation due to the scarcity of physical evidence and witness testimony. Kanno emphasized that Bigmotor Co. prioritized its own interests excessively, leading to a severe lack of corporate governance and a widespread breach of subcontractors' rights. The company's failure to keep adequate records not only hindered the investigation but also resulted in a lack of accountability and transparency regarding its business practices.
The FTC's discovery of multiple violations by Bigmotor Co., including unilateral payment cuts to subcontractors and unjust demands for vehicle purchases, shed light on the unethical behavior and disregard for legal boundaries exhibited by the company. Furthermore, the coercive practices of forcing employees and their families to undergo inspections at Bigmotor outlets and perform unpaid cleaning duties exposed the exploitative nature of the company's dealings with subcontractors. The revelations of improper instructions and the deletion of crucial communication records added another layer of deceit and non-compliance with subcontracting laws.
In response to the investigation findings, the FTC ordered Bigmotor Co. to establish an outside panel of experts to further delve into the mistreatment of subcontractors and mandated regular reporting to ensure accountability and compensation for any losses incurred. With this unprecedented recommendation, the FTC aims to address the severe violations uncovered and hold Bigmotor Co. accountable for its unacceptable treatment of subcontractors.