TEPCO Worker’s get’s hefty pay cuts in their salary
Tepco workers agreed to a management proposal to cut their pay as a sense of responsibility for the world’s worst nuclear disaster since Chernobyl. Annual remuneration for board members will be reduced by 50 percent since April 2011, while payment for managers will be cut by 25 percent and workers by 20 percent both since July 2011 and bonuses since June 2011. The company expects to save about 54 billion yen ($659 million) a year from the pay cuts.
The Washington Post reported, that compared to American and European chief executives, Tepco chief, “Shimizu earns a pittance. Tepco won’t give his salary, but total remuneration for the president and 20 other directors came to $8.9 million in fiscal 2009, the last period for which figures are available,” an average of $445,000.
Tokyo Electric Power is likely to face 2 trillion yen ($23.6 bln) in special losses in the current business year to March 2012 to compensate communities near its crippled Fukushima nuclear plant, according to JP Morgan.
Japan plans to put TEPCO under effective state control so it can meet its compensation payments to people affected by radiation leaking from its Fukushima I plant. Tokyo will set aside several trillion yen in public funds that TEPCO can “dip into if it runs short for payouts to people affected”.