AU Optronics’ top staff have been told to take a pay cut in a bid to save the company cash after the company has landed in the red.
AUO hopes that it will save $265,000 a year by making the noble move of cutting executive pay rather than throwing low paid workers out onto the street.
Of course canny chairman K.Y. Li has managed to dodge any drops to his wages as he is not a managerial staffer, says CENS, and only picks up a wage as part of the board of directors.
In the past companies have looked to send their workers off on enforced unpaid leave, but due to a strong backlash when such tactics were popularised during the recession hitting in 2008 it seems firms are wary of making such moves.
Now it seems executives have been targeted for poor performance, and are being told in no uncertain terms they too can have all the unpaid holiday they want, unless they get their act in gear sharpish.
With the panel industry suffering AUO has stated that it will lower the wages of it exec staff by 15 percent as a demonstration of their responsibility. It is not yet clear whether such a pay cut will trickle down to medium level staff.
AUO supremos have decreed that the overall environment can only be blamed so far, but exactly how much the executives are to blame is unclear. There has been a big downturn in panel maker’s fortunes across the board recently with various firms in precarious situations.
Domestic rival Chimei Innolux has also reported poor results, though has not yet announced any wage cuts as yet.
Meanwhile in China another panel maker HannStar has moved to dismiss rumours that it has laid off 20 percent of its staff at a module plant in, claiming that employees are merely being moved to another plant.
Like other panel makers, HannStar says that it is shifting its emphasis to small to medium panels as the large panel market suffers, and is converting its production line with this in mind. Employees working on small to medium size panels have apparently been moved in order accomadate this shift according to DigiTimes.