Business / Corporate

Japanese air conditioner-maker Daikin to raise retirement age to 65

JIJI

Major air conditioner-maker Daikin Industries Ltd. will raise the retirement age for its employees from 60 to 65 in April next year if the company obtains its labor union’s consent, company officials said Friday.

Daikin thinks that the extended employment of veteran workers will be necessary so they can better hand down their skills and know-how to younger workers, the officials said.

Along with the rise in the retirement age, the company will revise its five-year rehiring program to newly allow employees to work until 70 years of age, if they wish to do so.

Currently, about 90 percent of Daikin employees choose to be rehired after reaching 60 despite pay cuts of around 30 percent.