Sharp Corporation to Reduce Salaries by 10 PercentSharp Corporation of Japan announced across-the-board salary for both managerial and union workers. Under the new measures, there will be a 10 percent salary cut from October 2012 to September 2013 that will continue with a 5 percent cut from October 2013 to March 2014 (a 5 percent salary cut was implemented from April to September 2012).
Sharp also said December 2013 bonuses will be half that compared to the June 2012 bonuses, which in turn were reduced by approximately 30 percent compared to the previous year. (The same measure took place with the December 2012 and the June 2013 bonuses.)
Several allowances and welfare programs for union-member employees are currently applied to managerial staff as well. These include the termination and reduction of allowances and welfare benefits. These measures will be implemented once discussions with the labor union are settled.
Other measures include cutting back premium rates of overtime allowances to the minimum legal standards, the reduction of allowances for business trips, and the termination of welfare benefits, which will be implemented from October 2013 to March 2014.
Sharp estimates that these measures will reduce fixed costs by approximately 10 billion yen for the year ending March 2014.
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