Toshiba workers are asked to quit at 55 if they want to continue to work till 65

Under the revised law retirees will not be eligible for receiving pension benefits before they are 65 instead of 60, and many corporations have raised the retirement age to 65 from 60. But a new problem has arisen for workers. Workers can only work until retirement age at 65 under lowered wages.

Toshiba Corporation, one of Japan's electronics giants, introduced a new "employment extension" system in April 2001 which will force workers to choose between two retirement ages, 60 and 65.

Those who choose 65 have to technically retire at age 55 and will be re-employed through the Toshiba-related agency to work for less salary. After 55, their salaries will be reduced to 85 percent of what they received until their technical retirement. After 60, they will become contract workers and their salaries will be further reduced to 60 percent. Their contracts will be subject to annual renewal without job security.

Many Toshiba workers are worried about the new system and their future.

If workers choose retirement at 60, they will get about seven million yen less than what they could have got during the five years from 55 to 60 as regular Toshiba employees. The system is thus very profitable to the company.

A Toshiba labor union survey of its 7,000 members has found that 72.8 percent want to continue to work even after they are 60, mainly because they can't live on their retirement allowance, pension, and savings. Workers want to get their wages maintained until 60 and be hired by affiliate companies, if necessary, after 61. (end)