Major electronics companies are offering wage cuts

In Japan, major electronics companies are not only rejecting the labor demand for higher wages in the 2002 Spring Struggle, but are aggressively counter-proposing wage cuts in various forms, on the pretext that their year-end (March) financial report will be in the red.

Mitsubishi Electric Corporation has offered an end to the regular base wage increase of 3,000 yen per month (about 23 dollars) and lower rates of payment for overtime work. In addition to the two changes, which translates to a monthly loss of about 10,000 yen (about 85 dollars) per employee, worsening working conditions are part of Mitsubishi Electric's 24-point offer. NEC Corporation has made a similar offer.

Wage cuts as the main point has been made also by Yasukawa Electric Mfg. (10 percent) and Sumitomo Heavy Industries (15 percent). Sanyo Electric is planning a 20 percent wage cut on the pretext that a work-sharing system is being introduced.

Commenting on these moves, Akahata on March 12 said that it should be noted that the red figures alluded to are the result of rigging by the management. It said that these companies, which reported good business revenues last year, have ended up in the red this March because they entered into their books various costs for corporate restructuring. These companies are trying to dismiss workers, and lessen in advance the financial burden for the dismissals so as to achieve a rapid V-shape business recovery next term.

The six major electronics companies combined have spent 1.68 trillion yen (about 13 billion dollars) for corporate restructuring and have 12.83 trillion yen (about 100 billion dollars) in internal reserves.

On the explanation that the companies' existence is at stake, these major corporations are trying to impose on workers the wage cuts they offered. The above figures, however, show clearly that their true aim is to set up a corporate structure in which high profits are ensured even during times of economic recession. (end)