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Mitsubishi Motors eyes early retirement for workers 45 or older

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To be clear, early retirement means leaving that company with a lump sum payout then you are on your own. It does not mean permanent retirement from the workforce.

0 ( +0 / -0 )

Yes, they retire at 45 or above and are told to they have to wait until they're 60 to begin collecting money. Then, when they get close to 60, the company bows and regrets that they will now have to wait until they are 65. But they promise to pay at 65.

Then, they are told they will have to wait until they are 70 because of an unfavorable business climate. But the company really will pay them this time.

Then, they are told the age will be 75. They promise. Really

This is how it works. The longer they wait, the more people will die off.

Hey, it's just Capitalism...

0 ( +0 / -0 )

Younger workers may have a better chance of finding a new job. The Company should transfer some of workers to differences department or retrain for another job.

What 45 + workers will do after Company force them into early retirement?

It's cruel and unwise from the Company. 45 + workers have plenty of experienced in the workplace and it will be wasted their experience and expertise. Government needs to intervene the Mitsubishi Motor's decision.

I don't think it's the right decision. It's also age discrimination against middle age and older workers. New car sale has dropped worldwide.

New car sale has dropped and used car sale is up in Australia. No doubt about some of Car Company's workers will lose jobs.

0 ( +0 / -0 )

Mitsubishi has always been a third-rate automaker, has had recall after recall since the early 80's, produce trucks with bad axels and wheels that shear off and kill children, and their vehicles don't sell well even in good times.

They should offer the whole company early retirement, not just to those over 45. This is just another gaff and mistake by Mitsubishi management. I, for one, won't cry if they go under if they keep doing their best to become a third-rate company.

0 ( +1 / -1 )

Sadly, thanks to the CCP, employment as we knew it is pretty much over, if you have a job - you're lucky for now.... I wouldn't be surprised if at some point the CCP steps in with offers to support big failing Companies in various Countries - only to pull those offers if there's any dissent towards things happening in China (or elsewhere - as it spreads it's tentacles).

-2 ( +0 / -2 )

I don't mind taking early retirement, so long as they pay me an adequate monthly retirement.

However "retirement" could be used to mean simply being "let go" (aka Fired!), or Euthanasia :-o !!

Mitsubishi was also one of the Ghosn legacies - https://en.wikipedia.org/wiki/Carlos_Ghosn

How the pack of cards is falling over, ultimately at what cost ?

-1 ( +1 / -2 )

They can forget about their market.

0 ( +0 / -0 )

They will force all the talented engineers etc to chinese companies etc

Same thing that's been happening since the early 2000s and has caused the hollowing of all Japanese industries to become a ghost of their former selves

I will add South Korea, Vietnam and India as well. They all are building their international auto brands.

In the case of China, they are already capable of producing any type of Japanese automobiles at higher quality, while they really lack the European/American technologies like Tesla or Mercedes. The Chinese won't probably need any Japanese talent, much.

Coming to a workplace near you soon. And your chances of ever finding another job at 45+ with anything like the pay and benefits you once received are slim to none. Meanwhile, bills, kids' tuition fees and mortgages will still have to be paid somehow...

The age of lifetime employment is long over. Thanks to Junichiro Koizumi and Shinzo Abe!

8 ( +9 / -1 )

Does anyone buy Pajeros any more? The newish Mitsubishi SUV I see is the Outlander, which also comes in PHEV form. This matters because in some countries, you can get massive tax benefits or avoid congestion charges if your car is at least partially electric.

My impression is that Japanese like oversized luxury hatchback ("crossover") type SUVs. The Toyota Harrier, Mazda CX-5, BMW X3, etc. They are not bothered about big boxy ones with genuine offroad features like a high ride height and a locking differential. Japanese campers/skiers/surfers etc. now dream of HiAce vans, not SUVs. For the US market, regular JDM SUVs are like toy cars compared to American ones.

0 ( +0 / -0 )

In Japan it is common for people to earn an additional 10,000 yen per month per year of service usually starting from around 25 or so I am told. If that is the case then it kind of makes sense to get rid of the older generation 45 and up who are earning higher rates than they deserve and restructure the payments to meet the actual work being done. I am sure it is not a mandatory retirement but they will be able to cash in their retirement package early rather than wait till 65. Other companies have done this successfully and department heads will form companies with retirement funds and then contract that work to the former company

-5 ( +0 / -5 )

They will force all the talented engineers etc to chinese companies etc

Same thing that's been happening since the early 2000s and has caused the hollowing of all Japanese industries to become a ghost of their former selves

The only things of superior quality made in Japan now are just a few niche products.

But they have themselves entirely to blame for this...I saw it first hand

9 ( +9 / -0 )

ZorotoToday 12:28 pm JST "What was the Japanese term they used?"

A term that is often used is RISUTORA (restructuring)...

0 ( +0 / -0 )

They will probably get 3 years base salary to quit. I assume their wives will be against it.

2 ( +2 / -0 )

Is this a voluntary early retirement or involuntary (i.e. layoff)? What was the Japanese term they used?

And how can targeting an age group can even be legal in 2020? It's like saying, we are going to lay off all non-Japanese.

2 ( +2 / -0 )

Coming to a workplace near you soon. And your chances of ever finding another job at 45+ with anything like the pay and benefits you once received are slim to none. Meanwhile, bills, kids' tuition fees and mortgages will still have to be paid somehow...

3 ( +3 / -0 )

Always take the first contract buyout offer - the second is never as good. When colleagues rush to accept, the terms and conditions worsen.

2 ( +2 / -0 )

On the other hand, the Japanese carmaker has already decided to stop producing the sport utility vehicle Pajero and also plans to terminate production of i-MiEV compact electric vehicles, which became the world's first mass-produced EVs in 2009.

Axing the pajero just goes to show that those running the company are completely clueless and don't deserve to be running a company not to talk of a company the size of MMC. The pajero was a strong challenger to the toyota landcruiser and Hyundai and Kia will happily fill the void.

4 ( +4 / -0 )

Unfortunately this just sounds like a press release, and answers none of the obvious questions.

How does this differ from redundancy? Are they getting a redundancy payment? If its "early retirement", is Mitsubishi going to start paying them the company pension? Is this company pension in lieu of a redundancy payment? Would these workers have qualified for taishokukin (golden handshake- typically 20 million yen) at 60 ? etc. etc.

"Early retirement" is voluntary and usually a good, redundancy usually isn't either. They won't get anything out of the state pension until 60 with penalties or 65 without.

6 ( +6 / -0 )

Wonder if foreign intern visas is a factor?

-1 ( +1 / -2 )

Structural unemployment is bound to happen given this year.

2 ( +2 / -0 )

If that was a real retirement, I would jump all over that! Imagine getting pension from 45 years of age!

-3 ( +3 / -6 )

@runner3

If you can retire at 45 great. Take your pension and get another part time job, or relax and take up a hobby, paint, learn to play an instrument etc.

I don't think they will have an early annuitized pension. I believe they will simply let them go and offer them some type of severance. They are using kinder words than what it really is. They should say, Mitsubishi plans to lay off workers aged 45 and over.

12 ( +12 / -0 )

I have liked Mitsubishi cars by and large for a long time and love their counterbalanced fours. No high rpm thrash like most four bangers, closer to a straight six in terms of refinement. The epic Lancer Evo's were one of the few Japanese cars who's seat and steering wheel position were just right. Most are a touch too cramped for me. Even my wife's big Avalon tuna boat is cramped behind the wheel but not Mitsubishi. Sad to see them on the ropes today. All that are offered in the US now are cute utes and the tiny little Mirage which are probably replacing worn out Geo Metros among the frugal long distance commuter crowd (there are people in the LA basin commuting 90-100 miles each way every day - ugh).

3 ( +3 / -0 )

If you can retire at 45 great. Take your pension and get another part time job, or relax and take up a hobby, paint, learn to play an instrument etc.

-4 ( +2 / -6 )

The accounting and stockholders looking at profits vs the people who got them there. IT is always labor that pays the costs and ends up losing while the corporation and stockholders survive but only for a shortfall. This outdated idea never has worked for anyone either corporation or the people. It's just another band aid. Someone posted about Ghosn's idea, in part it is correct. The corporation did not invest properly in R/D otherwise new innovation and products would be in much demand. It takes years to create, design, test and finally produce but without innovation and creation any corporation becomes stagnant overtime and starts to die such as the case today.

2 ( +2 / -0 )

45 years old being targeted for early retirement? And I thought age discrimination in general was already bad. The world war against older people continues.

Mitsubishi has nothing for them to do, bad move but good move for the survival of the company as all those jobs can be automated now.

-3 ( +0 / -3 )

I think it would be safe to say that companies that have the technological benefit will be pursuing the same course in the months to come. The pandemic has taught the corporations a new business model that isn't overly reliant on human labor and fixed cost. The ensuing social problem will be that most of the people who are laid off or choose early retirement won't be able to collect their national pension until 65 so that means finding a new job at 45 in an already depleted labor market. The so-called third arrow of Abenomics or now Suganomics or whatever, was structural change which is sorely needed but I doubt if the LDP have the vision or the gumption to carry this out. BTW, the Financial Times has given abenomics a D grade for labor reform.

2 ( +3 / -1 )

500 to 600 out of 14,000 is not màny.A very reluctant cut

-1 ( +1 / -2 )

Only a strong ceo can save the entire Renault alliance, not the 2 current puppets at Renault and Nissan. Mitsubishi had the best ceo but he recently passed away. And Mitsubishi was always treated as the ugly duck by the other 2, while they make the best cars of the 3 and offered a way out after the Nissan scandal. They should have pushed the Mitsubishi brand to the foreground and changed the Nissan name to Datsun.

Nissan can only be saved by massive state support at this point, Mitsubishi must slim down to half its size and limit the models further but cutting the pajero is another mistake. It was their flagship brand. They need to bring the Gto/ fto back. Instead of wanting to make, like all car brands now, a complete line up, they should focus on suv and affordable sportscars. Leave the family sedan to Nissan.

5 ( +5 / -0 )

Why not strategic lay offs instead of the arbitrary "people over 45"? (age is a number). How about targeting areas of the company with low profitability and workers with poor records or low productivity?

The arbitrary nature of this move means the company isn't really interested in cutting costs.

I was at my productive peak in my late 40s, due to all the experience and training I had received by then.

21 ( +21 / -0 )

If the early retirement benefits are good, I'd be glad to get out of the rat race. If they're eligible to receive company retirement benefits right away then that's golden. They'll have a steady income, free time, and a chance to make more money on top with whatever job they want to pick up.

-1 ( +2 / -3 )

This is not good news for the japan economy.but, it is what it is.

A lot will change in not only japan all over the world.

This is just beginning. more to come

4 ( +6 / -2 )

Mitsubishi Motors, which forms a three-way alliance with Nissan Motor Co and Renault SA, had a workforce of some 14,000 as of March on a parent company basis.

If only they let Carlos Ghosn to continune his plan with biggest merger in automotive industry, now each of company is strugling just to survive.

Workers age 45 or older, including those in management posts, in the company's Tokyo headquarters as well as factories in Aichi and Okayama prefectures are subject to the planned early retirement, the sources said.

People in this age is in their peak need to support their family.

16 ( +18 / -2 )

45 years old being targeted for early retirement? And I thought age discrimination in general was already bad. The world war against older people continues.

4 ( +13 / -9 )

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