Japanese electronics firm Sony Corp said on Thursday (19th March) that, it would freeze workers' salaries this year as the company tried to recover from a record loss. Its rival companies like Toshiba, NEC and Hitachi may follow the suit in the face of a global sales slump. Unemployment level is rising in Japan as a slide in exports has forced firms to curb production with the tech sector among the worst hit.

 

Sony spokeswoman Mami Imada said, ahead of the pay round for the financial year starting next month that, this time they decided to keep the workers' salaries unchanged. Imada also said that, bonuses of the workers would be cut to four months' pay from six months. Many Japanese companies automatically raise the salaries of their workers each year based on the seniority status. But Unlike these companies, Sony's pay hikes are set annually for each worker based on their role and performance.

 

It is expected that, other tech companies may follow Sony's suit. Meanwhile, three other Japanese tech companies Toshiba Corp, NEC Corp and Hitachi Ltd said on Wednesday (18th March) that, they were considering similar moves. The global financial crisis along with a strong yen that hit 13-year highs in January is pushing Sony to a projected operating loss of $2.9 billion for the current financial year.