Slices of Japanese business, politics and life
“Turbulent” wouldn’t properly describe the recent flight path of national flag carrier Japan Airlines, in a spiralling game of chicken with its retirees and unions over a $3.7 billion pension shortfall.
President Haruka Nishimatsu, who needs a pension deal to get bridge loans and bailout money from the state, is asking for an average 40 percent cut from retirees and current employees.
“If we can’t, risks to our survival will increase, including the possibility of a court-led reorganisation,” he said on Monday to a gathering of unions and retirees.
The merits for the 17,000 current staff and some 9,000 retirees, who can block any pension cut if more than one-third object, are not compelling to everyone.