In an unusual move, Mitsui Trust & Banking Co. plans to cut wages to the level of those offered at Chuo Trust & Banking Co. after its planned merger with Chuo in April 2000, industry sources said Monday.
Normally, a merger between financial institutions would prompt the firm with a lower wage level to increase the pay so it equals that of its partner. Salaries at Chuo Trust are reportedly among the lowest at major financial firms.
The decision by Mitsui Trust reflects the serious business environment surrounding the banking industry, the sources said. The sector is facing strong pressure from financial authorities to streamline as they seek trillions of yen in funds under the government's recapitalization scheme.