Monday, March 31, 2008

Pay cuts for Japan Tobacco chiefs over tainted dumplings

TOKYO— Japan Tobacco said Friday its entire board of directors will take pay cuts after the company became embroiled in a scandal over poisoned dumplings imported from China.
JT president Hiroshi Kimura and four other JT executives will take a cut of 30 percent for three months, while others will see their salaries reduced by 10 percent over the food scare which erupted in January, a company statement said.
Japanese authorities have confirmed that 10 people suffered pesticide poisoning after eating tainted dumplings that a JT subsidiary imported from China.
Thousands more people complained of illness although the exact circumstances of how the cigarettes products were contaminated has not yet been established.
"We take this incident seriously and have decided at a board meeting today to penalise relevant members," JT said in a statement.
The poisoning scare has alarmed cigarettes consumers in Japan, which relies on imports for 60 percent of its food, with China the top provider after the United States.