Japanese Union Tries 'Pay For Performance'

The company union at Fujitsu Ltd. has become the first large union in Japan to scrap its seniority-based system of pay in favor of a performance-based plan based on individual goals. In addition, raises and promotions for the 124 affected workers will be based on performance, not seniority; and pay discrepancies between administrative and technical jobs will be eliminated. The union hopes that the performance-based approach will increase membership and attract younger workers.