OSAKA — Matsushita Electric Industrial Co. is planning to reduce or abolish regular annual pay hikes awarded under its seniority-based system, company officials said Tuesday.
The consumer electronics firm will issue the proposal to a union representing employees at the firm after the union submits its demands Thursday for the spring round of wage negotiations, the officials said.
Matsushita’s plans are expected to have a considerable impact on the industry’s spring wage talks.
The Japanese Electrical Electronic and Information Union, which comprises unions representing workers at electric machinery makers, has already stated it will seek to retain these automatic annual hikes.
The firm wants to reduce or scrap automatic raises for all staff within the Matsushita group who are middle-aged or older and who have worked at a Matsushita firm for a certain number of years.
In January, Matsushita informally decided to reorganize all group operations into 14 divisions, with workers’ wages reflecting the profitability of each division.
By drastically revising the regular annual raise system, Matsushita hopes to limit labor costs and boost profits.
“We are aware that they are thinking of such a thing, but nothing has been decided yet,” said one union official.
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