Shimano addresses subcontractor storage violation
Shimano has released a press release addressing a formal recommendation Japan's Fair Trade Commission issued to it on 17 September, finding the company violated the Subcontract Act by having subcontractors store Shimano-owned moulds and equipment for free and conduct inventory checks despite long gaps without orders.
Investigators said that since 1 December 2023, Shimano's subcontractors held 4,313 tools at no charge and performed twice-yearly inspections, "thereby unfairly harming the interests of its subcontractors."
Shimano said in a press release that "We sincerely apologise for any concern or inconvenience this has caused," and said it is compiling cost estimates from affected contractors, has begun payments, and will "review internal compliance training and strengthen our verification systems."
This addresses JFTC recommended remedies, which included reimbursing storage and inspection costs, a board resolution acknowledging the violation, notifying suppliers, employee training, and a report on corrective measures. The investigators said Shimano had already retrieved or ordered the disposal of 468 tools from 42 suppliers by late 2024.
