Seven former food-service workers at the Foreign Correspondents' Club of Japan sued the press club Tuesday for unfair dismissal during its transition to a public interest corporation.
The FCCJ told its employees in February last year that it will adopt the tax break-receiving status, according to the lawsuit filed with the Tokyo District Court.
The press club then dismissed 36 employees and contracted out its food services on the grounds of having to meet a requirement that at least half of its expenses be used for public benefit.
The plaintiffs argue that the FCCJ could achieve the status without cutting its food services and are demanding reinstatement and reimbursement of unpaid wages.