Changing Employment and Wage Systems
     (1) Daiei Introduces its Unified Personnel System for Both Full-time 
       and Part-time Employees
    The major supermarket chain Daiei has decided to remove the differences 
  in the way it manages its full-time and part-time employees, and began 
  implementing a new integrated system in May.
    The new system affects all 11,000 full-time and 55,000 part-time 
  Daiei employees. Under the new system, Daiei employees will be bound 
  to one of three types of employment contracts based on their work hours 
  and their acceptance of workplace transfers. The three contracts are 
  as follows:
  * Type A, offered to employees who can work full-time and who would 
    agree to being transferred;
  * Type B, offered to employees who can work full-time but who would 
    refuse to be transferred; and
  * Type C, offered to employees who work part-time and who would refuse 
    to be transferred.
    Under the new system, even workers who were originally hired as 
  part-time employees under a Type C contract can switch to a Type B 
  contract and be promoted as high as store section chief. And if they 
  agree to be transferred, they can be switched to a Type A contract 
  (which is the same as what "full-time employees" signed before the 
  new system was introduced) and become eligible to be promoted to store 
  manager or even company executive, thus greatly opening up the freedom 
  of employee work choices and introducing greater promotional opportunities, 
  even to part-time employees.
    Employees will be hired by Daiei through ordinary job recruitment 
  programs as well as through recommendations. In addition to the above 
  three contracts, Daiei has set aside a separate system of one-year 
  employment contracts offered to professionals, sales experts, and 
  management experts who will be paid on a fixed annual salary basis.
   (2) Celestica to Introduce a Merit-Based Wage System in Japan
    Celestica Inc. of Canada,  (consignment service company in the 
  manufacture of electronic machine) which recently acquired an NEC 
  factory together with its employees, will introduce a merit-based 
  personnel and wage system at its two Japanese factories in fiscal 2003.
    In Japan, even companies that have merit-based systems for their 
  white-collar employees do not apply them to the blue-collar workers 
  working at their factories. Celestica seeks to change this. The new 
  personnel and wage system will affect all 900 employees at its 
  factories, including skilled workers at its production lines.
    Celestica is currently in the process of reviewing the system it 
  uses in its head office in Canada and is finalizing the details of 
  the new system. In principle, employee performance will be assessed 
  by their superiors, and this assessment, together with the company's 
  overall performance, will be used to determine an employee's wage. 
  Celestica hopes to introduce a system whereby wages will be paid above 
  a certain minimum according to employee performance.
    It is generally thought to be difficult to assess individual 
  contribution to production line work because of the strong element 
  of teamwork involved in such work. Celestica has adopted a "cellular" 
  work model in which individuals assemble a product from the parts 
  upwards instead of using assembly lines, making it possible, they 
  believe, to identify the different skill levels of its employees and 
  make meaningful assessments of individual performance.
                                                (Nikkei Shimbun, April)







