Nissan to Offset Five Years of Pay Cuts for Workers Transferred to Kyushu Plant

TOKYO, Dec 04 (News On Japan) - Nissan is considering a plan to compensate employees who transfer from its Oppama plant in Kanagawa to the company’s Kyushu factory by paying in advance the equivalent of five years’ worth of reduced monthly wages, according to reporting obtained by JNN.

The measure comes as the automaker, facing prolonged business difficulties, plans to end vehicle production at the Oppama plant in March 2028 as part of a broader restructuring effort.

Nissan has proposed that Oppama employees relocate to Nissan Motor Kyushu. People familiar with the matter say monthly pay and bonuses in Kyushu would be set at around 90% of the compensation currently provided at Oppama.

To bridge this gap, the company has presented a proposal to the labor union that would grant transferees a one-time lump-sum payment, described as a “transfer adjustment allowance,” equivalent to five years of lost monthly income. Nissan also intends to compensate for the reduction in bonuses and to address retirement benefit differences as part of the package.

In addition, the company plans to provide allowances for employees who must take on solo assignments as a result of the transfer. The aim is to prevent the loss of experienced workers with specialized production skills at a time when maintaining technical capabilities is critical for Nissan’s turnaround.

The proposal was delivered to the labor union last week, and Nissan’s union is currently gathering feedback from employees.

Source: TBS

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