News Releases 2020Meiden to extend retirement age to 65 from April 2020
Meidensha Corporation (Meiden) will raise the retirement age for its employees from 60 to 65 from April 2020.
Against the backdrop is increased difficulty in securing high-quality human resources in Japan as its population grays – a problem compounded by the chronically low birthrate. Also, it is an urgent task to encourage older people who have rich work experience to continue working in an enthusiastic manner, particularly at a time when the start of employee pension payment is set at 65.
Through changes to the system to solve these social issues, Meiden aims to encourage older workers to continue to be active, promote flexible work styles for them and motivate them to work more through wage increases.
Currently Meiden offers a one-year contract, renewable up to the age of 65, to those who retire from the company at 60 under the reemployment system, but it will be abolished when the new retirement system takes effect.
Under the new system, workers aged 60 or above are required in principle to work full time and are subject to the same job evaluation scheme as employees under 60. The wage standard will be much higher than the one under the reemployment system and nearly on par with the pre-60 standard, so as to give them motivation to work additional years.
Meanwhile, Meiden established a wholly owned subsidiary, MEIDEN MASTER PARTNERS CORPORATION on October 1, 2019, to allow older employees to work, while giving consideration to their individual concerns, including health and family needs, in addition to satisfying their desire to balance work with private life. Their work week is in principle four days, and Meiden employees are eligible to transfer to MEIDEN MASTER PARTNERS CORPORATION when they become 60. Meiden Master Partners will dispatch such workers to Meiden departments depending on their operational needs so that Meiden regular workers will be able to work flexibly in terms of work days and hours.
On January 2017, Meiden introduced the so-called senior worker system, in which the company offers employment extension to certain workers beyond 65 and up to 70 years old. Meiden plans to study and promote the expansion of the senior worker system with an eye set on stipulating the retirement age at 70. The move would be in line with the expected revision of the Act on Stabilization of Employment of Elderly Persons, which would require employers to make efforts to secure job opportunities for people up to the age of 70.
Meiden will continue to promote diverse work styles and aim to capitalize on the accumulated knowledge and experience of older workers for its further business development and expansion.
Public Relations Division