December 25, 2008 / 1:36 AM / 10 years ago

UPDATE 1-Isuzu denies report to cut salaries of all workers

(Updates with company denial, changes dateline)

TOKYO, Dec 25 (Reuters) - Japanese truck maker Isuzu Motors Ltd (7202.T) denied a newspaper report that it planned to implement temporary pay cuts for all of its 8,000 full-time workers in Japan in response to a steep sales decline.

The Nikkei financial daily reported, without citing sources, that executive pay would be cut by about 30 percent starting in January, while manager-level employees are likely to have their pay cut by about 10 percent early next year.

Isuzu will also propose a “several percent” wage cut to its labor union to be implemented as early as April, the report said.

The cuts, which would last at least a year, are aimed at saving about 2 billion yen ($22 million) annually, the newspaper said.

“There is no truth to this report,” Isuzu said in a statement.

Isuzu reported a net profit of 30.1 billion yen ($333 million) for the half year to Sept. 30, down from 37.01 billion yen a year earlier, but market conditions have deteriorated since then. ($1=90.7 yen) (Reporting by Chang-Ran Kim in TOKYO and Ted Kerr in NEW YORK; Editing by Edwina Gibbs)

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