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Hitachi

Hitachi High-Technologies GLOBAL

Our Corporate Culture Policy states that we will respect the abilities of every employee and inspire confidence to tackle new challenges, build a vibrant, enterprising company that is open to new ideas, and encourage speedy and efficient performance through teamwork. Accordingly, we are endeavoring to enhance the environment in various ways to bring out the full potential of our employees.

Respect for Human Rights

Basic Approach

In April 2014, the Group formulated the Hitachi High-Tech Group Human Rights Policy to complement the Hitachi High-Tech Group Code of Conduct. This policy clearly states that we regard the human rights described in the International Bill of Human Rights and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work as the absolute minimum level required. It stipulates that the Group will conduct human rights due diligence* and provide appropriate education based on the UN Guiding Principles on Business and Human Rights, and will comply with the laws and regulations of the regions and countries where we do business. Furthermore, it states that where there is a conflict between internationally accepted standards of human rights and domestic law, we will pursue the approach that respects international principles of human rights. Based on this policy, we aim to respect not only the human rights of Group employees, but also those of all stakeholders through the Group’s business activities and our products and services.

  • * Human rights due diligence:
    The practice of identifying, evaluating, and addressing the impact of business activities on human rights, implementing measures to prevent, mitigate, and/or relieve any negative impacts, and conducting ongoing verification and disclosure of the effects of such measures

Human Rights Due Diligence

We pledge to fulfill our responsibility to respect human rights through the implementation of the UN Guiding Principles on Business and Human Rights.
Human rights due diligence includes identifying and evaluating potential or actual impacts on human rights, and taking steps to prevent or mitigate risks. Hitachi High Technologies will continuously verify the effectiveness of these steps to effectively deal with the effects and risks related to human rights. Specifically, we periodically investigate compliance risks that are of concern, and include human rights issues and labor issues in the scope of our investigations. In the unfortunate event of a problem arising, we hold a special meeting and deliberate over conducting a factual survey, a causal investigation, corrective measures, and measures to prevent recurrence, etc.

Promotion of Human Rights Awareness Training

Under our Human Rights Policy, we hold six seminars and eight human rights awareness training courses (primarily rank-specific training courses) each year in order to provide staff with an accurate and profound understanding of the essential nature of human rights, as well as fostering a widespread awareness and culture of respect for human rights. In addition, every three years, we conduct an e-Learning-based training program for the whole workforce.

As globalization of corporations proceeds, we come to face various types of human rights issues including child labor and forced labor. Therefore, we have strengthened our perspective on business and human rights since FY2014 to respect the human rights of each and every stakeholder involved with the corporations and deepen understanding toward working in business with a viewpoint that includes human rights considerations.

Those responsible for hiring periodically participate in training conducted by the Industrial Federation of Human Rights, Tokyo. They use this training to promote activities by comparing the state of affairs at their own company.

(In FY2015, 270 people participated in rank-specific training courses focused on human rights.)

Establishment of a Harassment Consultation Service

We have established an internal consultation service to facilitate a swift response in the event of workplace harassment or a complaint from an employee. The basic principles of this service are protection of the privacy of those concerned and the maintenance of confidentiality. In addition, employees can access EAPs* and whistleblower reporting services via specialist external organizations that we have contracted to provide such services.

Number of consultations with external service (telephone health consultations and telephone or face-to-face counselling)
  FT2013 FT2014 FT2015
Total consultations 309 236 188
Consultations relating to harassment in the above figure 1 0 4

(Note) Figures are for after the commencement of the agreement with external organizations (from 2013 onwards)

  • * EAP (Employee Assistance Program): A program providing mental health support to employees

Iin case any problems arise in the course of our business activities, we have set up forms on our website to enable all types of inquiries from outside the company. If we receive a report, we deal with it as appropriate, together with the relevant division.

Diversity Management

Basic Approach

In the global marketplace, in which the Hitachi High-Tech Group operates, the changes in the business environment surrounding companies have become even severer. It is crucial that we continue to provide creative and pioneering solutions to our customers and society through continuous innovation to succeed in the competition. The Hitachi High-Tech Group respects diverse sensibilities and values and is working to incorporate them as one of our major initiatives to achieve growth. Placing "diversity management" at the core of our management practices is essential to lead us to produce organizational dynamics.

Roadmap and KPIs

Purpose Major Initiatives Activities and Results for FY2015
Promotion of Understanding Disseminate the management’s messages 2 x President’s messages, 5 x Town hall meetings
Diversity presentations Presentations by outside experts with themes of work/life balance and female workplace participation
Diversity management training General manager training : 30 participants, Manager training : 60 participants
Themed workshops Promoting understanding of the LGBT* community
e-learning Working style reform e-learning
Information sharing with labor union and group companies Hold the “Working Style Reform Committee” and the “Hitachi High-Tech Group
Diversity Promotion Committee”
Promotion of Workplace Participation Women’s leadership training Sending to external seminars and networking events
Mentoring trial with officers and female managers
Tele working trial Trial in FY2015 ⇒ Full implementation in FY2016; as of July there were 23 users(childcare and nursing)
  • * LGBT: General term for sexual minorities

Recruiting Diverse Employees

Hitachi High-Tech strives to employ exceptional people, irrespective of their gender or nationality. Of the 62 new employees who joined the Company as regular employees, 35% were women, and 8% were from outside of Japan.

Valuing Diversity among our Personnel

Basic Approach

The Group values diversity among our employees, promoting diversity management and utilizing diversity as a source of competitiveness in our global business expansion. We regard gender, nationality, career background, age, personality, values, and all other external and internal differences as part of a person’s individuality. To ensure that each and every employee can make the most of his or her own abilities, we are actively striving to foster a culture of respect and enhance mechanisms within the Group.

We established a dedicated organization, the Diversity Promotion Group, in 2014, and especially aim for appointing women as officers and achieving a rate of 5% of managerial posts being held by women (doubling the number in 2014) by 2020 for the promotion of active participation of women.

Major efforts for this are as follows:

  • Fostering female leaders through female leadership seminars, a mentor system, etc.
  • Reforming the attitudes of those in management
  • Introducing and expanding systems to facilitate work-life balance, such as the introduction of working from home, as part of an overall reform of working styles

Employment

The Group has 9,902 employees within Japan and overseas as of March 31, 2016. We seek to avoid discrimination on the basis of race, nationality, gender, or disability in our hiring practices and endeavor to create and maintain stable employment.

Number of Employees (Group)

Number of employees and temporary workers ("employees" does not include temporary workers)
  FY2011 FY2012 FY2013 FY2014 FY2015
Non-consolidated employees 4,445 4,351 3,809 3,768 3,711
Non-consolidated temporary workers 446 431 386 403 431
Consolidated employees 10,340 10,436 10,504 10,012 9,902
Consolidated temporary workers 694 705 692 728 730
Composition by employment contract type (non-consolidated)
Fiscal year 2011 2012 2013 2014 2015
Proportion of all employees accounted for by contractors and temporary workers 9.12 9.01 9.20 9.66 10.41

Unit: %

Number of employees leaving by reason (non-consolidated)
Fiscal year 2011 2012 2013 2014 2015
Early retirement 0 0 0 0 0
Voluntary severance 49 118 82 59 58
Involuntary severance 28 0 0 0 0
Relocation 8 40 282 50 57
Other 3 1 0 10 2
Total 88 159 364 119 117

* As of March 31 of each fiscal year
Unit: People

Promoting Employment of People with Disabilities

We approach the employment of people with disabilities from the perspectives of both diversity among our personnel and corporate social responsibility. Acknowledging that satisfying the statutory requirement for the employment of people with disabilities is the absolute minimum level of social responsibility that we should fulfill as a Group, we have gained approval for Hitachi High-Tech Support Corporation to be designated as a special subsidiary company. We are achieving figures in excess of the statutory employment rate, while striving to further expand the scope of duties of employees with intellectual disabilities or psychiatric disorders. In FY2014, we formulated the Hitachi High-Tech Group Medium-term Plan for Employment of People with Disabilities which targets for FY2018 to make efforts to further expand employment of people with disabilities, achieving an employment rate of 2.36% as of the end of March 2016.

We are actively endeavoring to enhance the skills of our employees with disabilities.
We are also engaging in skills development with the aim of participating in the annual National Skills Competition for People with Disabilities (Abilympics).

Ratio of Employees with Disabilities*1
FY2011 FY2012 FY2013 FY2014 FY2015
1.93% 2.02% 2.06% 2.19% 2.36%

*1 Consolidated domestic resultsFigures reported to the Ministry of Health, Welfare and Labour
* As of March 31 of each fiscal year

Employment of Seniors

In response to the Act on Stabilization of Employment of Elderly Persons, we have introduced a system of life planning options that enables employees to open a variety of lifestyles after at the age of 60. This system is becoming firmly established within Hitachi High-Tech. Under the post-60 re-employment system, we are putting in place an environment that enables all seniors to play an active role in the company, making full use of their knowledge and experience.

Employee Diversity-related Data Highlight*1
  Unit FY2011 FY 2012 FY 2013 FY 2014 FY 2015
Non-consolidated employees Person 4,445 4,351 3,809 3,768 3,711
Male Person 3,852 3,762 3,267 3,213 3,161
Female Person 593 589 542 555 550
Foreigner Person 42 35 37 34 32
Average age Age 41 41.3 41.6 42.3 42.5
Years of employment Year 18.3 18.5 18.9 20.1 19.7
Managers Male Person 1,126 1,149 1,024 1,027 1,029
Managers at the level of department chief or above Female Person 15 17 19 25 27
Male Person 217 216 227 189 228
Female Person 2 3 4 5 5
Ratio of women in managerial positions 1.3 1.5 1.8 2.4 2.6
Ratio of employees with disabilities*2 1.93 2.02 2.06 2.19 2.36
New employees hired for regular positions <graduates> Person 59 68 48 53 45
(Women included in above figure) Person 11 11 8 12 12
New employees hired for regular
positions <experienced personnel>
Person 25 5 5 5 17
*1
Individual results for Hitachi High-Tech
*2
Consolidated domestic results

Work-Life Balance

Basic Approach

As structural changes in society resulting from the declining birth rate and the aging of the population, as well as the increasingly diverse nature of people’s lifestyles, we are reforming ways of working, including the prevention of excessively long work hours, and putting in place various leave systems. Thus, we ensure that each and every employee feels motivated and finds satisfaction in their work, as well as enabling them to combine work with caring for childrearing or sick/elderly relatives.

20-20 Project

We began the 20-20 Project in FY2015 to make our working lifestyles highly productive. This project aims to display the abilities of each individual and improve organizational strength by effectively utilizing regular work hours and thinking creatively within each division to come up with well-modulated working styles. The specific goal is to limit average monthly overtime to no more than 20 hours per month and increase annual leave taken to 20 days.

2015 Initiatives

  • Town hall meetings with the president and management
  • Sharing favorable examples through presentations and Internet news
  • Spreading awareness through lectures and e-learning

Action Plan Based on the Act on Advancement of Measures to Support Raising Next-Generation Children


Kurumin certification mark

In March 2015, we completed our third employer action plan under the Act on Advancement of Measures to Support Raising Next-Generation Children. Our first and second action plans focused primarily on enhancing relevant programs, such as the expansion of short-time work schemes and the establishment of a program to subsidize childcare fees. In our third action plan, we made efforts to make work-life balance support programs widely known and change ways of thinking through various training courses and lectures to ensure a more accurate understanding and appropriate utilization of these initiatives.

In response to the completion of our second action plan, we were awarded the Kurumin certification mark, which identifies us as a next-generation company that supports childcare.

Under the fourth action plan which started in FY2015, we are implementing initiatives that aim to change ways of working including reduction of working long hours and promotion of taking annual paid leave.

Enhancing Work-Life Balance Support Programs

To support our employees in achieving a better work-life balance, we are developing and promoting widespread use of programs for employees who need to care for children or sick relatives, taking into account legal reforms as we do so. After the initial trial of the work from home plan from September to December 2015, we fully rolled out the plan in 2016, and 23 people are using it as of July 2016.

Major Work-Life Balance Support Programs
Category Program Name Outline
Working Hours Reduced working hours for parents Employees can choose to work shorter hours until their child graduates from elementary school. The options are as follows:
7 hours, 6.5 hours, 6 hours, 5 hours, 4 hours (Actual daily working hours for full-time staff: 7 hours 45 minutes)
Reduced working hours for those providing nursing care Employees who need to provide nursing care to a sick/elderly family member (including care equivalent to nursing care) can choose to work shorter hours. The options are as follows:
7 hours, 6.5 hours, 6 hours, 5 hours, 4 hours (Actual daily working hours for full-time staff: 7 hours 45 minutes)
Restriction of / exemption from overtime work and late-night work Upon application by an employee bringing up a child who is not yet attending elementary school (under special circumstances, employees whose children have not yet graduated from elementary school are also eligible) or an employee providing nursing care for a family member (including care equivalent to nursing care), we implement the following arrangements (length of time required between not less than one month and not more than one year, no limit on the number of applications):
·         Limiting overtime work to no more than 24 hours/month, up to a maximum of 150 hours/year, or exempting the employee concerned from overtime work
·         Exempting the employee concerned from late-night work
Work from home (new) It is possible for the following employees to work from home using their computer and telephone in order to care for children or provide nursing if they meet certain conditions
・They have children who have not yet graduated from elementary school
・They have blood relatives who are in need of nursing care
・They are a pregnant woman and are in need of commuting relief
Leave of Absence for Family Support Maternity leave Period of 8 weeks (14 weeks for a multiple pregnancy) prior to the expected birth date to 8 weeks after giving birth
Leave of absence for childcare purposes Length of time required, up to a maximum of three years in total until the child finishes his or her first year of elementary school
It can be taken in segments.
Leave of absence for nursing care purposes Length of time required, up to a maximum of one year in total per circumstance giving rise to the need for nursing care
It can be taken in segments.
(includes care equivalent to nursing care)
Sick/injured family care leave 5 days/year
Sick/injured childcare leave 5 days/year per child not yet attending elementary school
Annual short-term nursing leave 5 days/year per person receiving nursing care
Actual Usage of Programs (Company)
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Reduced working hours 72 74 81 85 90 84
Leave of absence for childcare purposes 29 48 38 41 41 38

Unit: People

Work Style Situation-related Data Highlight*1
  Unit FY2011 FY2012 FY2013 FY2014 FY2015
Reduced working hours Person 74 81 85 90 84
Leave of absence for childcare purposes Person 48 38 41 41 38
Rate of return after leave of absence for childcare purposes % 97.9 96.9 96 93 94.7
Leave of absence for nursing care purposes Person1 2 1 4 1
Rate of receiving paid leave % 68.2 61.1 58.3 62.5 65
Hours of overtime (averaged between labor union members) Hour/Month 25.6 27.5 22.8 29.4 27.4
*1
Individual results for Hitachi High-Tech

Human Resource Development

Basic Approach

The Group regards people themselves as one of the assets of a company and we believe that improving the value of each and every individual as a human resource leads directly to sustainable value creation throughout the Group. Based on this view, we have adopted the development of personnel with a global outlook as the main policy in our human resource development initiatives, which encompass all staff.

Management Education Committee

We endeavor to ensure ongoing verification and improvement of our human resource development initiatives via the Management Education Committee, which meets twice a year. Based on the cultivation of personnel with a global outlook, our educational programs are organized into three categories – rank-specific training, sales training, and technical and skills training – and systematically implemented.

Education System

Cultivating Personnel with a Global Outlook

We actively post young employees overseas and have set a goal of ensuring that at least 50% of employees have gained some overseas experience within seven years of joining the company, with a view to cultivating personnel capable of doing business with a global perspective as soon as possible. In 2011, as well as a one-year overseas training program, we launched a short-term overseas posting program for young employees that offered flexibility in the duration and location of the posting. As a result, around 20 people undergo training overseas each year. In addition, we are striving to enhance our efforts to cultivate local staff at our overseas bases, so that they can play an active role in our business. To this end, we are working to promote globally applicable education, such as of basic manager skills training that is consistent worldwide.

Cultivating Skilled Manufacturing Personnel


Competitors gathered at the closing ceremony

Our ability to manufacture high-tech products such as semiconductor testers and analyzers is underpinned by our ceaseless development of cutting-edge technology and the highest-possible level of skill in translating this technology into products. For many years, as part of our proactive endeavors to cultivate technicians, we have taken on the challenge of entering the annual National Skills Competition and have produced many medalists, both at the national and the international level.

At the 53rd National Skills Competition, held in December 2015, a total of nine competitors from our company took part across four skill categories, winning a Fighting Spirit Prize in the lathe category, the milling machine category, and the mechanical drawing category. We are working to develop personnel who are able to display the highest standard of technical skills across a broad range of areas, e.g. entering the mechatronics category for the first time.

Fair Performance Appraisals and Performance-related Pay

Basic Approach

We are striving to ensure the highest possible level of motivation and maximize the potential of each and every employee, and to create an environment that gives our staff greater job satisfaction. To this end, the Group is building and operating a fair and transparent personnel treatment system.

Ongoing Review of our Personnel Treatment System

Our current personnel treatment system was introduced in 2004, following full-scale revisions aimed at promoting a more merit-based system and thorough implementation of performance-related pay. It sought to increase motivation among employees by shifting from the existing seniority-based system to a merit- and performance-based system.

In light of changes both within the company and in wider society since the system’s introduction, we have reviewed our personnel system as a whole, including the treatment of personnel, and partially revised the system in FY2010, with the aim of further motivating young leaders and mid-ranking employees in the workplace. In FY 2015, we introduced a business management and results evaluation system, which focuses on performance. Our personnel treatment system for those in managerial roles has been transitioned from the previous merit basis to a role basis. We will successively transition to the new model at domestic and international Group companies, while giving consideration to the circumstances of each individual company. Thus, we will promote the rebuilding of a personnel treatment system with common concepts throughout the HHT Group and around the globe.

Going forward, we will continue to promote in-depth discussion based on actual challenges in each workplace and make ongoing wide-ranging improvements aimed at creating a personnel system that motivates each and every employee, giving them a sense of job satisfaction.

Fair and Impartial Operation

To ensure the fair and impartial operation of this system, we regularly provide training for those in managerial posts who are responsible for conducting personnel appraisals. In addition, the Labor-Management Expert Committee on the Personnel Treatment System meets annually, providing a forum for regular discussions between labor and management concerning pay and qualifications. As well as carrying out annual wage revisions and confirming qualification ratings, members of this committee engage in a frank exchange of views concerning the personnel treatment system.

Procedure for Resolving Appraisal-related Issues

We have set out a procedure for resolving any issues in the event that an employee queries his or her own appraisal. As well as establishing a three-stage resolution process as part of this procedure, we have issued a declaration that employees who have applied for resolution of an issue will not be disadvantaged and that their privacy will be fully protected in the resolution process, in order to ensure fairness for our employees.

Two-way Dialogue with Employees

Sound Labor-Management Relations

We are engaged in improvements to various policies and the working environment based on good-faith consultation and agreement between labor and management with a basic stance of labor-management cooperation. At the Central Management Council, which is convened twice- yearly, we conduct discussions and exchange opinions on management issues, etc., for the purpose of facilitating communication between labor and management and contributing to the development of both. In countries and regions that recognize labor unions, such as Japan, labor agreements concluded between the company and the labor unions state that we recognize that unions have the right to organize, collectively bargain, and take industrial action.

Survey of Employee Attitudes

Each year, we conduct an attitude survey for employees (the Hitachi Employee Survey). This survey periodically researches employees’ opinions and attitudes with regard to employees’ work and workplace environment etc. as part of our workplace communication initiative. It is one of the company’s initiatives to revitalize personnel and workplaces, and increase motivation. Going forward, we will continue this survey, and continuously work towards the creation of a satisfying and energetic workplace.

Health and Safety Programs

Basic Policy

The Hitachi High-Tech Group is committed to maintaining and improving health and safety management standards, such as the enhancement of health management and prevention of work-related accidents based on the Hitachi Group's health and safety policy, which makes the health and safety of employees a key priority. In addition, we are working to identify risk through regular factory safety inspections and workplace patrols to mitigate the damage from large-scale disasters.

The Hitachi Group Health and Safety Policy (excerpt)

Principle
Health and Safety Comes First.
Policies
In accordance with our mission, "Contribute to society through the development of superior, original technology and products," and as a global corporate group whose business is based on close partnerships with society, the Hitachi Group will endeavor to ensure safe and healthy workplaces under the principle of "Health and Safety Always Comes First" in all of our business activities.

Safety Initiatives

At Hitachi High Technologies, we hold a Group Health and Safety Conference each quarter for the people responsible for the promotion of health and safety in the workplace so that, we can improve health and safety activities and the level of health and safety throughout the Group. The officer responsible for health and safety acts as chair of the conference. If it is determined that there have been any major accidents or that there are notable issues with safety management, the workplace in question will be designated as a priority safety management workplace, and we will ensure that reforms are implemented swiftly, in accordance with the standards related to the priority safety management designation system.

To investigate and deliberate on matters relating to disaster prevention and health management at each workplace, and conduct improvements, the Hitachi High-Technologies health and safety committee actively engages in risk assessments and the implementation of intrinsic safety* in production equipment at our manufacturing sites through a voluntary and structured occupational health and safety management system. In addition, we hold safety presentations at our manufacturing sites and carry out third-party safety diagnosis in an effort to further strengthen our safety management initiatives through employee participation.

  • * Intrinsic safety: The elimination or reduction of any elements and factors that can pose a hazard to safety.

Occurrence of Occupational Accidents

The occupational accident rate at Hitachi High-Technologies is extremely low compared with that of all industries across Japan. In FY2015, 2 accidents accompanied by lost worktime and 10 accidents not accompanied by lost worktime occurred in the Group.
We will continue to provide safety education and implement safety management with the aim of eliminating occupational accidents.

Occupational Accident Rate

  • * cAccident rate calculated as number of occupational deaths and injuries/gross hours worked × 1,000,000

Revitalizing Group-wide Health and Safety Activities

To improve the standard of health and safety activities throughout the Group, we have established the High-Tech Group Health and Safety Coordinators’ Committee. This committee helps to revitalize Group-wide health and safety activities through presentations introducing examples of health and safety initiatives at each Group company and exchanges of views on these, as well as organizing special lectures by guest lecturers from outside the company, to increase members’ knowledge of issues common throughout the Group.

In 2015, a total of 993 people participated in stress check seminars and lectures. There has been increasing the number of personnel with health management qualifications, with an increase of 108 such personnel throughout the Group last year.

Disaster Risk Reduction Activities


First aid course at head office

As with our safety activities, we proactively undertake Group-wide disaster risk reduction activities. In addition to conducting regular evacuation drills, we endeavor to enhance our systems and raise awareness among our employees through initiatives such as courses to train them in the use of AEDs (automated external defibrillators), so that they can act independently in the event of an emergency.


Firefighting drill at our Naka Division

We have also set up in-house fire brigades at each manufacturing base. These conduct regular firefighting drills to ensure that they are prepared for any unforeseen situations.

Occupational Health Activities


Mental health workshop

We are implementing health promotion measures and enhancing health education among our employees. Initiatives in this area include efforts to reduce overtime hours, encourage employees to take advantage of special health check-ups and other medical examinations, and improve awareness of health management through education focused on this subject. In addition, we believe that enhancing mental health care for employees is an important task for the Group. We are developing initiatives throughout the Group, including regular mental health education and stress management seminars aimed at enhancing "line care" (routine support provided by line managers) and self-care, as well as expanding counseling services in partnership with external EAP bodies and offering referrals to specialist physicians.