OSAKA, Jun 23 (News On Japan) - A group of former employees has filed a lawsuit against Neo Corporation, an Osaka-based electrical equipment sales company, accusing it of routine power harassment, sexual coercion, and an oppressive system of financial penalties despite advertising average annual salaries exceeding 14 million yen.
The plaintiffs describe a workplace where violence, humiliation, and extreme pressure were part of daily life behind the company’s promise of high earnings.
"It was violent on a daily basis. It felt like working in a yakuza office," said a former employee identified as A. Another former employee, B, recalled, "When my testicles were grabbed, the pain was so severe I couldn’t even make a sound. This kind of abuse was routine."
Both A and B once worked for Neo Corporation, an Osaka-based firm specializing in selling and installing electrical equipment. According to its website, the company boasts that its sales employees earn an average of 14.27 million yen annually. However, five former employees, including A and B, have filed a lawsuit demanding compensation for damages stemming from power harassment and other abusive practices.
A, a man in his 40s, spoke with Kansai TV, revealing he quit the company last year after working there for nine years. Revisiting the office after about a year, he said, "The memories of those painful days just come flooding back."
Neo Corporation operates across Japan, from Hokkaido to Kyushu. Lured by the promise of high earnings, A joined the company. But this March, along with four others, he filed suit seeking damages. According to court filings, a unique penalty system was in place. For example, if a sales employee committed a traffic violation while driving for work, their entire monthly commission would be forfeited. Since most of the salary was performance-based, even minor infractions could lead to significant financial loss. A admitted he had personally accumulated penalties totaling around 3 million yen due to repeated violations like failing to stop at intersections or speeding.
The penalty system extended beyond traffic violations. A separate practice called "rebate deductions" was applied when clients canceled contracts after signing. The commissions would be clawed back, and for some, multiple cancellations meant significant cuts to their income.
Verbal abuse was also rampant. In a recorded conversation between a superior and a subordinate, a manager is heard yelling: "You were supposed to work 10 hours but only did 4 and a half. That’s zero performance. What do you have to say?" The employee repeatedly apologized as the superior berated him for failing to meet sales targets.
B, who joined A in the lawsuit, described being subjected to extreme forms of harassment. "When I didn’t meet my targets, a superior ordered me to send a full-body nude photo. That time I managed to avoid it, but on another occasion when I again failed to meet sales goals, he demanded a photo of my genitals. I couldn’t refuse and sent it." B said the explicit photo was then circulated within the company.
In addition to sexual coercion, B described frequent physical assaults, particularly a recurring act where a superior would grab his testicles. "He claimed he wasn’t using much force, but the pain was unbearable. I couldn’t even scream. This happened regularly," he said. B was later diagnosed with adjustment disorder and left the company. He is also considering filing criminal charges against his former superior.
Kansai TV managed to interview a former manager from Neo Corporation. "The yelling was part of daily life there. That kind of language was used with everyone," the ex-manager said, adding that while he personally did not engage in such harassment, many managers routinely took an aggressive stance toward subordinates. "If you couldn’t intimidate your subordinates, you weren’t considered management material. Some people completely changed once they became branch managers. This was the norm across all branches," he explained.
The five former employees are collectively seeking 19 million yen in damages. Neo Corporation responded on its website, stating, "We believe these claims are based on one-sided interpretations and perceptions." When Kansai TV requested further clarification about the penalty system and alleged harassment, the company replied, "We do not deduct salaries directly. Compensation is determined through performance evaluations. Harassment is not part of our corporate culture."
However, current employees have also testified that power harassment remains prevalent. "The company publicly denies it, but for those working there, the harassment is still very much a reality. There has been no improvement in the culture of intimidation and verbal abuse toward employees who fail to meet targets," said one source.
The lawsuit filed by the five former employees against Neo Corporation is ongoing. Commentators noted that beyond the legal battle, the company’s very business ethics and internal trust are being called into question. "Without mutual trust, you can’t do business," one observer commented, expressing serious concern over the firm’s internal environment.
As the trial progresses, the full extent of the company’s practices is expected to be brought to light.
Source: KTV NEWS
