Experience counts for something in JR embezzling incident

April 3rd, 2012 by Philip Brasor & Masako Tsubuku

JR ticket office

On March 16, JR West pressed charges against a 50-year-old employee who allegedly embezzled ¥86 million. The unnamed worker, who was hired by the railway company in 1980, when it was still part of Japan National Railways (JNR), worked in the ticket office of Akashi Station on the JR Sanyo Line. He has been accused of printing out fake teiki (commuter passes) for which he gave out equally fake refunds that ended up in his pocket. All in all, he carried out this fraud 659 times and supposedly spent the money on gambling and other “entertainment” activities. But what’s more interesting is that he didn’t do it alone. He apparently enlisted the assistance of seven other staff members who confessed that they felt pressured into going along with the scheme because of the accused’s seniority.

The suspect first started the racket when he was working at Asagiri Station on the same line. He would issue fake passes and then dispense refunds for the passes after the imaginary customers who purchased them reported they were defective. Since these passes are issued by vending machines, the salesperson keeps the supposedly defective pass and refunds the money, which the customer uses to buy a new one. Under such circumstances the salesperson has to write a report for the refund and then later someone has to verify the refund report with the returned pass, but somehow the employee figured out that no one ever actually did this. In fact, he probably could have continued the scam indefinitely if another employee in JR Nishi Nihon who worked on the Takarazuka Line hadn’t been caught doing the same thing, thus causing management to look a little closer at records to see if it wasn’t more widespread. Apparently it was. Even before they caught the Akashi embezzler, investigators discovered an employee at Osaka Station who had pilfered ¥32 million.

But none of the other embezzlers used underlings to help them bring in more cash. A JR executive told reporters that the seven accomplices were contract workers in their 20s, meaning their employment was not guaranteed. When questioned about why they agreed to participate in the scam, they said the accused, who was their supervisor, made it impossible to refuse. They knew it was wrong, but believed that if they didn’t obey his orders they’d lose their jobs. After five years they are given the opportunity to become regular employees, but if they don’t they aren’t rehired, since contract workers are limited to four rehirings. One of the seven stopped working for JR before the incident came to light.

After JNR went private in 1987 and the company was split into several regional railways, many older workers were laid off. Some sued and are still fighting to get their jobs back, but in any case JR West didn’t hire many new graduates in the subsequent decade, which means there is a wide age gap in the company’s ranks. At Akashi Station, for instance, eight of the 41 employees are in their late 40s and 50s, while the rest are in their 20s. Most of these younger employees are contract workers who have to renew their employment every year. The hourly wage is about ¥1,000 (following a three-month probation period during which they earn ¥890 an hour). JR didn’t reveal what the accused employee’s salary was, but according to Nenshu Lab, a wage research group, the average salary for a full-time JR West employee, regular or not, is ¥6.73 million. In 2005, however, the average salary was ¥7.24 million, which would seem to indicate that more contract workers have been hired as older workers retire.

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