Another political funds scandal linked to a Democratic Party of Japan figure has come to light. On March 1, four trade union members were arrested on suspicion of violating the Political Funds Control Law with regard to donations allegedly received by the election campaign office of DPJ Lower House member Chiyomi Kobayashi. It is an unwanted blow for a party already suffering from funds scandals involving Prime Minister Yukio Hatoyama and DPJ Secretary General Ichiro Ozawa.

Arrested were three senior members of the Hokkaido Teachers Union, part of the Japan Teachers Union (Nikkyoso), and a member of the All Japan Prefectural and Municipal Workers Union (Jichiro) who served as chief accountant for Ms. Kobayashi's campaign office. It is suspected that between December 2008 and July 2009, four donations of ¥4 million were made by the three teachers union members to the chief accountant of Ms. Kobayashi's campaign. The Political Funds Control Law allows a labor union to make donations to a political party, a party branch or a politician's funds management body, but not to a campaign office.

Labor unions are an important part of the DPJ's political machine, and Nikkyoso backs a number of DPJ lawmakers. The arrests could hurt the DPJ's performance in the coming Upper House election by slowing the unions' campaign activities.