Jiji PressTOKYO (Jiji Press) — Japanese transportation service group Yamato Holdings Co. said Tuesday it will pay some 47,000 group employees a total of ¥19 billion in unpaid overtime from the past two years.
The parent of leading parcel delivery company Yamato Transport Co. admitted that many of its drivers had to work long hours, including overtime without pay, chronically due to a surge in parcel delivery demand in line with rapid growth in the e-commerce industry.
Citing the cost of the overtime payments, Yamato Holdings sharply revised down its consolidated earnings estimates for the latest business year ended in March.
Operating profit is now estimated at ¥34 billion, against the previous projection of ¥58 billion, and net profit at ¥19 billion, down from ¥34 billion.
Yamato Holdings Senior Managing Executive Officer Kenichi Shibasaki said the company became unable to properly manage work hours of its drivers in autumn last year as online shopping-related demand expanded faster than its projection.
Most of the unpaid overtime the company recognized this time happened during break time, while the rest was work before and after the regular work hours, according to Shibasaki.
A labor standards inspection office in Kanagawa Prefecture ordered a branch of Yamato Transport last year to take corrective steps against unpaid overtime.