|
 For a second year, Abe is pressuring major companies to raise base
pay in the fiscal year from April, and boost investment, to
kick-start a positive cycle of higher wages, profits and prices to
end 15 years of deflation.
Japan's main union of electronics workers is likely to demand a hike
of over 2 percent in base pay, and companies are widely expected to
comply. Most Sony workers, however, don't belong to the Japanese
Electrical Electronic & Information Union, and the company's average
pay of 8.85 million yen ($74,000) is among the industry's highest.
Sony is going through a painful restructuring after cutting its
earnings forecasts six times in two years, and the once-storied
electronics maker said earlier this year it will overhaul its salary
structure for the first time in a decade, without elaborating on
expected changes in pay.
"We are at this time studying various issues as Sony overall is in a
difficult situation," spokeswoman Yo Kikuchi told Reuters. "The
current human resources system was put in place around 10 years ago,
so it was also time for a review."
Pay cuts are unusual in Japan, especially at big companies with
their tradition of jobs-for-life and seniority-based compensation.
Employers typically adjust to hard times by trimming bonus and
overtime pay and hiring fewer new graduates.
While Japan's economy is fitfully recovering under 'Abenomics', with
profits at record highs, Sony remains in a defensive mindset. In
September, the company widened its annual net loss forecast to 230
billion yen from 50 billion yen and scrapped its dividend for the
first time since going public.
IMPROVED MERITOCRACY
Kikuchi said details of the pay cuts have not been decided, although
the overall average is likely to decline. The overhaul will focus on
improving meritocracy, meaning employees who do not hold management
titles but are in leadership roles may be paid more, while some
others could see a cut.
[to top of second column] |
"First and foremost, we're hoping employees can be paid and graded
according to the roles they play. Cost effectiveness should improve
as a result," she said.
Takahiro Nonaka, general secretary of the electronics union, said it
has not yet set its official position, but higher pay is crucial for
the economy. The union is likely to demand the same 2 percent rise
as Japan's pace-setting metal workers' union, which includes
carmakers.
"Personal spending, which accounts for around 60 percent of GDP,
needs to grow," Nonaka told Reuters. "We want to share that
understanding with companies as we negotiate."
(Additional reporting by Reiji Murai; Editing by William Mallard and
Ian Geoghegan)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
