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Nissan Plans To Turn 700 Japan-based Contract Workers To Full-time Employees

Nissan Plans To Turn 700 Japan-based Contract Workers To Full-time Employees

 

Nissan Motor Co. has announced plans to promote its contract workers in Japan to full-time roles as part of the automaker’s drive to reduce fixed costs and allowing it to invest it in its talent pool. Around 700 contract employees working part-time at Nissan’s plants, R&D centres and head office in Japan's Yokohama will be made full-time employees on April 1, a spokeswoman said, confirming an earlier Bloomberg News report. the automaker is also mulling over abolishing the system of hiring contract workers.

 

The promotions will raise the expenses but shows Nissan’s confidence in its plan to make progress to cut 300 billion yen ($2.8 billion) in annual fixed costs. The company wants to retain skilled personnel by offering full-time roles and the cost cuts made may help the company push to sign on the employees.

 

The company is banking on better, efficient and more effective business operations due to this move as it would afford people with extra motivation.

 

In May last year, Nissan announced to reduce annual fixed costs via measures like closing production lines and reducing capacity by 20 percent after the automaker posted losses to the tune of 671 billion yen for the fiscal year ended March. The losses were its biggest in the last 3 decades.

 

Nissan is also predicting further losses for the present fiscal year ending March which makes one question the company's move to turn the employees full time as it more difficult to dismiss employees who are fulltime workers as compared to the contract employees who can be asked to leave once their contracts end.

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