Internal probe found thousands of staff had underreported hours
February 4, 2019
Subaru said it did not pay overtime wages over a two-year period to some 3,400 employees who under-reported their hours.
As Pascale Davies reports, the revelation surfaced in an internal probe following the 2016 death of an overworked employee.
Japanese car-maker Subaru has found 3,400 employees were not paid for overtime over a period of two years.
The company launched its own probe and found thousands of its staff had underreported their hours so as not to exceed the limit for the budget for overtime work.
The investigation came after a 46-year-old white collar worker jumped to his death from the roof of a Subaru factory in 2016.
Authorities ruled the man died from overworking, which is called 'karoshi' in Japan.
Back then, Subaru was enjoying a sales and profit peak — especially in the U.S.
But now the company is under pressure with hundreds of thousands of cars being recalled following flawed vehicle inspections.
Subaru had said it has taken steps since the probe to make sure workers are unable to falsely report their actual work hours.
And that the $7 million (all figures U.S.) in outstanding wages for overtime from 2015-2017 was paid retroactively to staff last March.
It still, it says, owes the deceased worker around $37,00 in overtime and is in settlement talks with his family.