The city had been using a subcontracting arrangement, until the Osaka Labour Bureau ordered that the city correct its practice forcing the city to take on direct hires. Under the former subcontracting arrangement with Maxceed, all of the Junior High School ALTs were given daily wages, no health insurance, no paid holidays or sick leave. They also had to endure short term contracts with no guarantee of continued employment. Matsubara city was one of twenty-four cities in Osaka Prefecture that admitted to using subcontracting. Alarmed that the BoEs were ignoring the Ministry of Labour’s September 2004 guidance regarding ALT positions, the General Union contacted the Osaka Labor Bureau on behalf of union members in Matsubara in early 2007. The Osaka Labor Bureau judged that Matsubara was using subcontracting incorrectly and ordered them to change their practice. The General Union and members met with the Matsubara BoE in June of 2007, and the Matsubara BoE stated that they would consult with the Osaka Labor Bureau. The result – Matsubara is now hiring ALTs directly.