60,000 to be transferred from NTT East, NTT West.
(EDS: ADDING DETAILS)
Nippon Telegraph and Telephone Corp.'s two regional carriers -- NTT East Corp. and NTT West Corp. -- will transfer a total of 60,000 workers to subsidiaries as part of their restructuring plan, NTT President Junichiro Miyazu said Thursday.
Miyazu disclosed the actual figures for NTT East and NTT West for the first time at a shareholders' meeting held the same day.
He also said NTT East and NTT West will push forward with consolidating sales outlets nationwide.
''Ordinary restructuring steps are not enough. We need structural reform and must go forth with considerably drastic measures,'' Miyazu said.
The 60,000 are among the total of 100,000 workers who will be transferred from NTT's group companies to subsidiaries in an effort to cut costs.
Company officials said the same day that a new wage system will be introduced for the 100,000 staff who will be transferred to regional subsidiaries.
Instead of being the same nationwide, wages at the subsidiaries will reflect
the wage levels of each region, meaning the workers' paychecks will be cut by 15-30% compared with current levels.
The group companies, together with the nationwide network of NTT ME Service companies -- which provide telephone maintenance and repair services -- will set up sales subsidiaries in the various regions to take in the workers.
NTT is currently holding talks with the labor union and hopes to adopt the new wage system in fiscal 2002 starting next April, the officials said.