What methods do Japanese companies use to fire employees

  This new crown pneumonia epidemic has also presented a situation of “a few happy and some worries” for Japanese companies.
1

  Among the “Huanxijia”, the most representative ones are as follows:
  First, the SoftBank Group, led by Japan’s richest man Sun Zhengyi, has a net profit of 4 trillion yen in 2020, setting the highest profit record of all Japanese companies—— 4.9 trillion yen (approximately 288.4 billion yuan), surpassing Microsoft, and second only to Apple and Saudi Aramco.
  Second, Toyota Motor Corporation, led by Akio Toyoda, achieved a net profit of 2.2452 trillion yen (approximately 132.1 billion yuan) in 2020, an increase of 10% over the previous year and the third highest since the establishment of Toyota Motor Corporation. Record of profits.
  Third, Sony’s net profit in 2020 exceeded 1 trillion yen for the first time, reaching 1.1717 trillion yen (approximately 69 billion yuan).
  Fourth, Nintendo’s net profit for 2020 has soared by 85.7% over 2019, reaching 480.3 billion yen (approximately 28.5 billion yuan).
  Among the “worries”, the most representative companies are as follows:
  First, Japan Airlines and All Nippon Airways will lose 287 billion yen (approximately 16.9 billion yuan) and 404.6 billion yen (approximately) in 2020. 23.8 billion yuan).
  Second, Nissan Motor Corporation and Mitsubishi Motors Corporation will lose 671.2 billion yen (approximately 39.7 billion yuan) and 313.2 billion yen (approximately 18.5 billion yuan) in 2020.
  Third, Matsushita Electric Co., its net profit for 2020 will drop by 26.9% to only 165 billion yen (approximately 9.7 billion yuan).
  Compared with Sony’s decision to award every employee a seven-month summer bonus, Japanese companies that have lost money have begun to consider layoffs, including Matsushita Electric.
  Matsushita Electric is a long-established Japanese company with a history of 103 years. Its founder is Japan’s “God of Management” Mr. Konosuke Matsushita. However, Panasonic has begun to decline in recent years. On the one hand, the old Mr. Matsushita has passed away; on the other hand, as the number one home appliance company in Japan, it has not found a breakthrough new industry pillar in its rapid transformation and upgrading. Although the sales of home appliances will be good due to the increase in the number of people working at home in 2020, the sales of electronic components and electronic systems for passenger planes and other electronic components have fallen sharply. Sales fell by 10.6% compared to 2019. After 25 years, it has fallen below 7 trillion. The yen mark.
  How to do? Matsushita Electric Corporation decided to lay off employees.
  Panasonic did not announce the specific number of layoffs this time. In the wave of layoffs in 2002, Panasonic laid off 10,000 people.
2

  Let’s take a look at how large Japanese companies have laid off employees.
  Japanese large companies must pay attention to the following two points when layoffs:
  First, you must never say “you won’t have to go to work tomorrow.” If this is the case, it would violate Japan’s labor law. Because of the Japanese labor law, dismissal of employees must be notified one month in advance. At the same time, if an employee wants to resign, he must also apply to the company one month in advance.
  Second, we cannot directly lay off employees on a large scale, because this will cause a struggle between trade unions and enterprises. Large Japanese companies have strong trade union organizations. Trade unions are independent of the corporate management team. Their main purpose is to protect employees’ rights and interests such as employment and welfare. Therefore, even if companies want to lay off employees, they must obtain the understanding and support of the trade union.
  If employees cannot be fired on a large scale, what means are used to implement the layoff plan? Many Japanese companies have adopted a flexible approach called the “Early Retirement Reward System.”
  This system locks down the targets and age groups of layoffs, and formulates a preferential reward system to allow these employees to leave the company in dignity.
  In the “early retirement incentive system” of general Japanese companies, retirement pay is an incentive for 24 to 36 months of salary. For example, the monthly salary is 500,000 yen (about 30,000 yuan). If you apply for early retirement, you can receive 12 to 18 million yen (about 700,000 to 1.06 million yuan) in one lump sum.
  So, how did Matsushita Electric Corporation deal with it this time?
  Panasonic will focus on layoffs this time for employees in the 50-55 age group. The average annual income of employees in this age group is 8.45 million yen (about 500,000 yuan). The average annual income of managers above section chiefs is more than 10 million yen (about 580,000 yuan). This income standard ranks seventh in Japan’s electromechanical industry.

  Panasonic’s original “early retirement reward system” stipulated that the maximum pension should not exceed 40 million yen (about 2.35 million yuan). However, because the targets of the layoffs this time are basically old employees and cadres of the company, it was decided to break this rule and allow overpayments.
  According to the information disclosed by Matsushita Electric Company, taking management cadres as an example, 50-year-olds will be rewarded with 50 months’ salary, 51-year-olds will be rewarded with 49 months’ wages, 52-53-year-olds will be rewarded with 48 months’ wages, and 54-55-year-olds will be rewarded with 47 months’ wages. This is much higher than the incentive pension of Japanese companies.
  Of course, after these Japanese employees receive this high pension, they can also find jobs in other companies. After they are in their 60s, they can still receive pensions in accordance with regulations. Therefore, it is not the young people who are rich in Japanese society, but the white-haired class.
  Panasonic’s layoff plan will make Chinese and Korean companies excited, because these highly professional engineers will soon become the technical talents that Chinese and Korean companies desire, and their salaries will generally be higher than when they were at Panasonic. high.
  This is also the reason why Japanese society believes in personal skills. As long as a person has a craft and a technique, he is not afraid to go wherever he goes.

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