TOP > Sustainability > Social Report > Together with employees

Together with employees -
Personnel-related actions

Social background

Amidst a variety of CSR-related standards and targets being established (i.e. the Ten Principles of the United Nations Global Compact, ISO26000, OECD Guidelines for Multinational Enterprises, the 4th edition of Sustainability Reporting Guidelines (G4 Guidelines), the International Integrated Reporting Framework and Sustainable Development Goals (SDGs), there were repeated cases where narratives relating to human rights and labor were reinforced. The global community is strongly demanding that companies emphasize respect for human rights and workers’ rights more when engaging in business activities.

The way of thinking by JTEKT

Creating a friendly work environment for all

JTEKT promotes the creation of a workplace in which all of our employees find it easy to work, considering various aspects such as human development, respect for diversity and safety and hygiene. Our company believes that, as we expand globally, it will become even more important to deepen understanding towards human rights and share this with group companies both domestically and overseas.

Respect for human rights and utilization of diverse human resources

JTEKT's Corporate Activities Standards states the following; "Respect the individuality of employees, create safe workplaces that motivate employees and enable them to fulfill their potential and strive to provide each with abundant living circumstances." We give explicit instructions regarding the prohibition of discrimination based on race, nationality, faith, gender, sexual orientation, age, mental/physical disabilities, etc., as well as the prohibition of child labor and forced labor, and purport recognizing employees freedom of association based on the laws of each country and region, and the purport that we will engage in discussion and dialogue with employees and their representatives with sincerity. We share and enforce this thinking with our group companies both in Japan and overseas. Additionally, we engage in various activities to utilize diverse human resources.

Main actions

  • Hiring foreign employees
  • Assisting female employees’ career development
  • Employing persons with disabilities
  • Changing fixed-term employees to permanent employees
  • Providing assistance for those engaged in childcare or family care
  • Reduction of work outside regular hours and encouragement of paid leave usage
  • Providing post-retirement employment opportunities
  • Various education concerning human rights, etc.

Direction of human resource development

Based on the following 3 points, JTEKT constructed a systematic human resource development system to enable all employees to grow while achieving a sense of accomplishment.
In addition, in the wake of changes in working styles due to COVID-19, we will shift to a new autonomous learning system from FY2021.

  • 1. Develop employees who understand the Corporate Philosophy and are professional, creative, highly skilled, and able to achieve management goals.
  • 2. Develop employees who have confidence, pride, and passion, think for themselves, and act as a member of the JTEKT group.
  • 3. Develop employees who respect human rights, live in harmony with the environment, observe social rules, are sensible, and have an international perspective.

Maintaining high motivation and enhancing abilities

Our human resource development system, consisting of training, evaluation and compensation, enables employees to continually improve their skills and provides them with a motivating working environment during their years in the company.

Maintaining high motivation and enhancing abilities

Main activities FY2020

Labor-management relations and employment

Emphasizing labor-management communication

JTEKT places importance on labor-management communication and facilitates numerous opportunities for direct dialogue between workers and management on a companywide, individual bussiness fields andl plant basis. These include various social gatherings and discussion sessions. Workers and management exchange opinions on company development and stabilizing/improving employee quality of life and strive to deepen mutual trust and understanding by building even firmer relationships.

Labor-management discussion opportunities (held in FY2020)

  • Central Labor-Management Meetings (6 times)
  • Business field/function section Labor-Management Meetings (2 times)
  • Business field section Labor-Management Meetings (2 times)
  • Business Facility Labor-Management Discussions (monthly at each business facility)
  • Plant Production Section Meetings (monthly at each plant)
  • Workplace Discussions (as required at each workplace)
    etc.
  • Labor-Management Committee (2 times)

Initiatives relating to paid leave and working hours

JTEKT aims to create a workplace in which employees find it easy to use paid leave. Labor and management cooperate together to periodically check the usage status of paid leave in order to improve the usage rate. Moreover, business reform is also promoted by indirect departments as one theme of the Mid-term Management Plan. JTEKT is striving to reduce working hours.

Labor condition transition (Average per each workers union member)

2014 2015 2016 2017 2018 2019 2020 (FY)
Total work hours (hours) 2,107.2 2,089.8 2,080.3 2,089.7 2,075.6 2,032.7 1,746.6
Work outside of regular hours (hours) 345.7 334.9 331.6 343.9 335.0 292.9 146.4
Percentage of paid leave consumption (%) 67.4 71.6 72.4 74.0 77.0 78.0 71.6

Maintain employment

In FY2020, JTEKT continued to exert efforts to maintain employ- ment through various measures such as reassignment from the perspective of effectively utilizing resources. JTEKT observed the relevant laws and internal regulations for managing the employ- ment of fixed-term workers. In FY2020, 7 fixed-term workers were appointed as permanent employees.

Transition from fixed term workers to permanent employees

2016 2017 2018 2019 2020 (FY)
Number of transitions made (people) 72 68 79 47 7

Composition of employees as of the end of March 2021

Male Female Total
Permanent employees 11,001 1,031 12,032
Fixed-term employees (*1) 2,018 440 2,458
Total 13,019 1,471 14,490

*1 Total fixed-term, part-time, reemployed, and temporary employees

Male Female Average
Years of employment 16.3 12.1 16.0
Job turnover rate (*2) 1.11%
Job turnover rate within the first 3 years (*3) 3.51%

*2 Voluntary early retirement rate
*3 Permanent employees, seasonal recruits, voluntary early retirement

Global management

Formation of a global human management/development framework

Around 60 percent of JTEKT group’s entire employees work outside Japan. JTEKT promotes the establishment of the global human management/development framework, putting importance on diversity and aiming at preparing the optimal environment for the employees and the company so that motivated and capable people, regardless of nationality or race, could display their ability, beyond national and regional borders.

It is being required to further develop and promote leaders that can play responsible roles beyond national or region borders, in particularly order to accelerate our global business development.
JTEKT holds regional Succession Committees to discuss the discovery, development and appropriate allocation of potential successors for each major post both in Japan and overseas. We also gather information from each region and hold a Global Succession Committee attended by board members to discuss the development and optimal allocation of human resources for the group overall.
Moreover, the personnel nominated at the Succession Committee as the candidates for senior management are provided the opportunity to participate in selection-based training held at JTEKT Head Office. The purpose of the training is to systematically develop their management skills with global perspective.

Percentage of foreign nationals in major overseas posts (consolidated)

2018 2019 2020 (FY)
Foreign employees in the general manager class No. 140 195 252
Percen-tage (%) 65.7 74.1 75.8

Global Succession Committee

Hiring and utilization of foreign employees

Even within Japan, JTEKT is proactively hiring and utilizing excellent human resources regardless of nationality.

Foreign employee hiring results (general office/engineering)

2016 2017 2018 2019 2020 (FY)
Seasonal hiring no. 14 12 12 5 2
Mid-career hiring no. 1 1 1 0 0

Strengthening of employees’ English abilities, bidirectional employee interaction between Japan and overseas

JTEKT also strives to strengthen the English ability of its employees overall in order to develop professionals capable of working globally. In addition to providing motivation-raising strategies such as an internal TOEIC exam and self-study courses (company-subsidized), as part of our overseas trainee system, we also arrange for young employees who are willing to work at JTEKT’s overseas group companies at an early stage in their careers, so that they may improve their language ability and cross-cultural communication skills.
Moreover, from FY2016, JTEKT will fully promote training in Japan for employees of its overseas group companies by utilizing an inter-company transfer visa. Rather than the conventional one-way pattern of sending employees from Japan to overseas, we will begin bidirectional employee interaction between Japan and overseas.

Human resource development for office and engineering staff

The JTEKT training system is composed of four pillars: rank-based training, job title-based training, age-based training and selec- tion/theme-based training. We also focused on supporting the acqui- sition of qualifications and self-study efforts. Training to strengthen problem-solving ability is conducted on a rank-based basis, and from FY2015, task-based problem-solving training has been held for employees with Assistant Manager status in order to strengthen ability to imagine issues and leadership. JTEKT is also developing prob- lem-solving trainers on a global scale so as to foster a culture where- by senior employees pass on their knowledge to junior employees.

Gain the ability to imagine issues

There may not be any problems now, but environments do change. JTEKT plans to commence training particularly for Assistant Managers to imagine future issues and take preemptive measures in order to respond to customer needs five/ten years from now.

Consider the gap between “the vision for the future” and the “present”, then devise issues for the future by oneself

Task-based problem-solving training program

First session Second session Third session
  • Explanation of task-based problem-solving
  • Improve action plan by using problem-solving steps
  • Make presentation on improved action plan

Expand targeted employees

JTEKT will spread the problem-solving concept for all levels on an ongoing basis.

Expand targeted employees

Human resource development for production staff

The JTEKT training system is composed of the three pillars of companywide training, workplace-based training and self-study. Regarding companywide training, apart from a career development program (rank-based training) which is based on training at the JTEKT Technical Training Center (*1), we carry out supervisor training, skill training courses, TWI supervisor trainer development courses (*2) and TWI 10-hour courses. Regarding workplace-based training, we implement OJT (*3) training covering the specialized skills necessary to pass down to future genera- tions, as well as special training and skill courses for the obtain- ment of certifications necessary in the line of work. In recent years, we have been focusing on sheet metal training for KL in order to improve the ability of improvement work.We support the self-study of employees so they may attempt the National Trade Skills Test, QC Test, Voluntary Conservation Officer recog- nition, etc.

*1 JTEKT Technical Training Center Provides vocational training approved by the prefectural governor of Aichi. Focuses on developing excellent production personnel.
*2 TWI supervisor trainer development course TWI is an abbreviation for “Training Within Industry”. It is internal training for supervisors.
*3 OJT Abbreviation for “On the Job Training,” or training carried out during actual work.

Rank-based training types and main content

Training Main content Attendees
Managers Training for new department managers CSR,workplace management -
R3 training for new managers CSR,policy management,daily task control 129
Office & engineerinng staff R4 training for new office & engineering staff CSR,leadership,planned fulfillment of tasks 165
R5 training for new office & engineering staff Business communication skills 167
R6 training for new office & engineering staff Problem solution methods and concepts 171
Training for office & engineering new employees CSR,JTEKT employee basic knowledge and mindset 125
Production staff Training for newly appointed production managers Acquisition of an internal human resource development framework and TPS * production system 4
Training for new Chief Leaders CSR,management basics and planned fulfillment of tasks -
Training for new Kaizen Leaders Basics of workplace improvements and acquisition of production systems -
Training for new Group Leaders Problem solutions based on QC concept -
Training for new production employees CSR,JTEKT employee basic knowledge and mindset 28

If there is a "-" in the Attendees column, the training was postponed due to the influence of due to COVID-19.
※ TPS TOYOTA Production System

Unfortunately, we were uncrowned at the 58th National Skills Competition.

At the 59th National Skills Competition to be held in Tokyo in December 2021,we compete together and win awards.

Promotion of TQM Activities

In the medium-term management plan for 2021, we have formulated JTEKT's TQM basic principle.
The basis is the same as the basic principle of TQM so far, but it is a basic principle that clarifies the connection with the mission of the company. Through QC circle activities, ingenuity proposal system, etc., we are working to develop human resources who can put into practice JTEKT's TQM basic principle.

Promotion of TQM Activities

External activities of QC circle

The "Kururu Circle" of the Hanazono Plant Manufacturing Department received the "Kaoru Ishikawa Award Encouragement Award *

* Kaoru Ishikawa Award Encouragement Award
This award was established in commemoration of the achievements of "Dr. Kaoru Ishikawa" who was active as a pioneer of quality control in Japan.

(Awarded for outstanding presentations, especially in terms of creativity and leadership)

Respect for diversity

Promoting diversity

In the midst of an ever-changing management environment, represented by globalization, accepting and utilizing personnel with diverse values irrespective of gender, nationality, age, cul- ture and so on is essential for a company to continue growing. JTEKT positions the promotion of diversity as an important management strategy for the achievement of the JTEKT GROUP VISION and engages in various initiatives accordingly.

Reform awareness of all employees and encourage a diversity mindset

In order to promote diversity, first, all employees must understand the necessity and the purpose, change their awareness and their conduct. To this end, JTEKT takes the approach of including the theme of diversity in the President’s message, e-learning for all employees and incorporating a diversity component in our rank-based training.
Since FY2016, JTEKT has hosted the diversity seminar featuring guest experts.

Promotion of utilization of women

Assisting female employees in developing their careers

In order to accelerate female participation in the workplace, JTEKT conducted an actual condition survey targeting all female employ- ees and all management personnel in FY2014. We investigated the environment surrounding female employees, awareness of female employees’ work and the development/assessment by superiors of subordinates. Based on the issues brought to light through this survey we established the following four elements which have been focused on since FY2015.

1. Reform consciousness We implement training for all administrative positions on understanding diversity management from the aspects of eliminating stereotyped perception of gender roles, and the nurturing of female subordinates.
We conduct career training for women in all positions on long-term career design and network formation.
2. Dual support Creation of systems and environments enabling employees with limitations to continue working
Introduction of systems aimed at supporting career development
3. Foster culture We foster a corporate culture that enables all employees to flourish, regardless of gender, based on diversity education for all employees as well as other methods.

Management diversity training (1 day)Management diversity training

Career training for female employees (2 days)Career training for female employees

No. of females hired/appointed managers (enrollment basis,unit: person)

2016 2017 2018 2019 2020
Total no. of women hired through seasonal recruitment 38 41 48 52 18
(Total no. of employees hired through seasonal recruitment) (344) (306) (310) (257) (258)
No. of women managers 16 18 21 22 24
(Total no. of managers) (1,967) (2,015) (2,041) (2,057) (2,061)
No. of women assistant managers 65 67 69 84 89
(Total no. of assistant managers) (1,486) (1,528) (1,538) (1,603) (1,641)

Formulation of an action plan based on the Act of Promotion of Women's Participation and Advancement in the Workplace

Based on a law relating to promoting women in the workplace (the Act of Promotion of Women's Participation and Advancement in the Workplace), JTEKT formulated an action plan.

Plan period Apr. 1st 2020 – Mar. 31st 2023
Issues
  • Low percentage of women in managerial positions (1.2% or 24 women as of March 31st, 2021)
  • Low percentage of men who take childcare leave (8.0% in FY2020)
Target
  • By March 31st, 2023, increase 40 women in managerial positions (2.5 times compared with January, 2015)
  • By March 31st, 2023, increase the number of men more than 13%.

Promotion of the dual support system

Enhancement of the dual support system

JTEKT is exerting efforts to support all employees, regardless of gender, to balance child-raising or caregiving with work. To this end, we are enhancing the systems and creating workplace environments in which employees can easily utilize such systems.

Overview of dual support system

Overview of dual support system

Description of major schemes

Parenting leave
[revised in FY2015]
Available until child turns one.
(if unable to secure spot in daycare center, can be extended until the child turns 2)
Mom & Dad Child Care Leave Plus Available until child is 14 months old if both parents take parenting leave.
Shorter working hours for parenting
[revised in FY2015]
Parents can shorten the hours they work in one day until March 31st in the year that the child completes grade 2 of elementary school.
Daycare support
[revised in FY2015]
If parents work on public holidays, a room in the workplace is used by a professional to provide child-minding services.
Aichi prefecture
Four Toyota Group companies jointly operate Cooperative nursery school "Tacchichi House" primarily concentrated in the Mikawa region of Aichi prefecture. Tacchi House provides a childminding service during company operational hours.
Babysitter subsidization scheme
[revised in FY2015]
Employees can arrange babysitters for their children subsidized by the company when they have work commitments.
The company covers 50% of babysitting costs with an annual limit of 240,000 yen/person
Family care leave A total of 365 days leave available for each family member in need of care. (Able to be broken into a maximum of three periods)
Shorter working hours for family care Able to acquire up to two times within three years of first using the system for each family member requiring care.
Comeback support system A system where employees who have had no choice but to resign due to their spouse being transferred or the need to care for a family member can return to work (comeback) if they have registered to do so upon their resignation and their circumstances allow it. In principle, this system is available for up to 5 years after resignation.
Childcare plan support
[From FY2018]
Employees who wish to receive infertility treatment are eligible to take accumulated leave if they apply (maximum of 30 days/year).
Employees who have no choice but to resign on grounds of infertility treatment may take advantage of JTEKT’s “Comeback support system”.

Dual aspect support in addition to the organizational system

Supporting the dual aspects of work and parenting

In FY2017, JTEKT distributed a handbook for supporting work and parenting to all management-level employees and employees planning to take parental leave. We also prepared the website specifically for people taking parental leave and have established the framework enabling employees to utilize free online services such as seminars, etc. for skill enhancement, as well as established a 24-hour consultation desk. In addition, we held a “Seminar for Supporting Employees Balancing Work and Parenting” for all management-level employees so that they are able to provide staff members who are balancing both work and parenting with the appropriate support.

Supporting the dual aspects of work and nursing care

Since FY2017, JTEKT has operated a 24-hour phone-based consultation service dedicated to employees whereby the specialists give advice on nursing care. Moreover, JTEKT also hosts a “Seminar for Supporting Employees Balancing Work and Nursing Care” which serves as an opportunity for employees to learn from specialists about how to prepare for a nursing care situation and what to do when faced necessity of nursing care.

Number of employees who took childcare leave

2016 2017 2018 2019 2020
Number of employees who took childcare leave Female 36 38 44 39 46
Male 5 11 16 29 56

Number of employees who took family care leave

2016 2017 2018 2019 2020
Number of employees who took family care leave Female 0 1 2 3 2
Male 2 0 3 3 2
Realization of flexible working

In April 2018, JTEKT introduced a work-from-home scheme for indirect departments at the aim of securing opportunities for balancing work and personnel life as well as self-development. This scheme gives the independent employees the opportunity to work with flexibility.

Promotion of utilization of elderly people

Reemployment of retired employees

To allow highly motivated retired employees with abundant knowledge and experience to continue working, JTEKT established a post-retirement reemployment system in April 2006. As of March 31st, 2020, 662 people reemployed by JTEKT and related companies were working at various workplaces and training younger employees who will one day become the leaders of JTEKT.

Application pf the post-retirement reemployment system in FY2019

Number of those who are applicable 206
Number of applications [a] 188
Number of re-employed [b] JTEKT 178 188
Group companies 10
Rate of employment [b/a] 100%

Provision of training and tools to consider asset building

A re-employment system clarifying expectations and roles was launched in FY2014 aimed at employees who return to work after retirement. In FY2015, an Asset Building Exploratory Labor-Management Committee was established to discuss pre-retirement asset building so that employees may retire with a sense of reassurance. In FY2016, the committee organized an increase in the amount JTEKT contributes to the Defined Contribution Plan and confirmed it would be providing training and tools for asset building aimed at raising employee awareness.

Promotion of active participation by middle-aged/senior employees

Enhancement of career/life training

JTEKT’s career/life training used to focus on employees turning 50 and 55 years old, however starting from FY2016, we began incorporating training targeting employees turning 28,30 and 40 years old. With the aim of providing an opportunity for employees to consider their life plan including their careers, assets formation, health management and knowledge of nursing care, training content is adjusted to suit the target age.

Career/life training participants (FY2019)

Name of training Target No. of participants
28 y.o. – Career/life 28 training participants Skill jobs 149
30 y.o. – Career/life 30 training participants Administrative jobs 124
30 y.o. – Life 30 training participants General jobs 4
40 y.o. – Career/life 40 training participants managers/Administrative jobs/Skill jobs 339
40 y.o. – Life 40 training participants General jobs 14
50 y.o. – Career/life 50 training participants All employees 309
55 y.o. – Career/life 55 training participants All employees 170
Total 1,109

* The training in FY2020 was postponed due to the impact of the COVID-19

Employment of people with disabilities

Employment of people with disabilities

JTEKT supports the active participation of employees with disability in the workforce by creating comfortable workplaces and allocating personnel to best suit the characteristics of their individual disability. Moreover, with the retention rates of persons with disabilities not increasing in society as it should be, JTEKT is exerting efforts to help increase this rate by encouraging a good understanding of workplaces and tasks through hands-on training.

Number of disabled persons employed
(as of March 31st, 2021)

No.of employees with disabilities 314
No.of employees according to legislation 312
No. over or short 2
Employment rate 2.27%

* In accordance with legislation, employees with severe disabilities are counted twice (as 2 people) in the above table.

Employee satisfaction improvement

Adoption of Cafeteria Plan for benefits

JTEKT has adopted a selection-based benefit program (Cafeteria Plan). Employees can freely select from the benefit menu, includ- ing food, travel, and family care, according to points received. In FY2020, the point usage rate was 96%.
We support our employees in having a fulfilling life through various programs and facilities such as the employee savings scheme, employee shareholding association, dormitories, and gym.

Improve internal motivation

Internal communication (Message from the President)

"Passion Journal" was launched in June 2020 as a communication tool to convey President's management policy to all the employees.
According to the monthly theme, the contents that convey the message from the president in an easy-to-understand manner like social media format are projected onto PCs that are lent to the employees while archive app is also accessible to review past messages.
In addition, the function that allows to post questions to the president enables mutual communication, which is used as an effective tool to spread the intentions of the company's top management within the company.

Enlighten the awareness of associates

While JTEKT is surrounded world's drastic change, every associate is input and updated with latest general information in many occasion for further comprehension and consciousness of the world.

(1) House magazine featuring "SDGs"
What kind of social issues will we solve and become a corporate group that contributes to the world?
Through each of our businesses, we will share specific examples of aiming to solve social issues in our house magazine and implemented efforts to spread it throughout the company.
January 2021 issue: Let's think about what we can do in our daily work with the SDGs as our own!
June 2021 issue: JTEKT Reborn first year special feature issue "Our SDGs"

Associates appearance on the radio program

Since 2017, JTEKT has been sponsoring the CBC radio program "Ishizuka Motoaki's Newsman". With good relationship with CBC, they offer us opportunities to appear our associates in a corner of the program four times per year. These opportunities allow us not only to appeal JTEKT to the listeners of the program, but also to encourage related associates lively.
In November 2020, two members of Driveline System Engineering Department 2 appeared, and introduced the experiences of being involved in the development of ITCC and TORSEN installed in Toyota "GR Yaris".

From the left, Ishizuka Anchorman (CBC), Driveline System Engineering Department 2, Asami, Inoue, Broadcaster Watanabe (CBC)
From the left, Ishizuka Anchorman (CBC), Driveline System Engineering Department 2, Asami, Inoue, Broadcaster Watanabe (CBC)