The Maruha Nichiro Group has included “Respect for human rights in business operations” in its materiality that it reviewed in 2022. We have exchanged opinions with external experts with specialized knowledge on issues such as labor practices and human rights violations that may occur in the Group and in the marine products industry in the course of conducting our business.
Satoshi Kokaji
Managing Executive Officer, In charge of Production
Management Department and Directly Managed Plants, Director of Processed Foods Business Segment, Maruha Nichiro Corporation
Ryusuke Tanaka
Programme Officer & External Relations and Labour Standards Specialist, International Labour Organization (ILO) Office for Japan
Mr. Tanaka has been involved in promoting international labor standards in the context of the SDGs, business, and human rights. He has given numerous talks for companies
Shoichi Ibusuki
Akatsuki Law Firm Co-President of the Lawyers’ Network for Issues Surrounding Foreign Technical Intern Trainees
Representative of Lawyers Network For Foreign Workers, Executive Member of the Labour Lawyers Association of Japan, admitted to the bar in 2007 (Daini Tokyo Bar Association)
Katsuhiro Adachi
Executive Officer In charge of Corporate Planning Department, Marketing Department, and Finance Department, Maruha Nichiro Corporation
Background and recognition of issues that led to the identification of significant human rights issues
Adachi:
In 2015, it was reported that our Group company in Thailand was using shrimps peeled by slave labor. In the end, it turned out that the report was mistaken and that the Group was not involved. However, criticism of Thai marine products intensified among Western countries and had a considerable impact on the Group, which was our first direct experience of human rights risks in business. Since then, we have adopted targeted measures such as formulating a human rights policy, conducting questionnaire surveys of suppliers, and establishing guidelines on the employment of technical intern trainees, etc. However, we have come to the conclusion that it is essential that we once again identify risks in a comprehensive manner, elucidate what we need to prioritize in addressing, and take action, and we have thus identified the risks inherent in our business as well as existing issues.
Human rights issues faced by migrant workers in Japan
Ibusuki:
With regard to technical intern trainees, there are many cases where their basic wage is set at just above the minimum wage, to which an unreasonably high deduction is applied, resulting in a take-home pay of 30 to 40 thousand yen. In many cases, they arrive in Japan after taking loans and paying a large amount of money in pre-departure expenses and referral fees to the sending organization, which makes this a form of bonded labor, and they cannot complain or quit regardless of what happens. Generally, the inability of intern trainees to change workplaces is the reason why this system has been internationally regarded as slave labor or forced labor.
In a case where a certain intern was subjected to daily abuse, the inability to leave the workplace for about two and a half years while praying for their own safety every morning was due to existing debts. A 2022 survey regarding labor standards found violations in 7,247 out of 9,828 businesses, yet only 145 reports were made. The principle of prohibiting workplace transfers exacerbates this enslaved situation, turning workers into individuals who cannot speak out. Furthermore, forced repatriation is illegal but often goes unaddressed, creating a fear that prevents victims from reporting or seeking help. Human rights violations are imposed by sending organizations, brokers, and receiving companies, including the forfeiture of penalties and guarantees, as well as repatriation or dismissal. There are also many cases where individuals are forcibly sent back due to pregnancy, and I occasionally receive SOS calls regarding these situations.
Challenges faced by companies employing intern trainees
Ibusuki:
For companies, the cost of accepting intern trainees is a heavy burden. In addition to an initial outlay of 500 thousand to 1 million yen per intern trainee and 30 to 40 thousand yen per month in upkeep costs, companies also pay for the renewal of residence status, trade skill tests, etc. While it is understandable that companies would not want trainees to be transferred elsewhere, the institutionalization of a transfer ban gives rise to the problem of trainees being unable to quit even if they encounter problems at the workplace. It has been said that around half of companies accepting technical intern trainees are companies with 10 or fewer employees, and there have been many cases of lack of proper labor management in the fisheries industry,as well as industrial accidents at manufacturing sites where major accidents occur shortly after employees join the company. In the event of a human rights violation, all parties involved should work together to find a solution that does not seriously damage the company’s image while restoring the rights of the intern trainee whose rights have been violated. I believe that a company that makes every effort to take action to remedy problems in the supply chain is one that fulfills its corporate social responsibility, which would allow the company to foster a positive corporate image.
Kokaji:
After conducting a questionnaire survey of business sites and on-site inspections, we have begun to implement the guidelines on the employment of foreigners such as technical intern trainees from this year onward. We would like to improve the system while reviewing the implementation status of the guidelines at each business site. It is imperative that each business site is able to operate autonomously based on the situation on the ground, so we will also focus on putting in place an education system that includes training. With regard to the issue of debt, our biggest challenge is to address the principle of employer payment. We would like to search for local NGOs and establish relationships with co-creation partners while seeking advice from supervising organizations and experts. We will also consider joining NGOs and other organizations that support victims in seeking redress, as relief mechanisms without multilingual points of contact remain an urgent issue.
Issues facing Japanese companies, the disparity between Japanese and international standards, and forced labor in the fisheries and food industries
Tanaka:
Given the structural challenges of society and the need to pursue profits, it is easy to lose sight of the purpose of performing human rights due diligence. I believe that workers will follow suit if there is a positive vision of not only addressing issues with a negative impact on human rights but also creating attractive workplaces throughout the value chain, which would attract a large number of workers and make Maruha Nichiro’s entire commercial distribution more sustainable. Guidelines are often used to ensure that there are no problems but may not always be able to detect and rectify issues such as forced labor in practice. I believe the starting point for dialogue with society is to listen to feedback from workers, understand the needs of them, and disclose any progress that has been made with regard to initiatives.
Recently, the fishing industry has come under intense scrutiny. Due to numerous challenges related to decent work*1, the ILO has adopted Fisheries Convention 188. This convention addresses issues such as high levels of child labor, debt problems, forced labor of migrant workers on the high seas, conditions of on-board accommodation and food, occupational health and safety standards, and access to medical care. The need for remedies, such as being able to consult a doctor via satellite communication in case of illness, is also mentioned in the convention, highlighting the importance of being able to access remedies through familiar means like cell phones. Regarding business relationships with suppliers, I urge you to consider what happens to victims once transactions are severed solely due to human rights risks. It is essential to create positive incentives where employees who identify issues are recognized, those on the front lines monitoring human rights are encouraged, and efforts are concentrated on enhancing the value of the entire value chain.
Adachi:
I realized that it is important to have a step-by-step approach to achieve happiness for people along the supply chain, and to understand the current situation. We need to consider how exactly we should work on frameworks and auditing methods that ensure that relief mechanisms extend to every single foreign worker.
Tanaka:
It is important to look at the facts from the standpoint of each individual worker. It would be useful to focus on areas that would pose a risk to the reputation of the entire fisheries industry if identified, such as IUU fishing hot spots on the high seas beyond the reach of flag state governance, while seeking the cooperation of NGOs and other organizations that conduct third-party audits. In establishing relief mechanisms, it is vital to have effective tools that are accessible to workers on board vessels or at plants whenever such tools are required, as well as an environment where they are encouraged to speak up and ask for help. Improving transparency along the supply chain can be a challenging task, but the important thing is to make every effort to get as close as possible to sites with risks in order to detect human rights risks, and that management is able to analyze and communicate the relevant facts to the outside world even if there are structural challenges standing in the way.
Ibusuki:
The consultation hotlines announced through companies take time to earn the trust of workers, so reports are still quite few. I think there's a fear of being betrayed. However, when there is a case example, there’s much to learn from it. When issues arise, everyone involved becomes agitated; the company wants to resolve things quietly, while we, backed by the media, try to ensure our voices are heard. This makes constructive discussions difficult, but both sides can learn as they aim for resolution and remedy. I believe we can grasp the reality by delving deeply into the situation. It’s crucial to approach this calmly, including media involvement, and explore the issues thoroughly.
Kokaji:
If we assume there are no issues, no change will occur. Even small challenges need to be brought to light, which elicits various reactions and leads to new insights. This has inspired me to adopt a similar attitude moving forward.
Adachi:
There are also cases of interns going missing. Unfortunately, within the company, such reports often end with just a bland acknowledgment. For the interns, various problems arise, such as visa issues, and we want to prevent this from happening. What should we be mindful of when a disappearance occurs?
Ibusuki:
I would like to investigate the causes of disappearances. Even if wages are paid legally, if workers feel they can’t repay their debts or don’t see the purpose in their hard work in Japan, some may indeed decide to disappear to earn money elsewhere. There might be issues we haven’t recognized yet, so it’s crucial not to jump to conclusions about the missing interns but to conduct investigations that can help prevent future disappearances.
Adachi:
It seems that burdens like debt can lead to disappearances, so I feel it's essential to first grasp the actual situation.
Ibusuki:
There are also negative temptations on social media, such as offers of 1.5 times the salary. Thus, having people in the workplace or community to consult with is important. For instance, an intern who had a close relationship with local residents was persuaded not to pursue a job offer after being warned about the dangers.
*1: “Decent Work” refers to productive work for all people, characterized by freedom, equity, security, and human dignity, which is a core concept of SDG Goal 8.
Expectations for Maruha Nichiro
Tanaka:
I believe Maruha Nichiro is a leader in the industry and that it would be good to promote the identification of problems and the establishment of points of contact for seeking redress on the industry level. Once you make sure that there is no forced labor within the Company, raise awareness accordingly, and encourage employees to take action, your employees on the front lines will share information regarding these efforts with your business partners. When business partners are able to take the initiative in performing human rights due diligence, this practice will start to gain traction among their own business partners as well. While business partners are the targets of audits, they are also capable of gaining awareness of and actively promoting human rights due diligence on their own. It would be wonderful if Maruha Nichiro could have both its employees and business partners play equal roles and make the most of their respective capabilities.
Ibusuki:
I think one of the challenges facing the fisheries industry is that it is prone to problems and is subject to intense media scrutiny. That is why I believe that Maruha Nichiro’s sincere efforts as a leader in the industry will transform the industry and have an impact on other industries.
Adachi:
Guidelines tend to focus on what a company can do, but I think it is imperative that we focus on workers who are performing the work. Thank you very much.
Kokaji:
A company like ours exists amid relationships with people, with human rights serving as its very basis. I am once again reminded of the importance of putting ourselves in other people’s shoes and exercising our imagination in the course of our activities. Thank you very much for your valuable feedback today.
