Business News

JAL President Haruka Nishimatsu is pictured during a press interview after a meeting with Land, Infrastructure, Transport and Tourism Minister Seiji Maehara at the ministry on Wednesday. (Mainichi)

Japan Airlines (JAL) has announced that it will begin talks with JAL retirees in a bid to seek their understanding regarding the government's proposal to slash its corporate pension payments as part of the rehabilitation plan for the financially troubled airline.

JAL President Haruka Nishimatsu visited Land, Infrastructure, Transport and Tourism Minister Seiji Maehara on Wednesday, and expressed his appreciation for the government's decision to provide bridge financing and other bailout measures the day before.

Requested to make across-the-board efforts to gain cooperation for the proposed pension cuts, Nishimatsu revealed that he would meet with the director of the JAL retirees' association on Thursday, and then with some 3,000 retired employees on Nov. 23 and 26, to ask for their understanding over the issue.

After the meeting with Nishimatsu, Maehara told reporters that he would not call for the early resignation of the president, saying: "JAL is facing a crucial turning point right now, so I insist that Nishimatsu grits his teeth and carries out his duties until the Enterprise Turnaround Initiative Corp. (ETIC) finalizes the bailout plan."

Meanwhile, Maehara earlier announced that "the government will move ahead with special measures, including possible legislation, in order to prevent taxpayers' money from being used for payments of pensions to JAL retirees," as a precondition to the reconstruction of the struggling company.

Takahiro Fukushima, a representative of the JAL retirees' group, is pictured during a press conference held at the Land, Infrastructure, Transport and Tourism Ministry following the submission of papers to Minister Seiji Maehara on Wednesday. (Mainichi)

In an attempt to solve the problem with the 304.2 billion yen shortfall in JAL's corporate pension reserves, the government is considering introducing special legislation to slash pensions on a mandatory basis if it fails to gain the consent of at least two-thirds of JAL pension recipients during negotiations over the issue.

On Wednesday, a volunteer group of JAL retirees campaigning against a revision of the corporate pension program submitted papers to Maehara, requesting a cancellation of the government's plan to propose the bill.

The group also called for an explanation on the specific contents of the "legislation" the government proposed, claiming that the pension program is a matter related to life security after retirement.

During a press conference following a submission of the report, Takahiro Fukushima, a representative of the retirees, said that the group is willing to have detailed discussions with management, saying: "We would like the government to clarify the relationship between corporate rehabilitation and a reduction in pension benefits."