Japan Press Weekly

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2011 December 14 - 20 [LABOR]

Increasing job cuts at Sony

The Sony Group is closing or reducing its domestic business facilities on a large scale. Sony Corporation Sendai Technology Center, located in Sendai City in Miyagi Prefecture, is using the excuse of dealing with the aftermath of the 3.11 disaster to dismiss fixed-term workers and transfer full-time workers to outside Miyagi. The group is also reorganizing its logistics operations.

Sony Supply Chain Solutions Inc. (SSCS) is a 100% Sony subsidiary and is planning to transfer some operations and employees to a different company established jointly with a staffing agency.

The Sony subsidiary in October gave its workers its reason for the business transfer: Sony Corporation is downsizing domestic business establishments and promoting overseas production; and it is necessary to lower the fixed cost because the demand for TVs slowed down after the transition to digital terrestrial transmission was completed.

Out of 460 SSCS employees, 30 are targeted to be moved to another company. Individual interviews are now taking place to persuade them to accept the transfer order.

Since the new company has already cut the wages of ex-SSCS workers by 40%, the targeted workers and many SSCS workers are worried about a worsening of working conditions and are opposing the transfer plan.

A person in charge of SSCS personnel management said casually, “Some workers could regain their original positions after transfer.” However, a worker who is being encouraged to go to another company said, “The new company told me I can’t come back to SSCS. I think I will be forced to abandon my SSCS status or retire from my job at some stage.”

Another targeted worker in his 40s said, “Sony board members earn huge salaries and Sony itself has amassed more than 3 trillion yen in internal reserves. They should use that money to maintain jobs.”