OSAKA -- Nearly 100 employees of the Credit Union Osaka Koyo -- due to transfer its operations to Osaka Shomin Credit Union in August -- filed suit Wednesday seeking to secure employment after the transfer and 100,000 yen compensation payments for psychological pain.
The 97 plaintiffs claim that dismissal would be unlawful because the transfer of operations is a de facto merger, meaning employment contracts, deposits and loans of Osaka Koyo have to be taken over by Osaka Shomin.
According to the transfer contract concluded in August, Osaka Shomin will take over the assets and loans of Osaka Koyo but not its employment contracts. Osaka Shomin will sign new contracts with former Osaka Koyo employees only if it deems it necessary.