TEPCO Tightening Its Belt

3 years ago by in Travel

ce5f02406751548b232b0fa192aec8941 TEPCO Tightening Its Belt

Photo by Daveeza

The Tokyo Electric Power Company is taking steps to help cover some of its major costs as a result of the partial meltdown at the Fukushima Daiichi nuclear power plant six weeks ago.

NHK reported Monday that the utility company is cutting salaries to help raise much needed capital. According to the report, all board members will receive a 50 percent pay cut, which includes the chairman and president. Other board executives will take a 40 percent hit in their income.

The cuts will be felt in all levels of the corporation. About 3,000 managers will receive a 25 percent pay cut and 32,000 regular employees will have their salaries cut by 20 percent. TEPCO will also hold off on hiring new recruits for the fiscal 2012 year. Earlier this month the Japanese government ordered TECPO to pay up to ¥1 million to residents forced out of their homes after the partial meltdown at the nuclear power plant in the Fukushima Prefecture. The total cost could be around ¥600 million; however because of the spreading radiation problems, the finally tally could be much higher.

The company is also planning to sell off some of its stock holdings and real estate to help raise the money needed to cover all of its costs. [NHK]