Labor Practices
Human Resource Data
| Scope | Unit | FY2021 | FY2022 | FY2023 | Coverage rate | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | Male | Female | Total | ||||
| Number of employees | Japan | Persons | 87 | 98 | 185 | 105 | 109 | 214 | 165 | 159 | 324 | - |
| Overseas | 449 | 267 | 716 | 450 | 219 | 669 | 373 | 203 | 576 | - | ||
| Group | 536 | 365 | 901 | 555 | 328 | 883 | 538 | 362 | 900 | 100% | ||
| Ratio of female employees | Japan | % | 53.0 | 50.9 | 49.0 | - | ||||||
| Overseas | 37.3 | 32.7 | 35.2 | - | ||||||||
| Group | 40.5 | 37.1 | 40.1 | 100% | ||||||||
| Average number of years of service | Japan | Years | 10.1 | 5.5 | 7.7 | 9.2 | 5.8 | 7.4 | 10.6 | 7.7 | 9.3 | - |
| Overseas | 7.6 | 8.8 | 8.2 | 7.3 | 9.4 | 8.3 | 7.3 | 10.8 | 8.7 | - | ||
| Group | 8.0 | 7.9 | 8.1 | 7.7 | 8.2 | 8.1 | 8.3 | 9.4 | 8.9 | 100% | ||
| Average age | Japan | Ages | 41.3 | 42.1 | 41.8 | 40.9 | 41.9 | 41.4 | 41.0 | 45.5 | 45.1 | - |
| Overseas | 28.2 | 29.8 | 29.0 | 28.1 | 31.1 | 29.2 | 32.4 | 32.6 | 32.5 | - | ||
| Group | 30.3 | 33.1 | 31.6 | 30.5 | 34.7 | 32.2 | 36.3 | 38.0 | 37.0 | 100% | ||
| Number of individuals in managerial positions | Japan | Persons | 26 | 1 | 27 | 24 | 1 | 25 | 34 | 2 | 36 | - |
| Overseas | 22 | 6 | 28 | 30 | 8 | 38 | 29 | 5 | 34 | - | ||
| Group | 48 | 7 | 55 | 54 | 9 | 63 | 63 | 7 | 70 | 100% | ||
| Ratio of females in managerial positions (%) | Japan | % | 3.7 | 4.0 | 5.6 | - | ||||||
| Overseas | 21.4 | 21.1 | 14.7 | - | ||||||||
| Group | 12.7 | 14.3 | 10.0 | 100% | ||||||||
| Number of new graduates hired | Japan | Persons | 1 | 2 | 3 | 2 | 0 | 2 | 1 | 4 | 5 | 35% |
| Number of mid-career hires | Japan | Persons | 1 | 5 | 6 | 11 | 3 | 14 | 10 | 8 | 18 | 35% |
| Turnover rates | Japan | % | 1.3 | 8.2 | 4.3 | 1.9 | 5.5 | 3.7 | 9.7 | 10.1 | 9.9 | 35% |
* The Iwaki factory, which took over the touchscreen manufacturing department from NKK Switches Co., Ltd., has been added to the scope of calculation from 2021. In addition, the number of employees increased in 2023 due to a merger with Seedsware.
Promotion of Diversity
Basic Concept
DMC aims to promote diversity by developing a corporate climate that respects and accepts the individuality of each employee. We place importance on mutual understanding in order to be a company where all employees can play an active role, regardless of age, gender, nationality, disability, religion, or culture. We also believe that such a corporate climate allows us to produce new and flexible ideas that meet diverse customer needs and secure excellent human resources.
Promotion of Women’s Empowerment
DMC promotes women’s empowerment and proactively recruits female employees. We recruit based on standards that apply regardless of gender, and provide support for career formation through our human resource development programs regardless of gender through the assignment of the right person to the right place. In accordance with the Act on Promotion of Women’s Participation and Advancement in the Workplace, we set a target in FY2021 to increase the ratio of female employees who hold executive positions from the current 40% to 60%, the same as male employees. To achieve our target, following the merger in FY2023 and the increase in the number of employees, we implemented organizational restructuring and reviewed the personnel system. Accordingly, training related to the promotion of women’s active participation and advancement in the workplace was temporarily suspended. We continue to provide training for human resource development, including training for managers and supervisors, regardless of gender. As of the end of December 2023, the ratio of those in executive positions* was 73.3% male (47.9% the previous year) and 47.7% female (37.1% the previous year). * Positions above leadership roles (including managerial positions)
Employment Continuation System (Reemployment System)
-
Reemployment Rate
FY2021 FY2022 FY2023 Male 100 100 100 Female 100 100 - -
DMC has a reemployment system that allows employees with accumulated experience and knowledge to exert their abilities after retirement. Retiring employees who satisfy the requirements and express a desire to do so are eligible to continue working up to the age of 65. The reemployment rate in FY2023 was 100% (coverage rate 24%). Losing senior employees with accumulated knowledge and experience due to retirement is a significant loss for DMC, a company whose business requires advanced skill to maintain its competitiveness. DMC fully utilizes senior employees as important human resources capable of educating and training younger generations to improve the company’s capability in the engineering business.
Promoting the Employment of Individuals with Disabilities
-
Employment Rate of Individuals with Disabilities
FY2021 FY2022 FY2023 1.08 0.93 0.96 -
DMC respects the right of individuals with disabilities to work, and actively recruits from this valuable pool of human resources. As of the end of December 2023, the employment rate for people with disabilities was 0.96% (coverage rate 35.1%). We will continue our efforts to improve this employment rate.
Policy on Minimum Wage and Living Wage
DMC’s basic policy is to comply with minimum wage regulations in each country and pay wages in excess of the minimum wage.
Work-life Balance
Work-life Balance
DMC improves in-house systems to allow all employees to choose their own way of working in an environment that ensures a good work-life balance according to family situation. DMC also works to increase the productivity and satisfaction of employees through work-style reform.
Approaches to Appropriate Working Hours
DMC ensures appropriate working hours for employees and prevents overwork in accordance with the Rules of Employment specifying appropriate working hours, overtime and holiday work, and the Labor-Management Agreement.
With regard to overtime and holiday work, an online attendance management system has been used since July 2022 to enable efficient understanding of working hours and to ensure employees’ monthly working hours are monitored. We notify individual employees whose actual working hours are close to exceeding the limit to prevent excessive overtime work.
And regarding overtime work, we ensure fair and proper payment in accordance with the Salary Regulations.
-
Japan
- Average monthly overtime working hours per employee in FY2023 was 8.6 hours, which did not achieved the FY2023 target of a domestic average of 8 hours or less per month.
-
Overseas
- In consideration of the health of employees, the Indonesia Factory has set a daily overtime limit of no more than 3 hours with data managed by division on a daily basis. At the end of each workday, the head of each division checks to ensure that the overtime limit has not been exceeded. The rate of paid holiday use was low in FY2021 due to the rapid increase in orders, but the rate returned to the same level as before from FY2022.
-
Rate of Annual Paid Holiday Use
FY2021 FY2022 FY2023 Japan Male 48.0 70.1 85.5 Female 62.2 98.6 122.8 Total 53 85.0 103.1 Overseas Male 86.2 83.3 85.3 Female 81.5 91.8 92.5 Total 89.2 87.6 88.9 -
Average Monthly Overtime Hours (per person)
FY2022 FY2023 Japan Male 11.2 20.0 Female 6.0 4.9 Total 8.16 8.61 Overseas Male 8,8 4.9 Female 20.2 7.5 Total 13.4 5.9 -
Total Hours Worked
FY2022 FY2023 Japan - 522,325 Overseas - 1,275,080
Implementation of a Remote Working System
The USCO Group took flexible measures regarding workstyles for the purpose of preventing COVID-19 infection and ensuring safety. Now that the COVID-19 situation has been contained, however, the provisional remote work system conducted company-wide has been temporarily discontinued. Even though the threat of COVID-19 has come to an end, however, the system continues to see partial application based on work situations in part because it is beneficial in terms of the perspective of considering the introduction of diverse workstyles.
Going forward, we will fully examine issues and points of improvement identified through the system’s ongoing operation, and discuss the rules, scope, application, and approval methods, as well as the appropriateness of full-scale implementation.
Support for Child Rearing and Nursing Care
The DMC Group has childcare/nursing care leave, and hourly childcare leave systems in place at Group companies in Japan to ensure that employees caring for children and family members requiring care can continue to work during different life stages. In response to the revision of the Child and Family Care Leaves Act, we have started implementing systems within the company, including the availability to take hourly leave to care for children, paid leave, or family care leave, as well as a postpartum paternity leave (childcare leave at time of birth) system.
We believe that helping employees to continue working leads to increased corporate value through the retention of competent individuals with valuable experience. Therefore, division managers have meetings with employees who are taking care of children or family members requiring nursing care to better understand the employees’ situations and promote the use of support systems. In FY2023, one male and two females employee took childcare leave.
Employee Satisfaction Surveys
The Indonesia Factory conducts an annual employee satisfaction survey in an effort to improve the working environment. All employees, including temporary employees, are asked to respond to the survey in the form of a questionnaire in five categories: functions of the general affairs and human resource divisions, management policies and strategies of the company’s management team, the state and operation of the company organization, leadership, and the work environment. The results are fed back to all employees, and KPIs are established for items that receive poor evaluations in order to make improvements while implementing the PDCA cycle. In addition, to enhance communication with employees at the Indonesia Factory, a monthly breakfast meeting is held (with about 120 participants per meeting) to share information with management.
Human Resource Development
DMC believes in individual potential and works on the improvement of in-house education systems aiming to help employees exercise their abilities and improve themselves.
Management System & Operation
USCO Group sets the goal of contributing to society through the persistent growth of companies keeping in mind the hopes, dreams and happiness of our employees and their families.
To cultivate the spirit required to realize this goal and improve the capabilities and careers of employees, DMC continues its development of a wide range of systems and tools to cultivate human resources that support its business activities.
In addition to our annual education and training plans for individual employees, we have also established a framework that allows individual managers to monitor the actual state of education and training as well as the effectiveness of their employees. The eligibility of fulltime employees for promotions and pay raises is evaluated on an annual basis by both the Human Resource Division and their respective division managers.
In addition, we also conduct company information sessions and school visits to secure human resources specialized in engineering that will play important roles in the future of the DMC Group. At our Indonesia Factory, we have also formulated our own annual plan and are focusing on human resource development based on business and regional characteristics.
Support to Help Employees Acquire Specialized Knowledge
The production of DMC touchscreens requires advanced knowledge and skills. To continue providing high-quality products, we ensure support that helps employees to acquire certifications specified by laws and regulations.
In accordance with the integration with Seedsware in 2023, we are reviewing our regulations, which were insufficient, to standardize our operations. In addition, we plan to gradually migrate to a document management system for the Device Business, which was in the process of being standardized.
Training for Groups at Different Levels
-
Scope Average Training Hours per Person Japan 4.5 Overseas 6.1 Group 5.5 -
The Group regularly conducts group training by level with the same content as the USCO Group, either jointly or separately. Training includes the Seminar for Executives, Seminar for Managers and Supervisors, Seminar for Evaluators, Basic Seminar for Managers, and Global Human Resource Cultivation Seminar for New Employees. In addition, by including candidates for managerial positions (assistant managers) for the next term in the Seminar for Managers and Supervisors, which was previously targeted at managers (section managers and above), we are working to develop excellent human resources by fostering awareness at an early stage. In FY2023, the following training was conducted at DMC (non-consolidated) and the Indonesia Factory.
| Training Category | Name of the Training | Scope | Training Topics | |
|---|---|---|---|---|
| Level-based | Global Human Resource Cultivation Seminar for New Employees | Japan | New employees | Training for new graduates and new employees, focusing on the mindset and manners as working members of society |
| New Employee Follow-up Training | New employees | Follow-up training for new employees after joining, conducted in summer and winter | ||
| Kick-off Training for Younger Employees | Young employees up to fifth year after joining company as new graduate hire | Kick-off training before young person training below, sharing purpose and goals of training | ||
| Young Person Training | Young employees up to fifth year after joining company as new graduate hire | Teamwork and leadership that give both individuals and teams a sense of accomplishment | ||
| Exchange Meeting for Women’s Empowerment | All candidates for executive positions and above | Exchange views based on questionnaire regarding women’s empowerment to get ideas for solving future issues | ||
| Next Generation Training | All candidates for managerial positions and above | Fundamentals of leadership, accounting, management, and strategy frameworks based on THE TEAM | ||
| Management training | Time Management | Overseas | Section Head, Unit Head, Worker | How to make the most of your time by prioritizing work |
| Seven Habits | Section Head, Unit Head, Worker | Understanding the seven habits of highly-effective people (an approach to increasing effectiveness based on the principles of human growth from a state of dependence to independence, and finally to interdependence) | ||
| Effective Communication | Section Head, Unit Head | Understanding effective communication | ||
| Coaching & Counselling | Section Head, Unit Head | Understanding what coaching and counselling is | ||
| Leadership | Section Head, Unit Head | Acquiring leadership skills | ||
Human Resource Development for Global Businesss
-
Language Training Overview
Location Description Indonesia Factory For those planning to do technical intern training in Japan (7 trainees in FY2023), 8 months of Japanese language training is provided before the intern training, followed by a minimum of 2 hours of Japanese language training per week after arriving in Japan -
DMC enhances human resources through a system that allows employees to experience business outside Japan, a practical skills training system at a factory in Japan for Indonesia Factory employees, and a system that dispatches Japanese engineers to provide training to employees at the Indonesia Factory. DMC also holds events at the Indonesia Factory to promote cross-cultural communication. These approaches are designed to develop a corporate climate that allows all employees to exchange opinions about quality improvement, etc. with the goal of manufacturing products with consistent quality based on the same standards in both Japan and Indonesia.
DMC also established a language training system that provides Japanese lessons in Indonesia to promote smooth communication between the Head Office and the Indonesia Factory. In FY2023, Japanese language training was conducted once a week by an outside instructor to further enhance communication between engineering divisions.
Work Environment Safety
Based on the idea that human resources are treasures for the company, DMC strives to ensure a work climate that prioritizes the safety and health of employees to create a work environment in which all the employees can fulfill their potential and find satisfaction.
Management System & Operation
To establish a health and safety management system at our domestic bases in accordance with the Industrial Safety and Health Act, DMC facilitates the assignment of Health and Safety Managers, improvement of the health and safety promotion system, the submission of proposals for improving health and safety, education for health and safety, and measures to improve health status. DMC holds monthly Health and Safety Committee meetings to discuss basic measures to prevent risk and health impairment. The company’s industrial physician attends Health and Safety Committee meetings to provide advice and instruction on improvement of the working environment and employee health, and conducts inspections at each office. In the event that the state of operations and sanitation presents a risk to health, the industrial physician has the authority to immediately take the necessary measures to correct insufficiencies. The Indonesia Factory has established a Safety Management Committee to ensure safety and hygiene for all employees working at the plant. Operations personnel also prepare safety technical reports and report to their superiors every three months. With the revision of the Industrial Safety and Health Act regarding the handling of chemical substances in April 2024, we are determining our response while holding study sessions, having employees attend outside seminars as necessary, and are taking appropriate measures.
Approaches to the Prevention of Labor Accidents
The DMC Group health and safety management system strives to prevent labor accidents. Continuing from last year, we have been soliciting slogans for health and safety, and have been conducting safety training for newly hired employees. Each month, members of the Health and Safety Committee share cases of “near-misses” that did not actually result in a labor accident, and conduct regular risk assessments at their workplaces. This initiative allows us to identify potential dangers and harms in the workplace, and helps us prevent and reduce those risks. As a part of 5S safety patrols, we carry out periodic inspections to check dangerous or unsafe sections, and the areas where near-misses have occurred in the past. Requests for Improvement are also issued with the aim of addressing any problems immediately.
In addition, the President and managers conduct regular patrols of manufacturing sites in the Shirakawa Factory and in the Indonesia Factory to raise the safety awareness of employees working on site. There were no labor accidents in FY2023 (consolidated). We have prepared a manual in case of an external leakage of the acid and alkaline solvents used in the etching process prior to their neutralization, and conduct emergency response drills once a year.
| Scope | Unit | FY2021 | FY2022 | FY2023 | Coverage rate | |
|---|---|---|---|---|---|---|
| Labor Accident Frequency Rate*1 | Group | - | 0.0 | 2.27 | 1.67 | 100% |
| Labor Accident Severity Rate*2 | - | 0 | 0.01 | 0 | ||
| Number of Labor Accidents | Accidents | - | - | 3 | ||
| Number of Workdays Lost | Days | - | - | 2 |
- *1 Labor Accident Frequency Rate: Number of deaths and injuries in labor accidents per 1 million actual working hours. It shows the frequency of labor accidents.
- *2 Labor Accident Severity Rate: Number of workdays lost per 1,000 actual working hours. It shows the severity of accidents.
Employee Health Promotion
DMC places a priority on creating a work environment that allows individual employees to maintain physical and psychological health to ensure the ability to continue working with vigor and satisfaction. We conduct annual health checks once a year (twice a year for factory employees) and have a consultation system for the employees diagnosed with health problems as well as the face-to-face checks and advice given by our industrial physicians. The health check rate in FY2022 was 100% throughout the DMC Group. In addition, to create a comfortable working environment, the Indonesia Factory has been conducting a greening campaign on its premises, planting approximately 200 flowering plants.
Mental Health
In Japan, we provide employee stress checks specified by the Industrial Safety and Health Act. We assess the stress level of individual employees, a physician provides guidance, and DMC takes measures for better employment to ensure the mental health of all employees. At the Indonesia Factory, an in-house clinic serves as the primary point of contact for mental health.