All Nippon Airways Co. is proposing that its unions accept a plan to cut annual wages by an average of 6 percent for all group employees, sources said Friday.
To move is being suggested to save up to ¥14 billion in personnel costs to deal with the sharp drop in demand during the global economic downturn. The wages of managerial employees would be cut by around 20 percent under the proposal, including basic pay and other benefits, the sources said.
Regular employees will see smaller pay cuts in the range of a few percent, the sources said.
But the company may reduce the size of the cut because it anticipates fierce opposition from the unions. The ANA group has a workforce of about 30,000.
The wage cut would be the first in five years since ANA carried out a 5 percent cut to senior officials' wages in 2003 and a 5 percent cut in basic pay for regular employees in 2004. To address rapidly deteriorating business conditions, ANA carried out a 10 percent to 30 percent cut in executive pay in January.