Kanematsu Textile Corp., a subsidiary of trading house Kanematsu Corp., has abolished its system of providing employees with a lump sum payment at retirement and will raise monthly wages instead, company officials said Wednesday. The move was in response to requests from employees and a trend in the textile and apparel industry of workers transferring to other companies midway through their careers, the officials said. Kanematsu Textile was established last month in a spinoff of the trading house's textile division. About 170 division employees were transferred to the subsidiary. At the time, those workers received lump sum allowances from the parent company. On the other hand, their wages at the subsidiary were lower than at their former employer. Following the abolishment of retirement payments, monthly salaries for the workers will be raised to the same levels as at the parent company, they said.
