JAL's Former Presidents Are Requested to Pay Back Their Retirement Pays

from Yomiuri Online
19 December 2009

Japan Airlines, in the process of business rehabilitation under public control, are requesting a total of six former presidents to return a part of their rewards as they had received at their retirement.

The current management of the company, before starting formal process to slash corporate pension for retired employees, seemingly reached to a decision to clarify responsibility of past management decisions that consequently led to today's crisis. The company official acknowledged all of them agreed to return their rewards.

The six persons served as presidents of JAL as well as JAL International or JAL Japan, major subsidiary companies, and total amount of repayment may reach to millions of yen.

In the meantime, JAL decided to announce its revision plans of corporate pension scheme where retirees would receive average 30% less while current employees would receive 50% less than present level as they retire on December 18. The company will send letters to all of applicable retirees and employees at early next week to explain how much cut they will see in new plans and asking them to reply if they accept the plans by January 12.

JAL's preliminary survey showed 65% of retirees replied that they would accept the plans but the revision of corporate pension scheme calls for more than two thirds of all of relevant retirees and employees and the chance to adopt the new plans is not certain.

At briefing sessions held by JAL at various cities, there were many opinions from JAL retirees asking current president as well as its former management officers to take responsibility for past mismanagement of the company.