Nissan Giving Out Record Worker Bonuses

TOKYO March 6, 2003; AP is reporteing that Nissan Motor Co. is doling out a record bonus to its Japanese workers this year, and two other leading Japanese automakers are in talks with unions demanding similar hefty bonuses reflecting roaring profits.

Nissan, Japan's second-largest automaker, has agreed to its union's demand for a bonus of 5.8 times a worker's monthly salary, or an average 2.018 million yen ($17,200) in annual bonus pay, company spokesman Kiyoshi Ariga said Thursday.

Nissan workers also won a pay hike of 1,000 yen ($8.50) monthly, he said.

The compensation is a result of Nissan's solid financial performance. In November, the company reported record results for the fifth straight fiscal half-year, earning 287.7 billion yen ($2.4 billion).

Japanese workers at large companies receive bonuses twice a year, in summer and winter. The bonus can account for about half of a worker's paycheck. The bonuses are calculated by multiplying a number to a worker's monthly pay. The bonus calculations typically reflect profits, business prospects and general economic trends.

Although the nation's long slowdown has forced many companies to stop paying bonuses, Japan's top three automakers are reporting booming profits despite lagging car sales here. That's largely because of strong demand for their models in the United States.

Workers at Honda Motor Co., Japan's third-largest automaker, did not demand a pay raise this year but are asking for 6.5 times their monthly pay for their bonus, the highest ever at Honda, company spokesman Yuji Hatano said.

The workers believe that Honda's performance reflects their efforts, Hatano said. A decision is expected next week. Honda workers won 6.3 times their salaries in a record high bonus last year.

Japan's No. 1 automaker, Toyota Motor Corp., refused to comment on local media reports it has agreed to pay bonuses worth five months' pay and an additional 550,000 yen ($4,700).

Toyota also plans to accept a demand for a one-time payment of 60,000 yen ($500) to each worker, Kyodo News Agency reported, citing sources close to the negotiations. Toyota said an announcement on the labor talks is set for next Wednesday.