Japanese National Railway Settlement Corporation

Worker controversy

When JNR was disbanded, many workers were left without jobs. The National Railway Workers' Union (Kokuro), and Japan Railway Motive Power Union, both prominent Japanese railway unions, represented a number of the JNR workers. JNR-provided lists contained workers' names for hire at the seven JR Group railway companies. Members of Kokuro and the Japan Railway Motive Power Union were left off this list after being instructed to leave the union or face being laid off. After the restructuring, some 7,600 former JNR workers, mostly Kokuro members, were left without jobs. JNRSC, after acquiring many of them, proceeded to fire more than 1,000. This controversy was cited as example of unfair labor practice by a number of union commissions, and litigation was brought up to fight against the anti-labor acts of JNR and its JR Group successors.

On December 22, 2003, the Supreme Court of Japan ruled in favor of the JR Group companies, saying that unfair labor practices by JNR were not the responsibility of the JR Group companies, and as independently operating agencies, they were not legally obligated to hire back the dismissed workers. Litigation on the matter after 1998 rests on the Japan Railway Construction, Transport and Technology Agency, which now holds the majority sum of the JNRSC's liability and assets.

On June 28, 2010, 23 years after the original privatization, the Supreme Court settled the dispute between the workers and the Japan Railway Construction, Transport and Technology Agency, the successor body to the JNR Settlement Corporation. The agency said it would pay 20 billion yen, approximately 22 million yen per worker, to 904 plaintiffs. However, as the workers were not reinstated, it was not a full settlement.