Nissan freezes shopfloor pay and gives bosses 15% cut

Mar 26 2009 by Peter McCusker, The Journal

NISSAN has told staff there will be no pay rises this year as it emerged pay deals in manufacturing are the lowest for 22 years.

Nissan which is shedding 1,200 of its 5,000 workers on Wearside, says the action is part of its global response to the big drop in demand for new cars.

A spokesman said: “Due to the effects of the ongoing financial crisis, Nissan is continuing to implement prudent measures on a global basis to ensure the company is in a strong position once market conditions return to normal. Nissan has made a series of decisions affecting employees in the Americas in light of the current economic pressures and looking forward.

“Consistent with the actions of well managed companies, these decisions are designed to preserve jobs and long-term income stability. These actions may be reconsidered as economic conditions improve.

“In line with the company’s global direction, Nissan has announced its intention to freeze the pay of staff for all European-based employees in 2009. Furthermore, the overall compensation package in 2009 for managers and above in Europe will be reduced by an average of 15%. This proposal is being discussed on a local level with employee representatives and management.

“Throughout the crisis period it is essential that decisive action is taken to protect the company. At the same time, Nissan will continue seeking to minimise the impact any measures have on its staff or their families.”