Japan Post Office Staff to Be Compensated for Lost Pay

Economy Politics

Tokyo, Aug. 20 (Jiji Press)--Japan Post Co. and Japan Post Insurance Co. <7181> plan to compensate post office sales staff for lost salaries, in the wake of an inappropriate insurance sales scandal involving the companies, informed sources said Tuesday.

These workers are facing a loss of as much as tens of thousands of yen in monthly pay as the units of Japan Post Holdings Co. <6178> are suspending active sales of insurance products at post offices due to the scandal, the sources said.

The Japan Post group's labor union will hold a national convention in the southwestern city of Kumamoto Wednesday and Thursday to discuss ways to address the loss of salaries.

In April 2015, the basic pay of post office sales workers was reduced by over 10 pct in exchange for an increase in merit-based allowances. Currently, such allowances make up one-fourth of annual pay.

Subject to the compensation will be some 15,000 Japan Post workers and about 1,000 Japan Post Insurance employees.

[Copyright The Jiji Press, Ltd.]

Jiji Press