NEC Corp. said Tuesday it has agreed with its 16,000-strong labor union on an emergency cost reduction measure to cut monthly wages by 4 percent from April through December.
The electronics maker proposed the wage cut March 15 in response to its worsening business performance. In labor-management talks, NEC had said it would maintain its wage system for seniority-based regular pay hikes while seeking negotiations on measures to cut labor costs.
The two parties also agreed on slashing overtime pay and reviewing the company’s welfare-related expenses, NEC said.
Following the accord, the firm, which plans to shed around 10,000 jobs worldwide as part of restructuring, will hold talks with the union on the plan’s details.
“The agreement is a result of labor and management sharing the view that the company is under severe circumstances,” a union official said, adding that the union judged it necessary to cooperate with management to turn the company around.
NEC expects to post a consolidated net loss of ¥100 billion in the current business year, which ends Saturday, after being hit by massive flooding in Thailand and sluggish mobile phone operations.
Renesas to sell plant
Renesas Electronics Corp. plans to sell to Fuji Electric Co. its Aomori Prefecture plant that manufactures automobile semiconductors, sources said Tuesday.
The major semiconductor maker aims to improve its performance by consolidating and enhancing production efficiency, as the company expects to see a ¥57 billion net loss for the current business year ending this month.
The plant belongs to subsidiary Renesas Northern Japan Semiconductor Inc.
Renesas may also sell its Tsuruoka plant in Yamagata Prefecture held by another unit, Renesas Yamagata Semiconductor Co.