"Protecting Only the Environment, Not Employment"... Japan Patagonia in Legal Battle with Employees

Dismissal Just Before Conversion to Permanent Contract
"Sufficient Notice Given at Hiring" Maintained

The Japanese branch of Patagonia, a global outdoor brand renowned for its ESG (Environmental, Social, and Governance) initiatives, has become embroiled in a lawsuit as employees protest over employment issues. It has been revealed that some Patagonia branches in Japan have been engaging in a deceptive practice of dismissing non-regular employees just before converting them to regular employees, drawing widespread criticism. Japanese media have also collectively pointed out Patagonia’s hypocrisy, noting that while the company protects the environment, it fails to protect its own employees.

On the 15th, the Mainichi Shimbun reported that the day before, Mizuho Fujikawa, in her 50s, filed a lawsuit at the Sapporo District Court demanding the withdrawal of Patagonia’s employment ban. Fujikawa, who worked at Patagonia’s Sapporo Kita store, received a notice of contract termination from Patagonia last April, just before her contract renewal, after 4 and a half years of continuous service. Although employees are supposed to be converted to indefinite contracts after five years, Fujikawa claims that her employment contract was unfairly terminated before reaching that period.

A Patagonia Union protest is taking place at the Patagonia store located in Sapporo, Hokkaido. (Photo by HTB News)

Mainichi pointed out that Patagonia’s unique employment system is the cause. Patagonia does not hold open recruitment for new hires; instead, it generally signs fixed-term employment contracts with prospective employees with a maximum term of five years. After completing five years, employees are classified as long-term employees and can be converted to indefinite contracts or maintain their existing contracts if they receive high scores in certain performance evaluations.

Fujikawa argues that this rule has actually been used as a mechanism to facilitate easy dismissals. She stated, "Around two years into my employment, a colleague who had completed 4 and a half years was dismissed. I can still hear their voice saying they wanted to continue working." Ultimately, she herself was dismissed after 4 and a half years on the grounds that she did not meet the criteria for long-term employment.

However, a Patagonia representative countered, "The contract limit of five years is explained at the time of hiring, and only those who accept this join the company," adding, "We do not deliberately terminate employment before five years. We review performance and evaluate resignations."

Afterward, Fujikawa consulted the Sapporo regional labor union about this employment practice and learned that Japan has a "five-year rule" to prevent abuse of fixed-term contracts, which allows fixed-term contract workers to be converted to indefinite contracts if they work beyond five years. However, Patagonia reportedly refused to abolish the contract renewal limit and convert employees to indefinite contracts.

He said, "Conversion to indefinite employment after five years of service is a worker’s right. It is not something the company can choose to recognize," and formed the Patagonia Union, Patagonia’s labor union, in July last year. The union membership grew from four members at its inception to eight as of December last year. Since December, Fujikawa has been continuing protests in front of the Patagonia store with union members, chanting slogans such as "Patagonia, protect not only the Earth but also employment."

Mizuho Fujikawa is speaking at a press conference held after the lawsuit at Sapporo District Court concluded on the 14th. (Photo by HTB News)

Shinya Nakamura, vice president of the Patagonia Union who works at another store in downtown Sapporo, is also participating in the strike. He told the Asahi Shimbun, "It is regrettable that a company that values the environment does not value its employees. We have been negotiating with the company for over a year but have not achieved good results. Nevertheless, we will not give up."

Japanese media highlighted Fujikawa’s story, criticizing Patagonia for remaining silent on such issues despite its strong commitment to environmental causes. Last year, founder Yvon Chouinard attracted attention by announcing he would transfer all his shares to a nonprofit organization dedicated to environmental causes. In Japan, Patagonia has supported movements opposing dam construction and closed all directly managed stores on the day of the House of Councillors election to facilitate employee voting.

Fujikawa said, "I respect Patagonia’s ideology demanding social justice," but emphasized, "That is why I feel strong anger toward the way employees are treated like disposable items." Chouinard refers to employees and customers as "my people" in his autobiography and other writings, raising the question of whether Japanese workers have a place in that vision.

Currently, Fujikawa’s employment contract ended on December 28 last year, but he continues to be active as a union member. At the Sapporo District Court the day before, he told reporters, "The issue of contract renewal limits is happening all over Japan. I hope this helps others in similar situations achieve better working conditions."

This content was produced with the assistance of AI translation services.