Game maker Sega will cut extra pay for overtime

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Game maker Sega will cut extra pay for overtime

Game software maker Sega is planning to cut extra pay for overtime from the present 150 percent to 135 percent, spurring its union to stage protests.

The Labor Standards Act will be revised in April to require employers to pay extra for overtime: 125 percent of base pay for overtime of less than 60 hours a month, 135 percent on holidays, and 150 percent for overtime of more than 60 hours.

Sega currently pays its workers extra wages for overtime at 150 percent across the board. However, the company is going to use the revised law as an excuse to lower the rates for extra pay.

The Sega Group Branch of the All-Japan Metal and Information Machinery Workers’ Union (JMIU) in collective bargaining with the company stated that the revised law is to prevent long working hours, demanding that Sega stop taking cost-cutting measures. Sega, however, kept saying that it is not violating any law concerned and refused to maintain the present extra pay rate.

Sega does nothing to eliminate overtime or increase manpower, a worker complained.

Sega’s parent company Sega Sammy Holdings Inc. has amassed about 396.8 billion yen in internal reserves. It seems to have enough strength to increase the number of workers and maintain the present extra pay rate.

The JMIU Sega Group Branch continues to stage a protest in front of the Sega head office in Tokyo, calling for the withdrawal of the plan to cut the extra pay.

- Akahata, March 27, 2010