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Unswerving cyclist
14 Mar 2002
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Times are a-changing...

Honda abolishes seniority-based wage system

Honda Motor Co has abolished its seniority-based wage payment system and introduced a performance-based pay system for its 40,000 rank-and-file employees at the parent firm and nine subsidiaries, company officials said Saturday.

Since last October, the automaker has been paying monthly salaries based on six qualification grades allocated to employees and their job performances, the officials said.

Lower performance assessments can result in pay cuts, but actual cuts will take place only starting in fiscal 2007 because the company decided to have a transition period until the end of fiscal 2006, they added.

Most Japanese firms have a seniority-based wage system that automatically raises salaries every year regardless of employee performance.

Some companies have started paying employees holding managerial positions salaries based on performance, but it is still rare for a company as large as Honda to introduce the merit-based system for rank-and-file employees.

=> japantoday.com/e/?content=news&cat=3&id=247119

Tough times ahead for aged salarymen.

Seniority System Breaking Down Being Appointed as Executive in One's 50's May be Too Late

=> chugoku-np.co.jp/MAZDA/1/e980108.html
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