Japanese Union Tries 'Pay For Performance'

Jan. 13, 2005
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 ...

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.

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