Toyota to move to merit-based pay for factory workers: Nikkei

(Reuters) – Toyota Motor Corp <7203.T> will change the way it pays factory workers, focusing on their performance rather than their seniority, the Nikkei reported on Monday.

Toyota’s new arrangement, designed to attract young talent, will apply to about 40,000 employees, or about 60 percent of its workers, aged between 18 and 65, according to the Nikkei. (http://s.nikkei.com/1EMRveN)

The automaker has unveiled the proposal to its labor union and is hopeful of rolling it out next January, the Nikkei said.

Employees will be evaluated twice a year, with wages adjusted every six months, the Nikkei reported.

Besides revamping its seniority-based system, the new arrangement will also reshuffle allowances for dependents to provide greater benefits to workers who are raising children, the financial daily reported.

(Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Savio D’Souza)