S.O.S Fccj- Save our Club Save our Staff

We were greatly favored to be permitted to post these remarks which I understand were very well received by those attending

It is truly gratifying to be able at last on this site to give so positive and encouraging a review of events at FCCJ.  I hope and believe this is a trend that will continue. (Remarks and toast by President Suvendrini Kakuchi)...

Dear Members of the FCCJ,

At the Town Hall on Oct. 6 of this week I explained the circumstances surrounding the changing of the President of the FCCJ Board.  Of course, I didn't expect that all members would be able to attend, so I wanted to follow up with this note as a summary of the views exchanged at the Town Hall.This is part of my Board's effo...rts to open up how the Club is being governed so members are as fully informed as possible. I plan to share in special meetings with members followed by written summaries,the decisions made on crucial decisions facing the FCCJ this year -- the process covering the Club move and settlement towards the ongoing lawsuits. The Board is here to serve your interests as best it can.At the TH each Board member --those Board Members who voted for a new president and those who voted against --were given an opportunity to speak. 

Members who opposed said they felt the decision was sudden and there should have been prior warning.  Some participants expressed a similar opinion.  I also read an email from former president, James Simms.In reply, the majority who voted for change explained long frustration and loss of confidence during the past four months due to lack of leadership in pushing ahead with the main concern for us:  Ending the practice of the previous Board of blanketing meetings in non-disclosure policies.  Over these months,concerned and frustrated Board members that included myself appealed to the President in e-mails, phone calls and requests for meetings so action could betaken. 

We weren't successful.  At the same time, members of the Board such as Secretary Mary Corbett were being denied full access to previous Board minutes and F&B Director Robert Whiting was openly denied access to financial information to allow him to do his task of investigating the F&B outsourcing contract with IRS.Over more than three months, a consensus grew among the new Board members and myself that we hadn't in fact been allowed to take office.So on Sept. 24, a Board majority took the step to elect a new President.  I was nominated and accepted.  

Let me stress our decision to bring change in the BOD followed FCCJ by-laws and was done in the presence of the Kanji and the Parliamentarian.I also address a call at the TH for the resignation of myself and the Board and new elections.  The membership has aright under fixed rules and conditions to hold an emergency GMM and a vote for new elections.  But my colleagues and myself followed FCCJ by-laws and also do not think this is prudent as it will only set back again what has already been delayed by Board inaction since June; namely ending the lawsuits, renegotiating the IRS contract and moving forward on the Club move.  Finally, let me call your attention to a letter circulated before the TH titled "Questioning the FCCJ Coup".  The author or authors of this letter, which is riddled within accuracies, have such confidence in their convictions and allegations that they chose to remain anonymous.Let me say to the "anonymous" you do not reflect the traditions of Journalism in which correspondents put their reputations on the line and sometimes their lives by putting their name on what they write. I say to you the members, it's the  "anonymous" that are the real disgrace and threat to the FCCJ.  

This Board under new leadership has already rescinded the non-disclosure policies of the past Board so that all members can see the minutes of Board meetings and other documents pertaining to the operation of their Club.  The restrictions that remain on information disclosure are that which falls under Japan's Privacy Laws, commercial agreements that contain non-disclosure agreements, and information of a personal or sensitive nature discussed in executive session at Board meetings.This is my commitment during my term as President and note that I'm not afraid to sign my name to that.      

Yours sincerely,

Suvendrini Kakuchi  

President of the Foreign Correspondents' Club of Japan-------

There is a town hall at FCCJ tonight to talk about the change of government. The little cabal (Birmingham, Penn, Harris, Fukunaga, Sloan et al to name the more open members) that has been running things of late is very very angry about not being able to call the shots any more and not only have a few of the usual suspects been noisily practicing ...their usual brand of defamation and verbal mayhem but we have "anonymous" several page notices being quietly handed about to regular members. About half lies and half nonsense. That the change in President was "illegal," that it was against the rules (it wasn't) that it was unexpected (whether Harris' paranoia had any basis in fact he clearly claims to have known of a "plot" well in advance  (come on - its one or the other insn't it) that it was un-transparent, that the victims never had a chance (quite literally untrue) that it was a plot, and the personal slanders and libels have run rampant. This from people who until the so called "coup" misused the authority of the president to make sure that more than half the Board could not see the minutes from any prior meeting or any other Club documents.  These people have really outdone themselves this time. Their hangers on have engaged in a disgraceful orgy of racial slurs, sick jokes about mass killings, shameless misrepresentation on an impressive scale on social media. All nauseatingly punctuated with cynical talk about transparency from the very people who gave us what has to have been the least transparent Press Club in history.  

When these former Board Members and their lackeys talk about current board members (Kakuchi, Langan, Ajami, Corbett and Whiting) most of whose credentials are a little too good to trash in their usual contemptible fashion, they like to use the word "naive".  It is a word they are well familiar with.  They are now using it with regard to the aforementioned Board majority.  It is a concept they have made good use of.  We are inundated with disgraceful and misleading nonsense about the propriety of the FCCJ's present Board reaching out litigants who sued out of conscience and this from people (Birmingham et al.) whose withdrawal pains at having their noses yanked suddenly out of the public are likely to be an enduring disgrace. These old guard trouble-makers don't want the lawsuits to end.  Believe me I would know it if they did.  They are doing everything they can to delay or scuttle settlement efforts.  There is rarely ever a better excuse for martial law than the lie that one is under attack and that sacrifices must be made.  And Oh how they have used it. But all things good and bad come at some point to an end.  Even the FCCJ's membership will have had enough at some point and I think that point is approaching. Well we will see what comes of it all tonight.  Look for a lot of shouting and yakuza tactics by these people.  But do not give up hope.  The truth always outs eventually.

I will start with the initial election notices in June.  Just to make sure we have the proper perspective on things.

In regard to Mr. Sims message this month he makes the following points:

"Some of our Club volunteers have borne the brunt of online attacks – quite a few ad hominem – by people on the inside and outside for the volunteer work they have done for the Club. Disagreements are part and parcel of the FCCJ, all the more understandable for an organization m...ade up of journalists. But discussions should stick to the facts and be civil: In other words, the debate ought to befit that of a professional and fraternal organization.

Moreover, the numerous anonymous attacks by Japan’s so-called netto uyoku (internet right-wing) strike at our fundamental press functions. We must remember what our core mission is, as set out in our Articles of Association, and protect, as necessary, the Club and those being singled out for carrying that out.

So, the next time one is tempted to grumble about some aspect of the Club, step back, take a deep breath and think: “Can I offer a constructive solution with my criticism or offer a word of appreciation for those volunteering? Am I willing to give up some of my time to move the FCCJ forward?”

I respectfully ask Mr. Sims to bear in mind that quite a few of the "volunteers" he refers to have been a good deal less than civil with members, a fact that where the volunteers are on good terms with the Board, whose persistent dismissal of any complaint raised has effectively provided them "immunity" from complaint. Additionally, quite a few of these volunteers have done things in violation of our rules and refused to listen when this was civilly brought to their attention in the first instance. Some of them have done some very considerable damage to both the reputation and the well being of the FCCJ. No one suggests that all or even most volunteers are bad or ill intention-ed but when a few "volunteers" obtain a lock on certain positions and pursue unwise, harmful policies without regard to the legitimate objections of members while so ensconced, I think that perhaps beating up on the messengers who seek to enlighten the Membership of the situation misses the point.

And to be honest I think the complaints have almost entirely stuck to facts. Mostly what we hear (again from the "volunteers") or their defenders is vaguely worded statements to the entire membership -most of whom know nothing of these matters beyond what the Board tells them- that what has been alleged against them is untrue. In light of the police state mentality that now characterizes FCCJ internal information control (how ironic that we as an organization criticize the Japanese Government for their secrecy law. How curious they must think us) it is unlikely the membership can do anything but take these one sided self oriented panegyrics at face value; and yet somehow those who are complaining have come by the facts. To my knowledge, this acquisition of the facts has all been above board and for the most part the result of very considerable diligence and patience.

But there is of course that one Board member (of the past 4 or 5 boards or so) who leaked like Snowden for over two years and remains unpunished while the beneficiaries of his largesse are castigated as spies, thieves and traitors. If one reads these internet jeremiads , one finds facts, vast accumulations of facts, indeed veritable mountains of them. One thing that has so far aided the more culpable victims of these intrepid philipics is that there is so much information that readers are swamped, lose track and give up. And yet for those who do stick with it and read all the way through, no matter how one arranges these facts, they demonstrate very clearly that the account these "volunteers," indeed that recent Boards, have given of themselves simply cannot be the truth.

The FCCJ has not been managed at all as it should have been and there is yet both stubborn resistance to change by those who have been running it and an insistence that it is the complainants - people who have not exercised a crumb of FCCJ authority in many years - that are to blame for all that is wrong. Our litigants, to name one often strawman often beset, in spite of the fact that the very same board members and volunteers who would presumably be piously championing them in print were their suit against someone else - the Japanese government or some corporation for example - are accused of running up FCCJ legal fees  that a prudent and ethical settlement could have avoided years ago and a prudent and that a prudent and ethical Board would have avoided altogether.   The litigants of course did not twist anyone's arm to hire Anderson Mori, a Goliath to suppress a David if ever there was one*,  or to give them scorched earth "win at all" costs marching orders. Given that not all of the lawsuits are even seeking damages and those that are are seeking damages far less than the amounts spent in lawyers fees.  Who are they defending here?  It bloody well isn't the FCCJ.  I rather think some of your "volunteers" may have done all the arm twisting in this case. 

The Boards' responses to these "facts" over the years have been unilateral broadsides like the thinly veiled election spoiling tactic at the last GMM where the Board delivered to the membership a ridiculously one sided and inaccurate report of the litigation (several candidates were litigants) that was thrown together in such a hurry and so poorly done that they had the wrong sets of plaintiffs attached to the wrong lawsuits. Far from hecking them as I recall I quietly brought it to the attention of the then board and suggested they correct the document and redistribute it (which they tried but failed to do successfully during the meeting).

My constructive suggestion now is simply this. Our FCCJ membership is intelligent. And while the service of volunteers is deeply appreciated by all, even the so called complainants, we are not obliged to endure quietly the abuse by a few of these volunteers of the privileges that come with their obligations. I believe if I am not mistaken other more constructive and official suggestions have been made and been so far overlooked.  Nor are we bound to sit quietly as the scruffier part of the old guard wreck and ruin the FCCJ. Indeed quite the reverse. If these complainants are making unfair charges against innocent hardworking volunteers, let he membership put the volunteers up front with their accusers, make the relevant information available to all members, let the members weigh in on it and let us see after all who is telling the truth. We none of us have much tolerance for defamation (ie attacks that are in fact not "true") This is a press club. And we will collectively deal with defamation accordingly.  But anyone too sensitive for that sort of dialogue or unwilling to stand up to the sorts of abuse that make such a discussion necessary is probably in the wrong place. You can be sure we on the outside have had to bear more than our fair share of of unfounded inuendo and outright lies. And yes, the discussion can be civil. But there should be

1. No more concealment of relevant information from the membership under the guise of "business practices"
2. No more fact shy one sided mass mailings and No. 1 Shinbun bully pulpit articles that the complainants cannot answer

This weeks installment from Mr. Schreffler:

"This report is for Keiji Matsushima, a respected club associate, former president of Dentsu America and friend , who the previous Board suspended for seven months (until somebody else earned an even longer suspension) for, among other things, calling Mr. Fukunaga 'Dr. Jekyll & Mr. Hyde' on his person...al blog.

Keiji also reported club news. So problematic were his reports - telling staff's side of the lawsuits - that Mr. Fukunaga and the FCCJ's immediate past president , Lucy Birmingham, p aid our lawyers to send half a dozen letters ordering him to shut down his blog and remo ve all posts about the club.

Mrs. Birmingham supported the suspension - for blogging.

I will leave it to you to decide if Keiji’s characterization of Mr. Fukunaga is accurate with my posting of two November 2012 emails sent in Mr. Fukunaga's official capacity as FCCJ second vice president.

In one titled 'Dr. Jekyll' , h e laments having fired 50 FCCJ employees. “ This was a very painful job for me ," he wrote, " because we did hard negotiation with the club's union and terminate contract of about 50 employees ."

Mr. Fukunaga made t his admission to the Board, the kanji, the human resources committee and the lawyers on Nov. 18, 2012.

He added, same email: “ I did my duty b ut also tried, as I promised in my election, to protect jobs as (much as) possible. I did everything in accordance with advices by Mr. KAKUYAMA (the club's lead lawyer who has pocketed $125,000 in fees along with receiving an honorary membership) and with purpose to assist the club’s general manager. As a result, the FCCJ will be apply as the new status of Koeki Shadan Hojin.”

Three years later, our treasurer, Yuichi Otsuka, reported that the club was still operating in the red.

And several of the employees Mr. Fukunaga terminated are suing the club reportedly for unpaid wages. These are mainly contract employees, at least one of whom worked for the club for 10 years in various middle management positions and was refused a modest retirement allowance before being fired. The judge in the injunction suit - which preceded their main lawsuit - urged these guys to file a claim.

Note: There are two staff lawsuits, one filed in Tokyo District Court in December 2013 (the case mentioned above) and the second filed with the Tokyo Labor Commission in May 2012, shortly before the mass-firings. Combined, we have paid $200,000 in legal fees ( ¥25 million) in what appears to be a losing effort. Counting the first staff lawsuit and settlement (see Fukunaga Files-2), the total now exceeds $240,000. Sooner or later, quoting a former U.S. senator, it adds up to real money.

More problematic for the club, Mr. Fukunaga in the same memo accused then- president Georges Baumgartner of violating Japanese labor laws and power-harassing the club's former general manager. At the time second vice president in charge of personnel matters, Mr. Fukunaga accused Georges of 'unfair labor practices' and used the Japanese word 'futo rodo koi' or '不当労働行為' to emphasize the legal significance of his charge.

I mention Georges' name only because Georges is quite capable of defending himself. Moreover, he has been openly critical of the Board's secrecy policies over the past two years and the need to make our lawyers accountable for their fees.

Potentially more serious in light of the labor lawsuits is that Mr. Fuknaga signed his memo ' FUKUNAGA Masaaki, The Second Vice President, FCCJ'.

Thus, it is a legal document. The memo is material evidence in at least two of the club's lawsuits. Whether his claims against Georges are founded or unfounded is not really relevant. He made them while serving as the fiduciary in charge of personnel matters. He made them while the judges in both staff lawsuits were receiving and evaluating evidence. He concealed material evidence from the Tokyo Labor Commission and Tokyo District Court. So did our lawyers because they were on the cc-list

From: FUKUNAGA Masaaki <office@fukunaga.cc>
Cc: Kazutoshi Kakuyama <kazutoshi.kakuyama@amt-law.com>; 弁護士横木雅俊 <yokogi@ym-partners.com>; 篠原芳宏 <shinohara@ym-partners.com>;
Sent: Sun, Nov 18, 2012 7:19 pm

T hree weeks earlier on Nov. 1 , 2012, Mr. Fukunaga took the exact opposite position in a nother memo to Georges . "We've got to get them out of the club as soon as possible , " he wrote in his 'Mr. Hyde' message .

'Them' were three of the s even employees who had litigated against the Board one year earlier and won a favorable settlement negotiated by the club's previous lawyer, former Japanese Supreme Court judge Kunio Hamada. Mr. Fukunaga's email to Georges is evidence of a double-deal with the union ( again, see Fukunaga Files-2).

Today, the Board has a two-month window to settle with the union. The two sides have been involved in a protracted negotiation (wakai) at the Tokyo Labor Commission. We must reach a settlement by the middle of October. If we don't, I suspect that the union will take its claim to Tokyo District Court. It's invested three years. New evidence has surfaced that the club wasn't 'going bankrupt' at the time of the mass-firings. Mr. Fukunaga's emails are indefensible. That's not a legal opinion. That's common sense.

The union's case would appear to be stronger than it was in 2012.

Moreover, t he Board has already agreed to pay. The only thing the Board hasn't agreed on is how much. T he judge handling the case is trying to bring the two sides together on the amount and - and this is important - to join both litigations in the settlement .

The previous Board claimed that we had no money . B ut w e have money to pay our lawyers $60,000 per year - to negotiate. So far they've attended more than 20 hearings in a losing effort. How many more if we don't settle? And who profits if we don't settle?

My sources tell me that the difference between the two sides is less than our annual legal fees budget.

The good news is that o ur new Board and particularly Mr. Otsuka ha ve an opportunity to bring closure to the lawsuits. It is one thing to be fed half-truths and given incomplete information and dispe n se millions of yen of members' money. It is another thing to know that what you've been told has been largely un true - and still sign checks.

It is our money, Mr. Otsuka. Several months ago I asked if you had read my reports to the Board. You said no. This time I've sent the m through the club 's office .

Mr. Fukunaga's Nov. 18, 2012 memo follows:

Original Message
From: FUKUNAGA Masaaki <office@fukunaga.cc>
To: Mr. Georges Baumgartner < Baum@fccj.or.jp >; Mr. Martin Koelling < koelling.martin@gmail.com >; Mr. Masaaki Fukunaga < office@fukunaga.cc >; Ms. Suvendrini Kakuchi < suven@kdp.biglobe.ne.jp >; Mr. Jonathan Soble < jonathan.soble@ft.com >; Ms. Lucy Birmingham < lucybirmingham@gol.com >; Mr. Yoshio Murakami < ymura kamiy@aol.com>; Mr. Yozo Hasegawa <yozohase@aol.com>; Mr. Tetsuo Jimbo <tjimbo@videonews.com>
Cc: Kazutoshi Kakuyama <kazutoshi.kakuyama@amt-law.com>; 弁護士横木雅俊 <yokogi@ym-partners.com>; 篠原芳宏 <shinohara@ym-partners.com>; Mr. Larry Cisar <ljcbe ar@gmail.com >; Mr. Charles Pomeroy < charlesp@coffee.ocn.ne.jp >; obayashi kenji < 1939ko@mpd.biglobe.ne.jp >; Rike Wootten < rike@gotairiku.com >; 斉藤勇夫 < foresigh@wc4.so-net.ne.jp >; Nakamura < nakamura@fccj.or.jp >; Hiroshi Koyama < hkoyama1@gmail.com >
Sent: Sun, Nov 18, 2012 7:19 pm
Subject: From FUKUNAGA

Dear All,
 
In light of President’s continued interference in HR matters, in violation I think of FCCJ Bylaws, General Manager’s Job Description and previous Board decisions, I have decided to let the President make direct handling of personnel matters with staff and the Union.
 
I will continue my duties to “assist the Board and General manager” with my advice and to report to the Board and general membership.

But I will do nothing I think is illegal or unfair and I support GM Mr. Nakamura to do his duties in Bylaws and contract.
 
1. I do not, as other committee chairpersons, serve at “pleasure” of the president. I was elected to HRC chairperson and have specified duty.
---
<Bylaws Section Sixteen- Paragraph 16-1>
 
“The President shall appoint committee chairs except where they are specified. Chairs of standing committees, except where specifically designated under these Bylaws, shall serve at the pleasure of the President.”
 
“b. Human Resources Committee. To assist the Board and General Manager regarding personnel and related matters, with the Second Vice President as chair, understanding that all staff report to the General Manager who implements all personnel policies and who reports to the Board.
 
The committee also shall act as a grievance panel in the event that a staffer has a dispute with the General Manager, or the General Manager has a dispute with the President.”
---
2. The HRC submitted the Report to FCCJ Board of Directors meeting on November 14, 2012.

Please find the attached Report. The HRC has emphasized the following points;

a) Establishment of compliance
 
b) Execution of HR management by the advice of lawyers
 
c) Activities suitable for the timing of multiple lawsuits
 
And, the Committee have explicitly approved the Personnel Policies Report of the GM Mr. Nakamura and instructed him to promote further activities.
 
3. For the last several weeks, the President Mr. Georges Baumgartner has repeatedly interfered in the current HR situation.

He interfered into the GM’s "evaluation of certain employees". He pressured GM Mr. Nakamura to "seek pay cuts and layoffs" of certain employees. He even pressure the GM to "fire" certain employees and attack club’s union against lawyer Mr. KAKUYAMA’s advice.
 
I believe the President prejudice our case against union and made legal exposure to club. Damage is already done.
 
4. The President made his remarks many times and put much pressure on the GM Mr. Nakamura to perform illegal or “unfair labor practices (FUTO-RODOU-KOI､不当労働行為)”.

It is in my opinion clear case of “power harassment.” GM Mr. Nakamura was told by Mr. KAKUYAMA to follow strict conduct with staff because FCCJ is currently in transition period of outsourcing and the cases at The Tokyo Labor Commission and the Tokyo District Court.

5.   On October 25, the President, myself and GM Nakamura met with Mr. KAKUYAMA at his office.

Mr. KAKUYAMA explained the current situation of HR issues and the legal cases.   Then, he also requested the President that to wait for "good timing" to take actions. But, the President ignored Mr. KAKUYAMA’s advice and kept strong pressure on GM Mr. Nakamura to do things not legal. I wrote one email to the President on November 1, 2012 urging him to his pressure. I attached email as a file.
 
6. After executive session at last week’s Board meeting, the President expressed the inappropriate policies which he made while completely ignoring HRC Report.

Next day after BoD meeting, he sent email to several officials including some BoD members and the GM. It is said that;
---
"In order to that we have to reduce salaries, bonuses (Bonuses in Japan have been declining for the past two consecutive years) and to offer early retirement to our highest paid employees.
 
I have asked Nakamura- san to come with a plan to achieve that goal."
---
This order is against Mr. KAKUYAMA’s advice and HRC recommendation (based on Mr. KAKUYAMA’s advice) and is proof of unfair and possibly illegal instruction by the President to the GM. The President has taken over duties given to Second Vice President in Bylaws.

I must formally disassociate with President’s policy and inform club’s lawyer Mr. KAKUYAMA that his advice is ignored.
 
7. After the General Membership Meeting in March, 2012 and decision to outsource FCCJ F&B operation, I was appointed to the Board as Director at Large.

In June, I was elected Second Vice President. This was very painful job for me because we did hard negotiation with Club’s Union and terminate contract of about 50 employees.

I did my duty but also tried, as I promised in my election, to protect jobs as possible. I did everything in accordance with advices by Mr. KAKUYAMA and with purpose to assist GM Mr. Nakamura. As a result, FCCJ will be apply as the new status of "Koeki Shadan Hojin".

But I think now we can’t based on President’s action. Because of President’s interference and illegal action, I must let him take over HR duties according to Article 28. I will monitor and report if I see illegal action, but the President is now responsible as “the Chief Executive Officer”.
---
<Article 28>
“The President shall be the chief executive officer of this Association. He shall represent the Association, conduct its day-to-day affairs, maintain order, DIRECT EMPLOYEES STAFF, appoint committees. He shall do all other things appropriate for the welfare and the attainment of the Association's objectives
in cooperation with the Board of Directors.”
---
The President should be represented the Board at the Collective Bargaining with the Union.

The President must be expressed the new HR policies which he clearly mentioned above to the all employees by his own words. The FCCJ can provide the professional interpreter for him, but spending approved by BOD.

Of course, I will also attend the Collective bargaining, but will not speak for Board.

Next session is scheduled at 15:30 on November 20, 2012.
 
I cannot follow President’s instruction to do illegal or unfair labor practice to FCCJ employees. And I refuse to tell lie for the President.
 
Thank you for your understanding and cooperation of all of you.
 
With regards,
FUKUNAGA Masaaki
The Second Vice President, FCCJ"

More from Roger Schreffler

"It is rare to be given an insiders' look at a coverup, especially a coverup involving a press club.

Kenn Cukier left Japan before the March 2012 general membership meeting when the club's Board of Directors sat in silence after Anthony Rowley and Karel van Wolferen raised questions about the viability of the outsourcing ag...reement with the Alaska restaurant group, the club's first outsourcing candidate. Not only did Anthony and Karel raise questions, they put forward a formal resolution.

From the meeting transcript and tape: “ So we want to move a motion that the memorandum of understanding with Alaska be rescinded pending further consideration of critical human resource, welfare, legal, financial and other issues involved."

Again, no comment from anyone on the Board seated at the head table including the club's immediate past president, Lucy Birmingham. Fukunaga was traveling, thus didn't attend the meeting - thus can't be blamed for the Board's silence. But Fukunaga gave me Cukier's November 2011 email in which Cukier specifically mentions Birmingham's name in assisting him with drafting the settlement agreement which, as mentioned, the club's lawyer, Judge Hamada, filed in Tokyo District Court on Feb. 1, 2012 (see Fukunaga Files-2).

On June 10, 2015, Birmingham and Fukunaga handed out a ' legal case' update to the membership - mentioning the ex-presidents by name, mentioning me by name, mentioning staff by name. Not mentioned in their handout was the Feb. 1 settlement and invoice from Judge Hamada dated Feb. 6, 2012 (see below).

Personal to James Simms and Otsuka-san, the club's current treasurer : I hope you both realize that it is one thing to disburse members' money when you are unaware of the facts of a particular case. It is entirely another matter when you've been informed.

You have now been informed.

Roger Schreffler



February 6, 2012

Hibiya Park Law Offices
Hibiya Park Marine Building
5-1 Yurakucho 1-chome
Chiyoda-ku
Tokyo 100-0006 Japan
Tel: 81-3-5532-8088
Fax: 81-3-5532-8807

To: The Foreign Correspondents Club
Yurakucho Denki Building, 20th Fl
7-1, Yurakucho 1-chome
Chiyoda-ku
Tokyo 100-0006

For professional services rendered

In conjunction with the court case between seven employees of FCCJ plaintiffs and FCCJ defendant at the Tokyo District Court (29605 of 2011), attorneys' fees:

Attorney fees:

Kunio Hamada ¥660,000
Taku Nomia ¥1,330,000
Naoki Ogawa ¥548,000

Subtotal ¥2,538,000

Expenses
Taxi fare ¥4,260
Train fare ¥320
Delivery fee ¥1,000
Taxes

Consumption taxes ¥126,900
Withholding tax -¥408,716

Total ¥2,261,764


February 6, 2012
Hibiya Park Law Offices
Hibiya Park Marine Building
5-1 Yurakucho 1-chome
Chiyoda-ku
Tokyo 100-0006 Japan
Tel: 81-3-5532-8088
Fax: 81-3-5532-8807

To: Mr. Georges Baumgartner, FCCJ president
Yurakucho Denki Building, 20th Fl
7-1, Yurakucho 1-chome
Chiyoda-ku
Tokyo 100-0006

Dear Mr. Baumgartner

Please find enclosed herewith our statement for services rendered in the court case between the seven employees of FCCJ plaintiffs and FCCJ defendant at the Tokyo District Court (No. 29605 of 2011), which was successfully settled before the court on February 1, 2012.

In accordance with our agreement with FCCJ, the total amount of our fee (exclusive of consumption taxes thereon) which would have amounted to slightly above ¥4 million at our normal hourly rates for attorneys involved is reduced very substantially to ¥2,538,000. Please note that the time spent in total amounted to 113 hours (Hamada, 22 hours, Nomia, 47.5 hours, and Ogawa 43.5 hours)

We trust you appreciate that such reduction is very exceptional and that such reduced hourly rates will not be available in the future if we are called upon to serve you again. It was our pleasure serving FCCJ in this matter. We hope that FCCJ be successful in the forthcoming transformation of its corporate status in 2012.

Very truly yours,

Hamada, Yukio
Attorney at Law

cc: Akira Nakamura, FCCJ

More from Roger Schreffler:

Following is the settlement agreement of the first staff lawsuit which the club's Board of Directors lost and never reported to the membership. Fukunaga is aware that the Board failed to inform the membership of the agreement to at the March 14, 2012 general meeting when the koeki and outsourcing proposals were approved. ...I provided a copy of the settlement agreement to William Sposato, the FCCJ's kanji, in fall 2013.

The timeline:
April 1, 2011. The Board demotes seven middle-management employees and cuts their salary.
Sept. 7, 2011. The seven employees, all members of the Japan Federation of Newspaper Workers' Union (Shimbun Roren), file a claim in Tokyo District Court over their wrongful demotions and pay cuts.
November 2011. The club's attorney, former Japanese Supreme Court Judge Kunio Hamada, advises the Board to negotiate a settlement because the Board was at fault and violated the club's work rules in demoting the employees
Feb. 1, 2012. Mr. Hamada and Shimbun Roren's lawyers file the settlement agreement in Tokyo District Court including ¥2.5 million in back pay and damages plus an apology.
Feb. 6, 2012. Mr. Hamada, a club associate member, submits his invoice for ¥2.3 million after taxes.
Feb. 29, 2012. The treasurer, Jonathan Soble, authorizes disbursements of ¥4.8 million: ¥2.5 million to FCCJ employees and ¥2.3 million to the lawyer. Soble authorized the disbursements without Board approval and without a budget for legal services.
March 14, 2012. The Board makes no mention of the lawsuit and settlement agreement in its koeki/outsourcing presentation at the March 2012 general membership meeting.
June 6, 2012. The Board back-files the settlement agreement and law firm disbursement to the Feb. 15, 2012 Board meeting minutes. Meaning: The Board did not report the disbursements to the club's external auditor.
June 10, 2015. FCCJ president Lucy Birmingham makes a presentation about the lawsuits at the June 2015 general membership meeting and omits the first lawsuit which the Board had lost.

The Feb. 1, 2012 settlement agreement follows:

第3回弁論準備手続調書（和解）

事件の表示 平成23年（ワ）第29605号地位確認等請求事件
期 日 平成24年2月1日午後4時00分
場 所 等 東京地方裁判所民事第11部準備手続室
裁 判 官 西 村 康一郎
裁判所書記官 渡 逃 俊 行
出頭した当事者等 原告 NAME DELETED
同 NAME DELETED
同 NAME DELETED
同 NAME DELETED
同 NAME DELETED
原告ら代理人 鷲見 賢一郎
同 生駒 巌
同 向野 まゆこ
被告代理人 野宮 拓
同 小川 直樹
当 事 者 の 陳 述 等
当事者間に次のとおり和解成立

第1 当事者の表示
ADDRESS DELETED
原 告 NAME DELETED
ADDRESS DELETED
同 NAME DELETED
ADDRESS DELETED
同 NAME DELETED
ADDRESS DELETED
同 NAME DELETED
ADDRESS DELETED
同 NAME DELETED
ADDRESS DELETED
同 NAME DELETED
ADDRESS DELETED
同 NAME DELETED
上記7名訴訟代理人弁護士 鷲見賢一郎
同 生駒 巌
同 久保木亮介
同 向野まゆこ
ADDRESS DELETED
被告 社団法人日本外国特派員協会
同代表者理事 ジョージずウムガルトナー
同訴訟代理人弁護士 演田邦夫
同 野宮拓
同 小川直樹

第2 請求の表示
請求の趣旨及び原因は訴状のとおり

第3 和解条項
1 被告は，原告らに対し，平成23年4月1 日付けで原告らに対して行った別
紙1③記載の地位への降格処分及び責任者手当の減額処分を撤回する。
2 被告は，原告らに対し，平成23年4月1日以降，原告らが別紙1②記載の
地位にあり，かつ，1か月あたり別紙1④記載の責任者手当の支払を受ける地
位にあることを確認する。
3 被告は，原告らに対し，別紙1⑤記載の各原告の未払い責任者手当（平成2
3年4月から平成24年1月までの間の責任者手当不足合計額と同期間にお
ける残業代支払合計額を調整した額）の支払義務があることを認める。
4 被告は，各原告に対し，別紙1⑤の未払い責任者手当欄記載の各金員（源泉
徴収税額控除前）を，平成24年2月29日限り，持参又は送金して支払う。
ただし，被告が同金員を任意に支払う場合は，源泉徴収税額を控除することが
できる。
5 被告は，原告らに対し，本件解決金として，原告一人につき15万円の合計
105万円の支払義務があることを認める。
6 被告は，原告らに対し，前項の金員を，平成24年2月29 日限り，みずほ
銀行新宿南口支店の「代々木総合法律事務所飯田幸光（ョョギソウゴウホウリ
ツジムショイイダユキミツ）」名義の普通預金口座（口座番号1 0 1 1 5 9 0)
に振り込む方法により支払う。
7 被告は，原告らに対し，本件降格処分及び責任者手当の減額処分によって労
使関係に混乱をもたらしたことについて，遺憾の意を表する。
8 原告らはその余の請求を放棄する。
9 原告らと被告は，原告らと被告との間には，本件に関し，本和解条項に定め
るもののほか，何らの債権債務のないことを相互に確認する。
10 訴訟費用は，各自の負担とする。

裁判所書記官 渡 過 俊 行

Following is a partial transcript of a translation of the agreement back-filed to the Feb. 15, 2012 minutes:

Case No. 29605
Date: Feb. 1, 2012
Place: Tokyo District Court, Civil Affairs No. 11 Section
Judge: Koichiro Nishimura
Court Secretary: Toshiyuki Watanabe
Attending Complainant: seven FCCJ staff

Settlement clauses:

1) Defendant will withdraw the demotions and managers' allowance reductions that was enforced upon complainants as of April 1, 2011.

2) Defendant confirms that complainants hold the position after April 1, 2011 and they are entitled to receive managers' allowance.

3) Defend ant acknowledges the payment responsibility to complainants of unpaid managers' allowance including insufficient amount of managers allowance after offsetting overtime allowance total from April 2011 until January 2012.

4) Defendant will hand-deliver to remit the amount of complainants unpaid managers' allowance as listed in the attachment without withholding tax by Feb. 29, 2012.

5) Defendant agrees to pay ¥150,000 per head totaling ¥1,050,000 as the settlement fee.

6) Defendant will remit the amount by Feb. 29, 2012.

7) Defendant will offer the expression of regret to the complainants about the confusion to the employer-employee relationship due to the demotion and reduction of managers' allowance.

8) Complainants will discard any other payment requests.

9) Complainants and defendants confirm to each other that the settlement clauses are established and there will be no credits and debts between defendant and complainants.

10) Litigation cost is responsible by individual.

Court Secretary, Tosiyuki Watanabe