Love FM Industrial Action

By Chris Flynn

The Tap on the Shoulder

In late August 2002 production staff at Love FM were handed an undated A4 document in Japanese which stated that due to financial difficulties that their “subcontracting contract” (gyomu itaku keiyaku) will expire at the end of September, and that all production will be outsourced. Recession and expected drops in revenue were also mentioned. This came as a shock to the staff who were mostly foreign, some who had been working for the station since the start. After years of giving their all to the fledgling international radio station staff were to be thrown out without even a face to face explanation. The anger at the company’s cold-hearted handling coupled with the insecurity of suddenly losing their livelihood prompted several employees to take industrial action, which eventually resulted in an apology and compensation from the station management.

Love FM - Foreign Language Radio Station (or not)

After the Hanshin earthquake in 1995 the Japanese government moved to establish foreign language radio stations to provide information to non-Japanese in times of emergency. The first station was established in Osaka in Osaka (FM Cocolo) followed by Tokyo (Inter FM) and in April 1997 Kyushu International FM (known as Love FM) commenced broadcasting in six languages. The DJs were 100% gaijin (foreign) at the time. The station was a third-sector company (shares held by public and private companies) With Fukuoka City, Fukuoka Prefecture, Kitakyuhsu City and fifty leading companies being shareholders. The president was Goto Tatsuta, then president of the Nishi Nippon Bank and president of the Fukuoka Chamber of Commerce, however it was soon to become apparent that he was just a figurehead. The Managing Director was Tomizawa Yoshihiro. A former Fukuoka City Hall bureaucrat who after taking early retirement headed the Fukuoka International Association for seven years before taking up the position at Love FM. According to Tomizawa Love FM was his brainchild and he was the one who used his influence to persuade the government and business to shell out \500 million to start the station. Auditions were held in late 1996 with local foreigners filling the positions.

Dodgy Contracts and Backtracking on Pay Promises

Before broadcasting commenced DJs were required to take part in at least five hours per week training. This was due to the fact that the studio was equipped with the most advanced digital audio equipment and to get a feel of what the station was like. In fact despite what the company name might imply, the international component of the station was the DJs only, all other production staff were Japanese including management. During training all staff were paid \800 per hour. There was some dissatisfaction about the low pay, but DJs thought that it would be worth it once they commenced broadcasting. DJs were told that they would receive \3000 per hour of on air time, plus one hour before and one hour after the show for preparation; therefore if you had a 3hr show you would be paid 3+2 hrs x \3000 = \15000. However this proved to be wrong after management went back on their word just before the start of broadcasts on April 1 when they informed us that no preparation time would be paid.

A few weeks after broadcasting commenced foreign staff only were presented with contracts. When I read the six month contract I was alarmed by the clause which stated that “workers are not covered by the Labour Standards Law”. On pointing this out to my superior I was told that “it was there to get around the law which prohibited women working at night” to which I replied “but I’m not a woman”. To that my superior said “It’s either sign it or don’t work here”.

After six months had passed we were due for new contracts, however on requesting them we were told “There will be no contracts, just continue under the same conditions”. In hindsight, to just sit back and work without a clear written contract is just asking for trouble, but the faith staff had in the international station and the misplaced belief that they would not do the dirty on us proved to be a major issue five years later.

The Smell of Trouble

The station started off with great fanfare, the City and Prefecture getting good mileage from the prestige of having an International radio station. Broadcasting commenced in time to cover the Asian Development Bank Biennial General Meeting which was attended by Finance Ministers from over fifty countries. Ratings gradually increased, and at one ratings Love FM drew level with KBC Radio gaining 0.5% of the listening area. But sponsorship was scarce, with only shareholders placing ads or buying time. An article in Zaikai Kyushu on the difficulties facing local radio in Fukuoka quoted Love FM management as saying “We are so far in the red that we can’t talk to you”. However the financial difficulties were kept from production staff, who kept on working in the belief that their jobs were safe until late 2001. Staff were given a letter asking for suggestions on how to make the station more profitable, as the money was running out. (Shortly after this office extensions doubled office floor space ). It took the company five years to convey to production staff that they were in financial difficulty.

Sacked, then Back

In February 2002 most DJs were told that they would not be needed after March as the station was to take a new direction. However disgruntled DJs were soon to be given a reprieve as three weeks before their last show, the station did a 180 degree turnaround and asked them to stay on. The unstable nature of the station and incompetence of the management was a prelude to what was to come five months later.

Save the World View Today

Word got out that Love FM’s flagship international program World View Today was to be terminated. Host Lawrence Lee had worked at Love FM for nearly five years and was the face and voice of Love FM. On hearing this loyal listeners started a petition to save the program with two letters being published in The Japan Times and countless faxes and emails being sent to the station. Lawrence was replaced by veteran Fukuoka radio personality Okabe Hachiro in what seemed to be an attempt to attract Japanese listeners. (This was an abject failure as it turned out that Okabe’s ratings were actually lower than Lee’s.) However the protests did have some affect as Lee was kept on as news compiler and reader.

Lee’s Contract

Lawrence Lee had devoted five years to Love FM, waking up a 3.30am to do the morning shift, being there to pass on information after the 9/11 attack and generally being the most recognizable personality at Love FM. However he could detect that there was instability at the company and requested a fresh contract. And in order to avoid misunderstanding was accompanied by an interpreter at a meeting with the management requesting a contract, where he was told “OK, I will get you a new contract”. After a few weeks went by and no contract was forthcoming he requested another meeting where he was told again: “Yes, I promise I will get you the contract”. Unfortunately Lawrence Lee never received the contract he was promised.

Which brings the situation to August 2002 when staff were given the letter: ”end of sub-contract”.

Disappointment Turns to Anger

After five years of dedicated service Lawrence Lee was given a two minute explanation that he was getting the sack. The company did not even bother to date the letter, let alone provide an English version. Director Hashimoto was handed the letter and coldly told: “Here read this and you’ll understand the score”. The letter indicated that all production was to be outsourced and three companies based in Tokyo, Osaka and Kumamoto would be employing staff; for all intents and purposes practically all of the staff, mostly foreigners had got the sack.

This did not go down well with Lawrence Lee, who as a father of five children had just lost his main source of income. He searched Rainbow Plaza, the international information office and found the contact details of the Fukuoka General Workers Union, and subsequently made inquiries into his situation.

The Fukuoka General Workers Union (FGWU)

The FGWU, a branch of the National General Workers Union is a small group working to assist foreigners experiencing industrial trouble. The Secretary Kawaguchi Eiji advised Lee that he and other disadvantaged employees should join the union, and demand that the company meet for collective bargaining.

Itaku Gyomu (subcontract) vs Koyou Keiyaku (Contract of Employment)

Nine employees joined the union (seven foreigners and two Japanese) and demanded that the management meet the union for collective bargaining. However the management replied saying that they were not obliged to meet for collective bargaining as staff were not employees (koyo keiyaku), but were subcontracted (itaku gyomu). This was a first for employees, who had never heard the word itaku gyomu in any way shape or form in any language. The company, by claiming that staff were sub contracted were attempting to avoid any responsibilities under the Labour Standards Law. This came as a shock and a disappointment to the staff, who had worked hard for low pay for so long with the knowledge that they were contributing to the internationalization of Kyushu, only to find out that the management were trying to get rid of them with a legal technicality, and a pretty flimsy one at that. While being interviewed by the Nishinippon Newspaper, the management claimed that: “They had verbally informed all staff that they were subcontracted”. But the truth was not one staff member had ever been told that they were subcontracted.

However Love FM stuck to their claim that no staff member was ever an “employee”, therefore they did not have to pay overtime, holidays, unemployment insurance of company health insurance. This was especially difficult for Lee and other DJs who lost their main source of income and had no safety net in the form of unemployment benefits. The management agreed to meet with the union, not for collective bargaining, but in their words “an explanation why the subcontracting arrangement will be terminated”. The meeting was held and two management staff with no autonomy listened to our demands.

There were calls by Union members to conduct a strike and street protest to bring the situation at the station to the attention of the media, however this was cancelled at the last minute as some members (myself included) thought that the station would come to its senses and do the right thing by its employees. This turned out to be wishful thinging.

Later Love FM was to reply rejecting all demands on the basis that staff were “subcontracted” and were not obliged to meet for collective bargaining. The Union then demanded to see written evidence that the staff were “sub contracted”, however the president replied that there was a sub-contracting contract, but there was “no written evidence” to support their claim.

The “Bread is Rice” Theory

A further meeting was held between the Union and Love FM management, in which Director Tomizawa was present. The management, still not recognizing the right to collective bargain, labeled the meeting as an “Explanation of the Status of the Station”. A few days earlier on of the union members came across some documents being thrown out of the management. Among the documents were the original contracts exchanged between DJs including Lawrence Lee. The contract was titled “Contract of Employment” . This completely flied in the face of the Love FM’s claim that staff were “not employed”, and proved to the union that the station was involved in an orchestrated deception in order to rid itself of production staff without due process and rights protected by the Labour Standards Law.

During the meeting the management went into a lengthy explanation of why the station needs to get rid of foreign language programming (i.e. foreigners), and how much debt the station is carrying (documents presented showed that the station had accumulated debts of \700 million, exceeding assets of \500 million). Tomizawa explained at length how he had worked so hard for Love FM and how little salary he was receiving. This was of no importance to the Union. What was important to Union members was termination pay, unpaid holiday pay, unpaid transport allowance and unemployment insurance.

During the meeting the management reiterated that we were not employees. Then I presented the old contract titled “Contract of Employment” and asked them “Well, what is this?” Their reply was quite unexpected:

“The contract says Contract of Employment, but in actual fact it is a Sub-contracting Contract”

The unbelievable explanation produced not disappointment, but anger from the Union: “But that is like trying to tell us that bread is rice, come on, you can’t be serious”. But Love FM was quite serious and later employed lawyers to support their claim.

Unemployment Insurance

Despite Love FM’s utter refusal to recognize production staff as employees, union members went to Hello Work (employment office) to apply for unemployment insurance. It actually came to light that there were inconsistencies in the station’s claims that we were not employees, as some were enrolled in the unemployment insurance scheme, and others weren’t. (This backs up the claim that that the station was making up the plot as they went along). Two union members with identical employment records were not the same when it came to insurance, as one was enrolled and the other not. Love FM then went on to explain that the staff who were enrolled had different duties, therefore were entitled to those benefits. (no one believed that this was the case) . So there were some who did get unemployment benefits, and some who didn’t. Foreign DJs applied to Hello Work for the benefits, and the office was sympathetic to their requests. However Love FM wrote a letter to Hello Work which is believed to have threatened them with legal action if they cooperated with Union members in their attempts to receive unemployment benefits. Not the kind of thing you would expect from an international radio station.

Prefectural Labour Commission

The Union lodged an appeal against the treatment of its employees with the Prefectural Labour Commission, seeking a ruling on the claim that Love FM staff were sub-contracted, not employees. Two hearings were held with the Commission directing the parties to hold talks during their deliberations. This was reported in the media.

Amakudari Beats Sub-Contracting

The management of Love FM were attempting to get rid of its (mainly) foreign workers through a legal maze to cover up for its negligence. It was the management who lost \700 million in five years, but they were passing the blame on to the foreign DJs. “We can’t sell English radio, the sponsors want Japanese” was the recurring cry from the management (apparently forgetting that Love FM was a Foreign Language Radio Station). But where did the management originate from?

Love FM being a third sector company was put together with a bunch of amateurs at the helm.Almost all management had no previous radio experience and were on secondment from their employers (shareholders).

Managing director Tomizawa, who was the person responsible for the station was a former high ranking public servant at Fukuoka City Hall. He took early retirement (retirement pay estimated to be around \35 million) to become Director of the Fukuoka International Exchange Association where he worked for seven years (picking up another estimated\8 million in retirement) before taking the job at Love FM. During negotiations Tomizawa exclaimed how hard he had worked for the station, how little he was being paid and how a man of his age should be retired and climbing mountains. This had little impact on those who were about to lose their livelihood, fired by a man who had already received close to \50 million in retirement payments. Though Union members agreed that Tomizawa was basically a nice man and had good intentions, he was forced to put on the corporate mask and defend the company at the expense of the livelihoods of former foreign employees. It was a shame to see a man who had worked so long to help Fukuoka become more internationalized stoop to saving his own amakudari nest. But when cross examined on the question of whether Love FM intended to employ foreigners as subcontracted DJs back in 1997 and if he had explained it, he avoided the question saying that “I am not a legal expert and I would have to talk to the lawyers”. On hearing that reply I asked him again: “Come on, you don’t have to ask a lawyer what your intentions were toward us in1997, just tell the truth”, but he again avoided the question. So much for international friendship!

The Last Round

Love FM was painting itself into the proverbial corner. The Union had threatened legal action over its claim that staff were not employees. There was also pressure from shareholders to wipe off some of the \700 million debt. A long protracted legal battle against the FGWU was a nasty alternative as it would portray the flagship of Fukuoka’s internationalization as a pariah feeding off the woes of foreigners. Industrial action in the form of street protests by foreigners was also on the cards, which would have stained Love FM. Justin Williams, a long time DJ was forced to return to England as he could not receive unemployment insurance and did not have sufficient funds to survive in Fukuoka.

Documents obtained through the freedom of information section of City Hall revealed that despite income increasing over the past three years the station was still running at a loss (so much for the ability of the management). The station had borrowed \440 million from the three local banks (who are also shareholders).

On the other hand the Union members were in pretty dire straits. By the end of November they were had already experienced two months without any income (not even unemployment benefits), which was especially hard for members with families to support. The station had re-employed only a handful of foreign DJs at fewer hours and less pay, with most of the programming being taken up by Japanese DJs who came from outside Fukuoka. The station had turned into a non-international, run of the mill Japanese radio station, which made excuses to pretend it was international. Union members were not in a position to take on the long arduous process of legal action for such small demands as unemployment insurance, holiday pay and severance pay.

During negotiations, the management tried to stall the settlement claiming that they needed to hold a extraordinary stockholders meeting to give the go ahead for any payout. (It was later revealed through Freedom of Information that NO stockholders meeting was held for this purpose, and as of April 2003 no official report of the industrial action has been made at any stockholders meeting.)

During final negotiations in November 2002 the station management met with the union to discuss the issues at hand. Love FM employed two lawyers to participate in discussions. Debate became heated when Director Tomizawa would not answer, letting his lawyer reply to all questions. The lawyer reiterated the station’s viewpoint that “those contracts are not contracts of employment, but subcontracting contracts, I am an expert, take my word for it”. (I would like to ad that if he was so confident there would be no necessity for the station to negotiate). In the case of Lawrence Lee’s contract that was promised but never produced, General Affairs Manager Hatori admitted that, “He promised to provide a contract, but he didn’t say when he was going to produce it”. This was a child-like attempt by the company to get out of the hole it had dug for itself by lying. Actually it was known that there was a contract drawn up with corrections added to it in the station office, but for some reason which was not revealed, the station stalled giving it to Lee as promised. One can only speculate that the series of lies told by the station were planned to rid it of foreign DJs.

After being treated with contempt, being sacked without even the safety net of unemployment insurance and after being lied to by management the Union decided that there was no alternative but to seek a settlement. The Union made five demands: 1. cooperation with enrolling members in unemployment insurance, 2. holiday pay backdated two years, 3. backdated transportation costs for members who lived over 20km from the station 4. six months salary as termination pay, and 5. an apology from the management.

The Settlement

The station squeezed out every last drop they could. They agreed to the first three demands but pushed down the termination pay to just two months, which the union begrudgingly accepted. Managing Director Tomizawa issued a statement expressing “regret” (ikan no i) and admitted that the dispute was caused by Love FM not providing clear written contracts. The union, while not 100% satisfied with the content figures, accepted the settlement as a victory, bring Love FM to account for its negligence.

Post Script

Of the nine Union members, two returned to the station and have a weekly three hour show. Two have left the country and four are working elsewhere. I continued on until the end of December 2002. Actually I was one of the few DJs who remained employed by the station, but three weeks after the settlement Love FM still had not furnished me with a contract. After all the pain and anger, after all the apologies, it was back to business as usual. No contracts, blurred working conditions, no communication between management and staff.

I tendered my resignation citing the fact that I had no confidence in the management for still not producing a contract. As soon as this was conveyed to the management they hurriedly called me saying that they had drafted contracts, but were waiting for them to be translated into English. I said I don’t need an English translation so give me the Japanese one to look at. As I suspected it was a contract with no protection for the workers, and I asked that a clause be added stating “This contract is covered by the Labour Standards Law”. Management told me that it would be “impossible” for them to add that clause. I replied that if you won’t give me the protection of the LSL I won’t work, therefore my six year association with Love FM ended.

It is a sad reflection on a company when they refuse to give you protection provided by basic law. It is also even more dissappointing when the company, owned by the government and the 50 most prestegious companies in the region, and a (so-called) "International" company refuses a foreign resident these rights.

International - Just Another Way for Bureaucrats to Profit

Looking back on the Love FM fiasco I see it was doomed from the beginning. Amateurs trying to run a radio station, Japanese management with no experience overseeing foreign employees, public servants trying to run a private enterprise, and foreigners being treat like disposable labourers.

On the other hand the foreign DJs should have realized that the station was going to get rid of them anyway, and not trusted the station just because it claims to be “international”. The status of being a “radio personality” pandered to the ego and clouded judgement. If we demanded proper contracts in the beginning and been prepared to rock the boat earlier, instead of protecting our high profile jobs, things would have not got nasty.

Now Love FM is run by Japanese, with very few local foreigners working, and hardly any foreign language content. What started out as an exercise in “internationalization” has turned into an exercise of “internationalization without foreigners”

The management is desperately trying to save its skin, trying to whittle down the debt they have accumulated. This has become the prime objective of the station, international matters and local foreign issues have disappeared. The existence of the station has become a non-issue among foreigners who do not tune in any more. Shareholders, especially banks which have exposed themselves to huge debts are now pouring in more advertising money than ever in an apparent attempt to save their investment.

As of April 2002 Love FM was insolvent with debt exceeding assets by over \200 million. More debt can be expected, but the management remains unchanged. If was a private company it would have gone into receivership long ago, but the business connections with the private and public sector have kept the critically injured patient on life support.

To conceal their negligence they have passed all the blame onto the (mainly) foreign production staff. Where is the “International” in Kyushu International FM, and where is the “Love”.

Related Documents

2002 AGM Documents 1, 2, 3, 4
Letter to the editor Nishinippon Shinbun
Asahi Shinbun Article
Fukuoka Now Article
Fukuoka Now reply to article (management and listeners response) page1 page2