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Mid-term Business Strategy
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| Business
Restructuring: Japan (3) |
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| Changing
Employment and Salary Systems |
1. 10% reduction of total
labor costs
| Step 1 |
Allocation of personnel to companies within
and outside the NSK group, Reduction of contract
workers, Reduction of overtime/holiday-work |
| Step 2 |
Review of shift-work allowances, per diem,
benefits, etc.
Reduction of working hours (Trial) |
| Step 3 |
Flexible review of annual total salary
(Executive officers: -40%, Managers: -10%,
Union members: -X%) |
2. Establishment of a new human resource and salary
system through spin-offs
- New salary system---Consideration of the introduction
of performance-
linked salary, semi-annual performance-linked
bonuses
- Changing working hours to match the characteristics
of each business unit.
- Introduction of a new evaluation system (Including
shop-floor operators)
3. Measures for surplus workers
- Reduction of contract workers and temporary
staff
- Promotion of job-function changes (IT and
logistics personnel)
- Reinforcement of the Manpower Supply Department
- Early retirement programs
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Next we will look into the reforms for our employment
and salary structure.
We are afraid that if we continue to accept
the internationally high salary level and rigid employment
systems of Japan, we will be unable to maintain employment
in this country.
We are currently assigning employees to companies
outside the NSK group, cutting work hours as a trial
measure, and reflecting our business results onto
employees' annual salary. All efforts are being made
to cut labor costs by 10%.
Furthermore, we are in close negotiations with
our labor union to establish a new, more flexible
and competitive salary, employment and evaluation
system.
We also plan to promote actions such as job-function
changes in order to solve our problem of a surplus
workforce.
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