: Classifieds : MyJU :
Stories: News
Browse News Stories: « Previous Story | Next Story »

Construction scandals are costing thousands of jobs

Date Posted: 2006-08-18

Okinawa Prefecture Construction Work Association is going to fire at least 1,000 workers this year, and other companies are expected to follow suit.

Association President Morimasa Goya says the Association’s 400 construction companies are struggling for survival in the wake of last year’s bid rigging scandals, and predicted some may go bankrupt. “Right now,” he says, “construction of public works projects has decreased quite a lot, and last year’s bid rigging scandal is leading companies to fire workers.”

Goya predicts “this 1,000 firing of workers is only the tip of the iceberg,” and says there “are a lot more workers to be fired in business like sub-contracting offices.” He notes that only 469 of the Prefecture’s 5,383 companies are members of his association, and says his 8.7% of the companies is only a fraction of the industry’s problems.

He says the bid rigging scandal has caused half of the construction workers association members to stop being invited to bid on projects. The economy and new budget rules are also hurting, Goya notes. “Because the States’ Trinity Reform System, we could never think that public construction works will be increasing, but rather, decreasing more and more. Expenses have been cut, Goya adds, but says cutting people is necessary too. “We suspect many companies will close. More than 50-100 companies will go into bankruptcy within a few years, I’m afraid.”

Okinawa’s 77,000 construction workers represent 12.8% of the industrial work force, a figure well above the nationwide 8.8% in the construction trades. Goya points out that the media is saying Okinawa’s economy is getting better, but that the lack of public works projects and the fallout from the bid rigging scandal is hurting.

Since bid rigging is strictly forbidden, Goya says, local companies will not get local jobs at all. He says the Association is trying to get new jobs and to keep its workers, but the current contracts don’t warrant so many workers. In the meantime, Goya says his Construction Workers Association is going to take the Prefecture to court, seeking redress of decisions made about the bid rigging. In the meantime, construction has slowed or stopped, and the Association is worried about who’s going to pay for both equipment and manpower salaries.

Browse News Stories: « Previous Story | Next Story »

weather currency health and beauty restaurants Yellowpages JU Blog

OkistyleJU FacebookOkistyle

Go to advertising PDF?||?|o?L?qAE?|?}?OA?N?ga`OkiStyle?A??q?qM?oeu^?I`??N?gX?<eth>?<ETH>?ni^?IWanted!!Golden Kings ScheduleOkiNightSeeker