Panasonic offers pollution premium on top of pay for staff sent to China

Japanese electronics giant Panasonic said yesterday it would pay employees sent to China a wage premium to compensate for the country's hazardous air pollution, in a possible first for an international company.

The move was part of a wider deal reached in Japan's annual labour talks, which saw major firms, including Panasonic and Toyota, agree to boost workers' salaries for the first time in years amid concerns about an economic slowdown after a rise in the sales tax next month.

A Panasonic spokesman confirmed the pollution-linked pay premium for its expatriate workers but declined to give further details, or say how many such workers it had in China, which has extensive trade and business links with Japan.

So-called hardship pay is not unusual for employees of foreign firms sent to work in China, but Panasonic is believed to be the first to announce a premium to compensate for polluted air.

A Panasonic document from the labour talks said: "As for the premium for expatriates to compensate for a different living environment, the company will have a special review for those sent to Chinese cities."

At the weekend, a top Chinese environment official said that air quality was below national standards in almost all China's major cities last year. Premier Li Keqiang has pledged to "declare war" on pollution.