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In another sign of the worsening global economy, Sony Corp announced yesterday to Reuters that it will freeze its workers salaries during 2009. The wage freeze was specifically designed to counter the record loss of 260 billion yen for 2008 because of slower global sales. According to Sony spokeswoman Mami Imada in an interview with Reuters, "This time we decided to keep the workers' salaries unchanged." This is significant because salaries don't automatically rise based on seniority, as it does in most Japanese companies; instead, pay increases are set each year based on role and individual performance. This new wage freeze follows an announcement from January that managers pay would drop up to 20 percent through wage cuts and would find bonus reductions of up to 40 percent. Further, the bonuses for Sony's workers would be cut from six months to four months.
Apparently, Sony's moves could spark a similar trend across other Japanese companies. Toshiba Corp, NEC Corp and Hitachi Ltd mentioned that each company was considering similar actions for workers for this year.
source
ooowwww ouch!
Apparently, Sony's moves could spark a similar trend across other Japanese companies. Toshiba Corp, NEC Corp and Hitachi Ltd mentioned that each company was considering similar actions for workers for this year.
source
ooowwww ouch!
