Japan Post introduces performance-based wage system

Japan Post and its labor union have agreed to introduce a performance-based wage and personnel affairs system for its 270,000 employees, starting April 2004, officials at the government-backed postal service provider said. The new system, designed to reflect employees’ performances and abilities on wages and bonuses, is to motivate workers and improve services for customers so as to prop up the loss-making mail delivery business, they said. Consequently, the system would produce an annual income difference equivalent to up to two months of wages for managers and a gap equal to about one month of wages for rank-and-file workers, the officials said. Top Japan Post managers will also be encouraged to demote employees whose performances fail to meet set standards for three years in a row, they said. “This is the first time that the wage and personnel affairs system of this type is to be applied to national government-level public servants,” one of the officials said. The system calls for allowing workers to apply to management for higher ranks and positions. Japan Post’s move is likely to impact deliberations in political circles on the feasibility of introducing a similar system at government ministries and agencies, they said. The new system is also likely to influence the course of discussions on the wisdom of a proposal to privatize Japan Post, they said. The union, however, has opposed another proposal by Japan Post to produce differences in the levels of bonuses in accordance with general profitability at each of its three key services areas – mail delivery, postal servings and postal insurance, they added. The top managers and the union agreed to continue to hold talks on the appropriateness of this proposal down the track, they added.

Relevant Directory Listings

Listing image


Doddle powers PUDO networks and intelligent returns management for some of the world’s most innovative carriers and posts. Our experience building our own successful PUDO network in the UK means we have unprecedented insight into the needs of consumers, carriers and retailers meaning we can […]

Find out more

Other Directory Listings




P&P Poll


What is your top business priority?

Thank you for voting
You have already voted on this poll!
Please select an option!

MER Magazine

The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a must-read for those who want the inside track on the industry.


News Archive

Pin It on Pinterest

Share This