Kobe Steel to Join 2 Rivals in Coronavirus Furlough

Economy

Tokyo, April 22 (Jiji Press)--Kobe Steel Ltd. <5406> plans to put employees on temporary leave in response to falling demand amid the novel coronavirus pandemic, following in the footsteps of the two other major Japanese steelmakers, it was learned Wednesday.

Kobe Steel will propose the leave scheme to its labor union by the end of this month, with aim of setting details of the measure, informed sources said.

The measure is expected to initially cover workers at facilities including its mainstay steelworks in the city of Kakogawa, Hyogo Prefecture, western Japan, according to the sources.

A total of about 10,000 Kobe Steel employees would be subject to the temporary leave system if it is applied across the company, the sources said.

Of its two rivals, Nippon Steel Corp. <5401> launched this month a temporary leave program targeting about 30,000 employees at its head office and domestic steelworks.

[Copyright The Jiji Press, Ltd.]

Jiji Press