Electronics maker Seiko Epson Corp. will stop giving set annual wage increases based on age to all union members in April, company officials said Wednesday. The move is aimed at enhancing the company's international competitiveness by promoting merit-based raises and reducing overall labor costs.
In the precision electronic equipment industry, Canon Inc. has already stopped raising pay annually in accordance with age.
Seiko Epson also said it will stop paying family allowances for about 4,600 foremen. The company has some 11,600 union members.