Matsushita eyes profit-driven wages

OSAKA — Matsushita Electric Industrial Co. plans to introduce different wage systems for 14 planned in-house divisions that would be commensurate with the profitability of each division, Matsushita officials said Friday.

Under the plan, scheduled to go into effect in April 2004, the size of bonuses would vary in proportion to profitability of each division, the officials said.

In the initial phase, the basic monthly wage portion of workers’ allowances at each division would remain the same, they said.

Later, the company envisions making the basic monthly wage portion at each division commensurate with varying profitability, they said.

In January, Matsushita plans to reorganize the group’s operations into the 14 in-house divisions at the parent as well as subsidiaries.

In line with the reorganization, Matsushita wants to introduce wage systems that would differ at each division with an eye to more efficiently distributing financial resources for personnel costs, they said.