Hitachi Ltd. has proposed to its labor union that workers take a 5 percent wage cut for one year beginning April 1, company sources said Thursday.
The sources said the proposal will be implemented separately from an annual wage deal struck Wednesday.
Under the latest wage accord for the 2002 business year, Hitachi employees will receive standard yearly hikes of around 2 percent.
However, the proposed 5 percent cut would eat into the gains, leaving workers with a 3 percent pay cut in real terms.
Hitachi is the first major electronics firm to introduce a pay cut after completing annual spring wage talks with labor unions.
Management regards the proposed cut as an emergency measure to help reinvigorate its performance, the sources said.
Hitachi, whose business has been severely deteriorating, forecasts a group net loss of 480 billion yen on revenues of 7.8 trillion yen for the current business year.