This will make it even more necessary to scrap the seniority-based pay system, because keeping older workers on will be prohibitively expensive.

ECONOMIST: Insiders and outsiders

Gates didn't say whether the tenure-based pay system and job security favored by unions plays a role, but he wants to figure out a fix.

FORBES: Magazine Article

Because of a seniority-based pay system, this puts a huge strain on business costs, leaving less money to provide young people with training and good jobs.

ECONOMIST: Into the unknown

The second objective is to deal with the problem under the current system of ineligibility based on failure to pay into the system, i.e.

FORBES: Work Begins on Reforming the National Pension (3)

Time Magazine this week gave up some of its free print content in favor of a pay-based system.

FORBES: Prince Is Right. The Internet Is Over.

The 21, 400 workers at its existing plants won't face pay cuts, but Toyota is exploring revising its pay system to make it more performance-based.

FORBES: Relentless

It also plans to unshackle health-care costs from labor costs by freezing the amount employers pay into the system and shifting from income-based contributions toward a flat-rate health insurance premium.

WSJ: Germany Strains to Fund Health Care for All