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Seminar Report: Addressing Unpaid Wages in Logistics

On March 24, 2025, Funai Soken Logistics, a leading consulting firm specializing in the logistics industry, held the "Second Seminar on Wage Systems to Prevent Unpaid Wage Litigation and Driver Turnover." Targeted at transport company executives and management teams, the seminar aimed to tackle pressing issues faced by the logistics industry.

Overview of the Challenges Faced

Participants of the seminar shared common concerns that resonate within the logistics sector:

• - How to avoid rising labor costs when commission-based pay is no longer acceptable.
• - The risk of unpaid overtime wages, particularly regarding commission payments.
• - Ensuring timely salary payments while managing inefficiencies leading to excessive overtime among staff members.
• - Addressing disparities in freight charges among customers that lead to dissatisfaction among drivers.
• - The challenges posed by a fixed overtime pay system that does not recognize individual effort.

Seminar Highlights

Key Responses to Unpaid Wage Litigation

The seminar featured several critical discussions:

• - Understanding Litigation Risks: Participants learned about appropriate responses to unpaid wage claims and how to avoid actions that may lead to chain litigation against companies.
• - Minimizing Damage through Revised Wage Structures: Strategies were outlined for shifting towards wage systems that minimize legal risks and potential financial damages.

Establishing Tailored Human Resource Systems

Another significant focus of the seminar was on developing appropriate human resource systems for logistics companies. Key points included:

• - Alternatives to Commission-Based Pay: Exploring alternative compensation methods that cater to the needs of drivers while avoiding the pitfalls of traditional commission pay.
• - Managing Driver Compliance: Solutions for improving adherence to dispatcher instructions, addressing workload balance, and managing overtime payments effectively.

Featured Speakers

The seminar was led by two senior consultants from Funai Soken Logistics:

• - Nobuaki Mimura: As the Senior Consultant and Team Leader of the Logistics HR Group, he has extensive experience in consulting for manufacturing and transportation firms, focusing on building and implementing effective HR systems.
• - Goshi Tamagawa: A Labour and Administrative Lawyer specializing in HR consulting for small to medium-sized transport companies, he has been instrumental in resolving labor disputes and streamlining wage structures.

Resources for Participants

Several free downloadable resources were made available for seminar attendees, aimed at providing guidance on effective wage system structures. The document emphasizes that many logistics companies rely on commission-based systems, which, while seemingly fair, often result in significant issues such as wage disparities, productivity drops, and legal risks associated with unpaid overtime claims.

These documents offer actionable insights for logistics companies seeking to innovate their wage structures effectively and sustainably.

About Funai Soken Logistics

Operating under the mission to foster logistics companies that employees can be proud of, Funai Soken Logistics provides hands-on consulting designed to enhance operational performance for small and medium-sized logistics businesses. They also manage the largest management platform for logistics providers in Japan, which brings together over 350 company owners from across the nation to share insights and strategies for growth.

For more information about their consultation services, visit their website.

Company Details
Name: Funai Soken Logistics Inc.
Head Office: 35th Floor, Yaesu Central Tower, 2-2-1 Yaesu, Chuo-ku, Tokyo, 104-0028, Japan
Established: May 10, 2000
CEO: Naoyuki Hashimoto
Contact: marketing@f-logi.com
Website: Funai Soken Logistics

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