Seniority-based pay, which almost disappeared amid the prolonged recession, may be staging a comeback at some firms where performance-based salaries are not working effectively.
Akira Fujii, president of Tokai Rubber Industries Ltd. in Komaki, Aichi Prefecture, decided that the firm's seniority system should be reintroduced.
From April, the company will pay the equivalent of two months' salary to management staff in accordance with their years at the firm.