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Comfortable Workplace Environment

Policy and Basic Approach

Internal Environment Improvement Policy

System

Ensuring Compliance to Labor Standards

Nippon Kayaku includes items related to labor conditions such as wages/bonus remuneration, working hours and holidays, occupational health and safety, welfare facilities and systems and service in the required training when new employees are hired by the company. These items related to labor conditions are always available on the internal intranet, etc., allowing employees to view them at any time.
In addition, the people in charge of personnel labor, etc. meet regularly to share information and enable the training of employees conducted via a person in charge of personnel at each site. Through these initiatives, we are thoroughly increasing employees' awareness of labor standards.

Indicators

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Key sustainability issues Corresponding SDGs Action plans Indicators (KPI) FY2025
Targets		 FY2022
Results		 FY2022
Topics for initiatives
Occupational Health and Safety in the Workplace GOOD HEALTH AND WELL-BEINGDECENT WORK AND ECONOMIC GROWTH
  • Strengthen the foundation for safe operation by thoroughly enforcing basic rules on safety and health and improving equipment and work procedures
  • Implement health and productivity management and provide a workplace environment with a healthy work-life balance where employees can work with enthusiasm
 Percentage of paid leave taken (Non-consolidated) 70% or higher (Non-consolidated) 63.7%
  • We failed to reach the target percentage of employees taking paid leave, but as previously, we continued to implement awareness raising activities via the Company intranet, had human resources and labor personnel call on employees to take paid leave at each workplace, set days on which employees are recommended to take paid leave, and implemented other measures
  • We started conducting engagement surveys and conducting interviews with companies that conduct surveys to determine the level of health & productivity management. Full-scale adoption is planned for the following fiscal year.
Ascertaining and improving employee satisfaction through questionnaire surveys (Non-consolidated) Disclose progress -

Initiatives

Promoting a Healthy Work-life Balance

Nippon Kayaku is working to promote next-generation workers and further women's empowerment and the introduction of various systems and measures with the goals of enabling employees to balance their job with childcare and nursing care, improving the productivity of individuals, maximizing their capabilities, and realizing workplaces filled with motivated employees.
We have also established the Anniversary Leave System with a vision for continuing to improve paid leave with the goal of enriching employees' work-life balance and we are committed to the creation of a work environment that is makes it easy to take paid leave.

Action Plan on Measures to Support Raising Next-generation Children (plan period: April 1, 2022 to March 31, 2025)

Action plan (4th: FY2022 to FY2024) (Japanese)
Status of progress (FY2022) (Japanese)

Various Systems for Promoting a Healthy Work-life Balance

Name of system Details
Flextime Introduced at the head office and some research laboratories.
Childcare leave Can be taken until the child is two years old when certain requirements are satisfied.
Childcare support leave Both men and women can take a special paid 10-day childcare leave.
Child nursing care leave Employees can take a 10-day (five days for medical checkups and immunization) paid leave to care for their children who are preschool age and younger. It is possible to take this leave in half-day leaves.
Anniversary leave A maximum of three days of paid leave can be taken annually for the birthdays of the employees and their relatives living together and their children's entrance ceremonies, commencement ceremonies and class observation days.
Caregiving leave Up to a year of leave can be taken for each family member.
Short working hour system When caring for children in the sixth grade of elementary school or younger, the predefined working hours can be shortened by up to two hours in increments of 30 minutes. When providing nursing care to family members, the work hours can be shortened up to three hours in increments of 30 minutes.
Working from home Introduced at the head office, research laboratories and pharmaceutical sales positions.
Staggered work hours With the start and closing times are predefined at a site and the predefined working hours for a day considered as standards, employees can move their start time forward or backward up to two hours in increments of 30 minutes.
Annual paid leave It is also recommended to take incentive leave several times a year and three continuous days of leave in summer.
Half-day paid leave Up to 30 half-days of leave can be taken annually.
Planned annual paid leave Leave during the consecutive holidays in May that is set at the headquarters offices according to the labor-management agreement (about one to three days).
Annual paid leave in hourly increments Up to three days (24 hours) of annual paid leave annually usable in hourly increments is currently in trial operation.
Special paid leave Up to 60 days of annual paid leave that will expire can be saved and taken for specified reasons including non-workplace injuries or diseases affecting employees or their families, childcare and nursing care, child nursing care, volunteer activities, marrow donor activities and active-life-leave at an employee's 10th, 20th and 30th year at the company.
Paid Leave
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Indicator Scope Unit FY2018 FY2019 FY2020 FY2021 FY2022
Average number of days of annual paid leave taken in a year Non-consolidated Days 11.3 11.1 12.2 11.1 12.0
Annual paid leave acquisition rate Non-consolidated % 61.1 60.1 65.8 59.8 63.7
Childcare
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Indicator Scope Unit FY2018 FY2019 FY2020 FY2021 FY2022
Started maternity leave*1 Non-consolidated Persons 8 13 13 11 22
Started childcare leave*1 Male Non-consolidated Persons 3 5 11 9 27
Female Non-consolidated Persons 8 13 13 11 22
Percentage of employees taking childcare leave*2 Male Non-consolidated % 7.0 11.9 31.4 27.2 69.6
Female Non-consolidated % 100 100 100 100 100
Percentage of employees who returned to work after maternity and childcare leave Male Non-consolidated % 100 100 100 100 100
Female Non-consolidated % 100 100 100 100 100
Retention rate after maternity and childcare leave Male Non-consolidated % 100 100 100 100 100
Female Non-consolidated % 100 100 100 100 100
Number of employees with shortened working hours to care for children Male Non-consolidated Persons 2 2 0 1 2
Female Non-consolidated Persons 26 31 43 42 48
  • *1Excluding the employees who took leave spanning multiple fiscal years
  • *2The percentage in 2022 was calculated using the method in Percentage of employees taking childcare leave or leave for childcare purposes (Paragraph 4, Item 2, Article 71)
Nursing Care
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Indicator Scope Unit FY2018 FY2019 FY2020 FY2021 FY2022
Number of employees taking caregiving leave Non-consolidated Persons 1 1 0 0 0
Number of users of the caregiving leave system Non-consolidated Persons 1 1 1 0 2

Appropriate Working Hours

Nippon Kayaku is working on establishing an appropriate understanding of working hours and preventing long working hours. More specifically, we have established a Working Hours Management Committee consisting of labor and management to investigate the actual working hours management situation and ask each site to submit a report on the related measures and their implementation status twice a year to check the details of the management of working hours.
In addition, the committee provides training to management supervisors and people in charge of personnel labor and holds study meetings hosted by both labor and management.
Furthermore, it is implementing a range of initiatives that go beyond compliance with laws and regulations such as the appropriate implementation of entrance/exit management, objective record management and overtime work management that also targets management supervisors.

Work Hours
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Indicator Scope Unit FY2018 FY2019 FY2020 FY2021 FY2022
Annual work hours per employee Non-consolidated Hours 1,919 1,911 1,885 1,911 1,875
Monthly average overtime hours Non-consolidated Hours 13.3 12.7 11.3 12.7 13.6

Wage Management

Nippon Kayaku established a rule clearly stating its intolerance of discrimination based on differences in gender, age, nationality, race, religion, disability, place of origin, ancestry, creed, political views, marital status, employment status or other differences in the Nippon Kayaku Group Human Rights Policy. Also through our personnel wage system, we apply a uniform remuneration system that does not discriminate based on gender. We are also paying appropriate wages in compliance with laws and regulations regarding floor wages, overtime wages and equal pay for equal work.

Salary

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Indicator Scope Unit FY2018 FY2019 FY2020 FY2021 FY2022
Average annual salary Male Non-consolidated Thousand yen 7,862 7,526 7,423 7,683 8,003
Female Non-consolidated Thousand yen 6,155 6,119 6,133 6,366 6,707
Overall Non-consolidated Thousand yen 7,577 7,307 7,224 7,477 7,801

Labor-management Relations

Nippon Kayaku Co., Ltd. and Nippon Kayaku labor union have been maintaining sound relations based on mutual trust between management and labor since the conclusion of a new labor agreement in 1998. Because Nippon Kayaku has a union shop system, with the exception of certain managerial and contract employees, all employees are members of the labor union.
The company's policy regarding their discussions is to be candid while disclosing as much information as possible and sincerely respond to them. Also, the Central-Management-Labor Liaison Committee meets three times a year, at which time the executive team directly communicates the company's management policies and health and safety policies, etc. with the labor union. A central management roundtable is held monthly to deepen mutual understanding, share information about the status of the company and discuss how to solve problems.
Also, we are making efforts to promptly communicate the details and outcome of these labor-management discussions to employees at each division.
At the same time, with respect to issues faced by individual sites, we hold yearly Site-Management-Labor Liaison Committee and monthly business site management roundtables to obtain a shared recognition through discussions and opinion exchanges and to bring about a labor environment where employees can work in comfort.

Record of the Management-Labor Liaison Committee Meetings Held

Conference name Details Number of meetings held in FY2022 Attendees
Central-management-labor Liaison Committee The company's officers explain the company's business policies, business strategies, and environment, health and safety policies, etc. to the members of the labor union and discuss issues to solve problems. 3 Company: executives, managers of related divisions, Human Resources Division
Labor union: Group executives, all heads of branch offices
Site-management-labor Liaison Committee The company explains the policies and business plan, etc. of the sites to the labor union and discusses issues to solve problems. Once Company: Executive teams of the sites (Plant Manager, General Manager of Corporate Controlling Department, General Manager of Manufacturing Department, General Manager of Engineering Department, etc.)
Labor union: Executive committee members of branch offices
Central Management Roundtable The company explains items related to its business plan, new businesses, management status, and statuses of production, sales, and research, and improvement of production technologies, staff plan, etc. to the executives of the labor union. 12 Company: Officer in charge of Human Resources Division, Human Resources Division
Labor union: Executives of the sectors
Business Site Management Roundtable The company explains items related to its business plan, new businesses, management status, and statuses of production, sales, and research, and improvement of production technologies, staff plan, etc. to the executives of the labor union. 12 Company: Executive teams of the sites (Plant Manager, General Manager of Corporate Controlling Department, General Manager of Manufacturing Department, General Manager of Engineering Department, etc.)
Labor union: Executive committee members of branch offices
Workstyle Advisory Committee We exchange opinions about the management of working hours, support for raising next-generation children, women's empowerment, employment of older people, welfare facilities and systems, various leave systems, personnel system, human resource education, childcare and nursing care and discuss issues to solve problems 7 Three people from the company, three people from the labor union

Freedom of Association

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Indicator Scope Unit FY2018 FY2019 FY2020 FY2021 FY2022
Number of employees who have joined the union*1 Non-consolidated*3 Persons 1,762 1,871 1,753 1,695 1,687
Percentage of employees that are union members*2 Non-consolidated*3 % 100 100 100 100 100
  • *1Number of people as of March 31 of each fiscal year
  • *2Number of union members/qualified people (except managerial employees and people specified in the agreement)
  • *3Including some affiliated companies

Initiatives for Occupational Health and Safety in Cooperation with the Labor Union

As part of our internal audits, we conduct environmental, safety and health audits of each Nippon Kayaku business site and some group companies based on an annual plan. In principle, the headquarters of the labor union and the labor union branches of the sites and group companies that participate in the audits participate in the environment, safety and health audits.
In the environment, health and safety audits, an audit team mainly consisting of the Environmental Protection & Safety Division people in charge of environmental safety, and the labor union check the progress against the Responsible Care Policy and Plan and activity results through meetings, documents or on-site patrols. The labor union also points out problems from their perspective, and labor and management work together to improve health and safety.
In FY2022, we implemented the environment, health and safety audits on site while paying careful attention to measures to prevent COVID-19 infections. We focused on checking the progress of Responsible Care activities using the Responsible Care progress checklist, potential dangers/risks to prevent the recurrence of past accidents based on investigations into their causes, and the status of the implementation of risk assessments in production processes.
We will continue to work on them with a high regard for the dialogue between labor and management, aiming to establish a working environment where employees can work in comfort in a good mental and physical health.

Welfare and Benefits Systems

Nippon Kayaku has introduced the following welfare and benefits systems to support lives of its employees.

Welfare and benefits systems Details
Social insurance Health insurance, employee pension schemes, care insurance, employment insurance and worker's accident insurance
Asset formation Employees' savings scheme, employee shareholding association, restricted stocks incentive system
Human resources development Overseas study program
Self-development Assistance for obtaining qualifications
Pension Defined-benefit corporate pension scheme
Housing Dormitories and rented company housing
Childcare and nursing care Leave systems, aid for buying nursery items and caregiving-related costs
Other Cafeteria plan
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