Toyota to Focus Pay on Performance in Japan

Toyota Motor Corp (7203.T) will change the way it pays factory workers, focusing on their performance rather than their seniority, the Nikkei reported on Monday.

Toyota’s new arrangement, designed to attract young talent, will apply to about 40,000 employees, or about 60 percent of its workers, aged between 18 and 65, according to the Nikkei.

The automaker has unveiled the proposal to its labor union and is hopeful of rolling it out next January, the Nikkei said.
 
Employees will be evaluated twice a year, with wages adjusted every six months, the Nikkei reported.

Besides revamping its seniority-based system, the new arrangement will also reshuffle allowances for dependents to provide greater benefits to workers who are raising children, the financial daily reported.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza