President of Advertising Giant Steps Down

Tokyo Labor Branch of Ministry of Health, Labor and Welfare sent papers to the public prosecutors office, pertaining to the case of violation against Labor Standards Act by a major advertizing corporation, Dentsu. Dentsu is suspected as having forced unusually extended labor to a young woman and caused her suicide. President of Dentsu announced that he would step down this month.

Matsuri Takahashi entered Dentsu in April 2015 and worked for internet advertising projects. After she finished internship in September, Dentsu forced her extended labor between October and December. Her monthly overtime work amounted to 130 hours. She was suffered from depression and killed herself, leaving a note of appealing her hardship.

The labor office recognized that Dentsu forced Takahashi illegal amount of overwork and underreported her working record. The office also found that the company forced over thirty employees illegal overwork. It was unusually fast for the office to send papers within one and a half month, since they started investigation to Dentsu in November.

The President of Dentsu, Tadashi Ishii, apologized on his failure in protecting his employees from extreme overworking. “Death of an employee with overwork was something that must not happen. I cannot stand regretting it and deeply feel my responsibility on the case as the top manager,” told Ishii in a press conference and apologized to the family of Takahashi.

Having realized the impact of the case, it is highly unusual for the labor office to send papers so quickly. Asahi Shimbun reported that MHLW was expecting to send the papers in February, because it would take certain length of time for analyzing data confiscated from Dentsu. Prosecutors’ Office was negative on quick investigation, caring about insufficient corroboration.

Some doubts influence from Shinzo Abe administration, which is promoting reform on the way of working. Asahi quoted a comment of anonymous source of MHLW that indicated intervention of Abe administration. One investigator called the case a political issue.

Although it would still take a long time for the prosecutors office to conclude how to deal the case, Ishii already announced his resignation, recognizing his responsibility. It is likely that Abe administration is overseeing harder than ever. But, it is still unclear whether that regulation will work for his economic agenda of growth strategy.