[Cost Reductions]Personnel expenses (FY2012)
| Result (¥ billion) |
Target (¥ billion) |
| FY2012 |
FY2013 |
Total of 10 years
(FY2012-2021) |
177.9
(171.4) |
96.9 |
1,275.8 |
*The amount provided in the parenthesis in FY 2012 results is the target amount.
FY2014
FY2013
FY2011
| Specific measures |
| Items |
Contents |
| Personnel Reductions |
- After general streamlining via readjusting the group structure and drastic operational streamlining, we will reduce the number of persons by cutting back on hiring and implementing voluntary retirements (approx. 7,400 employees on a consolidated basis, approx. 3,600 employees on a non-consolidated basis)
|
| Reduction of Salaries and Bonuses |
- Continue to cut annual earnings across the board (Supervisory employees -25%, General employees -20%)
- Introduce a new personnel evaluation system
- Reduce overtime wages (reduction to 25% on weekdays which is the bottom limit of the legal standard)
|
| Revision of the Retirement Benefit Scheme |
- Revise the pension system (reducing the interest rate used for revaluation [to 1.5% for active employees and 2.25% for retirees], and reduction of whole life annuity [-30%］)
|
| Revision of Benefit Programs |
- Revision of health insurance, asset-building schemes, cafeteria plan, employee stock ownership plan
|
| Thorough implementation of each measure |
- Implement “Unit Cost per Person” reductions by revamping the operations of the personnel system such as tightening job assignments. In addition to accelerating “the number of persons” to be cut, additional personnel cuts may be done predicated on future streamlining efforts.
|
*The revise of electricity rate applied on May 11, 2012 was approved on July 25 in the same year after reflecting the instruction based on the assessment policy of the Ministry of Economy, Trade and Industry.
TEPCO considers further cost reduction based on the above instruction as well.
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