• JIJI, Kyodo


The labor union at MUFG Bank plans to scrap its current system of seeking pay scale hikes at a uniform rate for all workers in this year’s shuntō labor management talks, it has been learned.

Based on a proposal from the management side, the union will demand an increase in total pay combining salaries and bonuses for all employees, while accepting that the salary portion may differ from employee to employee according to their personnel evaluation, sources said.

In the automobile industry, the labor union at Toyota Motor Corp. has decided to allow the company to expand the gaps in pay scale hikes among employees based on the results of personnel assessments in this year’s shuntō negotiations.

The moves by the unions at MUFG Bank, one of the biggest banks in Japan, and the automaker may prompt labor unions at other firms in the country to follow suit, analysts said.

Last month, Keidanren, the nation’s most powerful business lobby, called for a review of the practice that sees industrywide labor unions demand a uniform raise in base pay, saying the performances of individual companies and employees should be reflected.

During last year’s shuntō, MUFG Bank proposed to the labor union that the two sides negotiate total wage levels in future negotiations and that differences be introduced to the size of increases in the salary portion.

After nearly a year of negotiations, the two sides are likely to reach an agreement on the new system shortly, according to the sources.

Sumitomo Mitsui Banking Corp. last month switched to a new pay system that sets gaps in salary levels depending on personnel assessments. Mizuho Financial Group Inc. plans to introduce a personnel evaluation system centered on employees’ work performances.

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