Recently the NHK News on-line reported the following:
The major electrical equipment manufacturer "Sharp" which had its final account ending March this year expected to go into the biggest red ever, the management and labor union had agreed that employee's wage would be reduce by 2% across the board for eight months starting from next month. "Sharp" was expected to face the greatest ever 380 billion yen net loss in the accounting for the period ending March this year; based on the aggravating performance, since the reply day of the spring labor offensive, negotiations about wages between employer and employee had continued. As a result, in the labor-management negotiation that was conducted on the 18th, the management and the union had agreed upon an across the board 2% reduction of union employee's wage for eight months up to December starting from next month this year.
On the other hand, about the management posts, it had a uniform wage reduction of 5%, a decision based on judging the financial condition during the period; and regarding the officers, there would be zero bonus in addition to the current fiscal year's reduction in the amount of monthly remuneration already performed, and remuneration would be reduced from 20 percent to 40 percent based on the yearly amount.
In face of the economic downturn, cutting salary would be the only option for the company.