Some firms following McDonald’s Japan in paying overtime to shop managers

June 9, 2008
By Ken Worsley

Back on May 24, we wondered if the Tokyo District Court’s decision to order McDonald’s to pay out just over 7.5 million yen in back overtime pay to its shop managers would lead to a trend throughout the services industry. It seems as though one is evolving. A couple of weeks ago, the Nikkei reported that convenience store giant Seven Eleven has begun paying overtime to 500 managers at stores that it operates directly, while menswear outlets Yofuku Aoyama and Aoki are both paying overtime to shop managers as of May 2008.

According to the Nikkei, however, restaurant managers in general will still have it tough. 68% of firms polled said they intend to continue classifying their shop managers as company management, which means they will be exempt from having to pay them overtime.

What effect might all this have on profits? A year’s worth of overtime for shop managers at Yofuku Aoyama is estimated to set the firm back 600 million yen.

Filed Under Business, Labor and Wages