Sharp to terminate wage cuts in March
(Japan Economic Newswire Via Acquire Media NewsEdge) OSAKA, Jan. 22 -- (Kyodo) _ Sharp Corp. is planning to terminate at the end of March wage cuts it imposed on employees in fiscal 2012, company sources said Wednesday.
With the step, Sharp hopes to bolster the morale of its employees on the back of improvement in its earnings performance, the sources said. The company's group operating balance returned to the black in the April-September period of 2013.
Sharp introduced cuts on employees in managerial posts in April 2012 and on rank-and-file employees in May that year.
The wage cuts were originally scheduled to end at the end of last September but the electronics maker extended the duration as it determined further cuts in personnel expenses are necessary to improve its financial results.
In the six-month period through March 31, the size of the reduction is set at 5 percent for managers and 2 percent for rank-and-file workers.
The administration of Prime Minister Shinzo Abe has been calling on the business community to increase wages to beat Japan's chronic deflation. Among consumer electronics giants, Mitsubishi Electric Corp. and some others have shown readiness to implement hikes in pay scales.
(c) 2014 Kyodo News International, Inc.
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