Chinese Staff to Replace Japanese Managers by 2012, Komatsu Says

Komatsu said this week it would replace all of its managers at its 16 subsidiaries in China with local personnel by 2012, according to online news reports.

The report said the decision follows strikes at Toyota and Honda assembly lines in China protesting pay, working conditions and the lack of ability of Chinese staff to progress in Japanese-owned companies. Although non-Japanese make up half of Komatsu’s European and North American management staff, China, which is the equipment manufacturer’s biggest market, will be the first country where top management will be completely replaced by local personnel.

Komatsu plans to develop an education program to train Chinese staff about its corporate culture.