The law to protect whistleblowers from unfair treatment by their employers came into force a decade ago. But the experience since then has shown that the law is useless in fulfilling its purpose. A study group of experts at the Consumer Agency discussing revisions to the law should come up with a proposal to substantially beef up the protection of whistleblowers and ensure proper handling of the information they provide.
The law was enacted in 2004 after accusations by insiders exposed a series of irregularities at major companies, including Mitsubishi Motors Corp.'s organized coverup of customer complaints about tens of thousands of defective vehicles and recalls of the products, mislabeling of imported beef by Snow Brand Foods Co. to obtain state subsidies and Tokyo Electric Power Co.'s falsification and hiding of data related to problems at its nuclear power plants. After it went into effect in 2006, companies and government offices set up sections to deal with information provided by their workers about wrongdoings. But such steps have not stopped various forms of retaliation by employers and government organizations against staff who blow the whistle on irregularities.
An Olympus Corp. employee in 2007 reported to the firm's compliance section that his boss was attempting to recruit a worker from the firm's trading partner, fearing that the boss's act would harm the company's trustworthiness. But he was suddenly moved to an inconsequential position. Although the Supreme Court in 2012 ruled in his favor in a damages lawsuit he filed against the employer and nullified his transfer, he was unable to return to his former position. He then filed another lawsuit and finally reached a compromise with Olympus and was awarded ¥11 million in settlement money last month.