Tower Semiconductor, TowerJazz Japan and trade unions
Lead NCPJapan
Supporting NCP(s)Israel
DescriptionSpecific instance notified by a trade union regarding the activities of Tower Semiconductor, a multinational enterprise, and its subsidiary TowerJazz Japan.
Theme(s)Employment and industrial relations
Date18 Aug 2014
Host country(ies)Japan
SourceTrade Union
Industry sectorManufacturing

Read the final statement issued by the Japanese NCP - 30 September 2016 | Japanese

On 18 August 2014 the Japanese NCP received a submission from several trade unions (the TowerJazz Branch of Rengo Hokuban Local Union, the Hokuban Local Council of Rengo-Hyogo, Rengo-Hyogo and Rengo (the Japanese Trade Union Confederation) alleging that the multinational company Tower Semiconductor Ltd. headquartered in Israel and its Japanese subsidiary, TowerJazz Japan Ltd., had not observed the employee and industrial relations provisions of the Guidelines in Japan.

The trade unions alleged that the company had not observed the company’s Rules of Employment regarding the distribution of severance allowances following the closure of TowerJazz Japan’s Nishiwaki factory and the dismissal of factory employees. The trade unions also stated in the submission that, in their view, the company representative participating in collective negotiation with the trade unions had no authority to do so.

On 19 January 2015, the Japanese NCP issued an initial assessment accepting the case for further examination.
The NCP asked TowerJazz Japan to engage in dialogue four times between January and October 2015. TowerJazz Japan did not engage with the NCP citing parallel ongoing consultations and mediation. In January 2016, the NCP offered consultation with Tower Semiconductor but the company took the same position as TowerJazz Japan and did not act on the offer.

On 30 September 2016, following the expression of unwillingness of the companies to engage in consultation, the Japanese NCP published its final statement and concluded the specific instance noting that it could not propose any consultation without the agreement of the parties involved.