• Home
• About/Contact
• Economic Reports
• Research
• Advertising

• Business
• Economics
• Reports
• Finance
• Marketing
• Politics
• Real Estate
• Services
• Retail
• Tech

Toyota, McDonalds to pay for overtime work: Will a trend develop?

Back in January, McDonald’s Japan was ordered by the Tokyo District Court to pay just over 7.5 million yen in overtime pay to a store manager. McDonald’s had argued that store managers were not entitled to overtime pay, as they were in managerial positions. Not surprisingly, the court rejected such a notion in its decision.

The case seems to have made McDonald’s worried about its PR more so than legal issues, as the firm announced earlier this week that it will begin paying overtime to its store managers. At the same time, Toyota has announced that it will begin paying for ‘voluntary’ overtime conducted during off-hours kaizen sessions.

Will such moves give these firms - especially McDonald’s - a leg up on the competition in terms of attractiveness as employers? Will we see a bump in average wages? Will other companies begin to announce that they will pay overtime in order to improve their PR messages? Imagine: “Work here! We’ll even pay you for it!”

Although it remains to be seen if announcing that a firm will pay for overtime work will catch on as a trend, it seems safe to bet that we haven’t heard the last of this.

Comments

Copyright © 2006-2008 Japan Economy News

Disclaimer