The trail from Shinei led police to a slightly larger neighboring company with about 30 employees, Fujisai Couken. Fujisai says it was under pressure from a larger contractor, Raito Kogyo, to provide workers for Fukushima. Kenichi Sayama, Fujisai's general manger, said his company only made about $10 per day per worker it outsourced. When the job appeared to be going too slowly, Fujisai asked Shinei for more help and they turned to Nishimura.
A Fujisai manager, Fuminori Hayashi, was arrested and paid a $5,000 fine, police said. Fujisai also paid a $5,000 fine.
"If you don't get involved (with gangs), you're not going to get enough workers," said Sayama, Fujisai's general manager. "The construction industry is 90 percent run by gangs."
Raito Kogyo, a top-tier subcontractor to Obayashi, has about 300 workers in decontamination projects around Fukushima and owns subsidiaries in both Japan and the United States. Raito agreed that the project faced a shortage of workers but said it had been deceived. Raito said it was unaware of a shadow contractor under Fujisai tied to organized crime.
"We can only check on lower-tier subcontractors if they are honest with us," said Tomoyuki Yamane, head of marketing for Raito. Raito and Obayashi were not accused of any wrongdoing and were not penalized.
Other firms receiving government contracts in the decontamination zone have hired homeless men from Sasa, including Shuto Kogyo, a firm based in Himeji, western Japan.
"He sends people in, but they don't stick around for long," said Fujiko Kaneda, 70, who runs Shuto with her son, Seiki Shuto. "He gathers people in front of the station and sends them to our dorm."
Kaneda invested about $600,000 to cash in on the reconstruction boom. Shuto converted an abandoned roadhouse north of Sendai into a dorm to house workers on reconstruction jobs such as clearing tsunami debris. The company also won two contracts awarded by the Ministry of Environment to clean up two of the most heavily contaminated townships.
Kaneda had been arrested in 2009 along with her son, Seiki, for charging illegally high interest rates on loans to pensioners. Kaneda signed an admission of guilt for police, a document she says she did not understand, and paid a fine of $8,000. Seiki was given a sentence of two years prison time suspended for four years and paid a $20,000 fine, according to police. Seiki declined to comment.
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In Fukushima, Shuto has faced at least two claims with local labor regulators over unpaid wages, according to Kaneda. In a separate case, a 55-year-old homeless man reported being paid the equivalent of $10 for a full month of work at Shuto. The worker's paystub, reviewed by Reuters, showed charges for food, accommodation and laundry were docked from his monthly pay equivalent to about $1,500, leaving him with $10 at the end of the August.
The man turned up broke and homeless at Sendai Station in October after working for Shuto, but disappeared soon afterwards, according to Yasuhiro Aoki, a Baptist pastor and homeless advocate.
Kaneda confirmed the man had worked for her but said she treats her workers fairly. She said Shuto Kogyo pays workers at least $80 for a day's work while docking the equivalent of $35 for food. Many of her workers end up borrowing from her to make ends meet, she said. One of them had owed her $20,000 before beginning work in Fukushima, she says. The balance has come down recently, but then he borrowed another $2,000 for the year-end holidays.
"He will never be able to pay me back," she said.
The problem of workers running themselves into debt is widespread. "Many homeless people are just put into dormitories, and the fees for lodging and food are automatically docked from their wages," said Aoki, the pastor. "Then at the end of the month, they're left with no pay at all."
Shizuya Nishiyama, 57, says he briefly worked for Shuto clearing rubble. He now sleeps on a cardboard box in Sendai Station. He says he left after a dispute over wages, one of several he has had with construction firms, including two handling decontamination jobs.
Nishiyama's first employer in Sendai offered him $90 a day for his first job clearing tsunami debris. But he was made to pay as much as $50 a day for food and lodging. He also was not paid on the days he was unable to work. On those days, though, he would still be charged for room and board. He decided he was better off living on the street than going into debt.
"We're an easy target for recruiters," Nishiyama said. "We turn up here with all our bags, wheeling them around and we're easy to spot. They say to us, are you looking for work? Are you hungry? And if we haven't eaten, they offer to find us a job."
(Reporting by Mari Saito and Antoni Slodkowski, additional reporting by Elena Johansson, Michio Kohno, Yoko Matsudaira, Fumika Inoue, Ruairidh Villar, Sophie Knight; writing by Kevin Krolicki; editing by Bill Tarrant)
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