(Bloomberg) — Honda Motor Co. plans to shake up job terms next fiscal year and lift its retirement age by five years to 65, making the carmaker one of Japan Inc.’s biggest companies to take action in coping with the nation’s aging demographics.
Other proposed changes applying to about 40,000 employees at Honda and five of its group companies include a shift to child care and nursing allowances, rather than family allowances, spokesman Ben Nakamura said Monday. Honda also plans to introduce a work-from-home and partial-workday system, and adopt a salary and bonus structure that widens the pay gap between higher and lower performers.
The moves could position Honda as one of the Japan’s most aggressive companies seeking programs and policies to help deal with a population that is aging at the fastest pace in the developed world. More flexible work arrangements also may contribute to Prime Minister Shinzo Abe’s initiatives to boost the proportion of women in the workplace.