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Japan Inc's safety failures point to deeper malaise

Companies are failing to produce the skilled workers needed to ensure standards are met in areas like safety

Kobe Steel
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Japan’s third-largest steelmaker, Kobe Steel, said its workers had tampered with product specifications for years, leaving companies around the world scrambling to verify the safety of cars, planes, trains and electrical goods | Photo: Reuters

Sam Nussey | Reuters Tokyo
A series of safety scandals at Japanese companies have put the country’s lionised factory floor under scrutiny as manufacturers struggle with increased pressure on costs, stricter enforcement of standards and growing competition.

With margins squeezed by a stagnant domestic market and rivalry from China and South Korea, many factories have cut costs, reducing their reliance on workers in lifetime employment in favour of labourers on temporary contracts.

As they have done so, safety scandals have erupted across the country’s much-vaunted manufacturing sector, with Subaru on Friday joining Nissan Motor in admitting it failed to follow proper vehicle inspection procedures.

Earlier this month, Japan’s