Nissho Iwai Corp.’s union has accepted the company’s proposal to pay no bonuses to nonmanagement staff this summer, union members said Friday.
The union gave in to the struggling trading house at an executive board meeting Thursday and has notified members.
A formal agreement is expected to be finalized next week, the union members said.
In February, Nissho Iwai proposed that nonmanagement staff receive no bonuses for the summer and winter of the current fiscal year through March 31.
After labor-management negotiations, the company proposed June 2 that it would pay winter bonuses equivalent to 0.2 of a month’s pay. The union accepted the proposal.
On April 1, Nissho Iwai and trading house Nichimen Corp. integrated their management under a holding company — Nissho Iwai-Nichimen Holdings Corp. — in a bid to rebuild the struggling businesses.
Nissho Iwai has begun restructuring efforts and has decided to cut the salaries of its management staff by about 20 percent.
Nissho Iwai paid bonuses worth 2.7 months’ pay to its nonmanagement staff in fiscal 2002.
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