Nissho Iwai Corp. has proposed to its union that it pay no bonuses to nonmanagement staff in the business year starting April 1, a move that would effectively cut their annual salaries by about 20 percent, company officials said Monday.
The proposal, made by the struggling trading house Thursday, is aimed at accelerating restructuring ahead of its April business integration with Nichimen Corp., another troubled trader, the officials said.
Nissho Iwai is also considering slashing the salaries of its management staff by about 20 percent, they said. Unlike other workers, management staff are paid on a merit-based system.