Financial Times FT.com

Sony takes historic decision to freeze pay

By Robin Harding in Tokyo

Published: March 20 2009 02:00 | Last updated: March 20 2009 02:00

Sony, the Japanese consumer electronics group, is to freeze the pay of nonmanagerial staff in Japan for the first time, as part of its drive to control costs and to reduce operating losses.

The company may be followed by manufacturing rivals such as Toshiba and Hitachi in a decision that undermines the basis of Japan's postwar wage system, which rewards loyalty by increasing pay in line with seniority.

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