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Keidanren: Winter bonuses to fall for the first time since 2002

October 24, 2008
By Ken Worsley


Earlier today, Keidanren (the Japan Business Federation) released a survey of major corporations showing that winter bonuses are set to decline for the first time in since 2002. The survey covered 109 companies in 21 industries that employ over 500 people and are listed on the first section of the Tokyo Stock Exchange.

The decline, however, is slight: Average winter bonuses for salaried employees are projected to be at 904,885 yen, down 0.03% from last year. In 2002, winter bonuses dropped 2.42%. The expected average bonuses at manufacturers moved up 0.3% to 919,461 yen, but fell 2.4% to 822,473 yen at non-manufacturing firms.

The largest percentage rises were seen in machinery and shipbuilding, at 5.64%, while the largest fall was in the steel industry, at 5.06%.

Filed Under Business, Labor and Wages 

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Comments

5 Responses to “Keidanren: Winter bonuses to fall for the first time since 2002”

  1. Steven Towns on October 25th, 2008 8:46 am

    From your headline I was expecting a far bigger drop. I’d say that a largely in-line bonus over last year is welcomed and appreciated considering the tumble in equity market values. Looking at the U.S., one of the key concerns is of employment and just how high unemployment will rise. Jobs are being slashed left and right and not just in the financial sector. That means even fewer people to buy consumer electronics, etc.

  2. Vicky Willet on October 25th, 2008 4:12 pm

    I hope so Steven. They should feel lucky to be getting any bonus at all. Some of us have to put up with salary drops.

  3. WG on October 25th, 2008 10:09 pm

    Same as Steven, I thought there was going to be a much larger drop. I doubt what’s published in this report is even statistically significant. It seems like a pretty small survey covering a limited number of firms.

  4. Nikkei: Winter bonuses to fall 2.9% Japan Economy News & Blog - Business, Economy, Marketing and Economic Reports on November 8th, 2008 10:15 pm

    […] on October 24, we reported on a Keidanren survey that predicted winter bonuses in Japan would fall for the first time since 2002, though the decline was only registered at 0.03%. Today, the Nikkei published the results of […]

  5. Franco A.Grassini on November 24th, 2008 12:59 am

    Do the bonuses depend on company profit? And if the answer is positive who decides: the company or there is a negotiation with trade unions?
    I would appreciate if somebody could explain it to me, since we are considering to introduce a bonus in one company

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