Uniqlo to switch up to 5,000 part-time workers to full-time status

March 6, 2007
By Ken Worsley

In a move that bucks recent employment trends in Japan, where the number of non-permanent employees rose by 3.2 million over the five years to 2005, Uniqlo (Fast Retailing) has decided to switch the employment status of up to 5,000 employees from part-time to full-time over the next two years.

Uniqlo, which currently has 2,100 full-time employees, will absorb about 1 billion yen extra in personnel fees once the move is finalized. The new full-time workers will be eligible for semi-annual bonuses and thus will see effective pay raises in the neighborhood of 10%.

A spokesman for Fast Retailing said, “We would like to bolster customer satisfaction and our corporate performance by integrating experienced people into our regular workforce.”

Uniqlo reported that February 2007 existing-store sales increased by 3.3% year on year while sales at direct-run stores increased by 8.7%. This observer, however, wonders how this move might affect Uniqlo in the future, should cashflow become an issue. Uniqlo made a name for itself by being one of the bigger success stories during the post-bubble decade. Will consumers continue to flock to its shops even after they no longer have a need for inexpensive clothes? Or has Uniqlo established itself a solid enough niche? Amid falling retail sales in Japan and an aging society, Uniqlo has been venturing into new markets, with 703 shops in Japan, 8 in the UK, 7 in China, 9 in Korea, 1 in Hong Kong, and 5 in the U.S. - and this observer can vouch that its shop in the Chelsea district of New York City was quite crowded during the week after Christmas.

Filed Under Labor and Wages, Retail