St

Social

Labor Practices

Policy

Basic Approach to Human Resources

Human resources are MC’s greatest asset. The MC Group has a workforce of approximately 83,000 employees worldwide. In response to the further diversification and globalization of its businesses, the MC Group is working to develop human resources and support their success on a Group-wide and global basis. This is to create fulfilling and lively workplaces where MC’s diverse group of employees, regardless of gender, nationality and other attributes, are able to demonstrate their unique abilities to the fullest extent possible.

Policy on Labor Practices
(1) MC’s Policy on Labor Practices

MC believes that consideration for human rights is essential in the course of undertaking various businesses worldwide. Based on this belief, MC’s Code of Conduct stipulates that MC will respect human rights and will not engage in any form of discrimination or harassment. With regard to labor practices, MC stipulates the International Labour Standards of the International Labour Organization (ILO) as the relevant regulations underpinning the compliance requirements detailed in the Code of Conduct. Furthermore, MC adheres to the legal minimum wage and has adopted a uniform compensation structure for employees of different genders with the same qualifications and same level of professional duties.

Reference:Basic Approach on Human Rights

* ILO International Labour Standards
The International Labour Organization (ILO) was founded in 1919 on the basic principle that universal and lasting peace can be established only if it is based on social justice. Since its establishment, one of the most important functions of the ILO has been the formulation of international labor standards through Conventions and Recommendations. The ILO has a tripartite structure with workers and employers participating as equal partners with governments. Conventions and Recommendations are adopted at the International Labour Conference of the ILO and ratifying States commit to observing them. The ratifying States also use Recommendations to guide their national policies, lawmaking and actions. Since its founding, the ILO has adopted Conventions and Recommendations that cover nearly every issue affecting the working world. The ILO has established four fields and eight conventions as fundamental labor standards (see table below). MC endorses all of these fields and conventions, and makes specific reference to compliance with them in the Mitsubishi Corporation Code of Conduct.

(2) Participation in the UN Global Compact

MC joined the UN Global Compact in 2010, declaring our commitment to the ten universal principles in four fields: human rights, labor, environment and anti-corruption. Guided also by the spirit of the Three Corporate Principles, we are promoting initiatives in each of these four areas.

Reference:Support for the UN Global Compact

The Four Fields and Eight Conventions Constituting Fundamental Labor Standards

Freedom of association and the effective recognition of the right to collective bargaining Convention concerning Freedom of Association and Protection of the Right to Organise (No. 87)
Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively (No. 98)
Elimination of all forms of forced or compulsory labor Convention concerning Forced or Compulsory Labour (No. 29)
Convention concerning the Abolition of Forced Labour (No. 105)
Effective abolition of child labor Convention concerning Minimum Age for Admission to Employment (No. 138)
Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (No. 182)
Elimination of discrimination Convention concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (No. 100)
Convention concerning Discrimination in Respect of Employment and Occupation (No. 111)
サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E), 人事部 人事組織チーム(PJ-P)

Structure

Officer in Charge Akira Murakoshi (Member of the Board, Executive Vice President, Corporate Functional Officer, CDO, CAO, Corporate Communications, Corporate Sustainability & CSR)
Deliberative Body
(A subcommittee under the Executive Committee, a management decisionmaking body)
Human Resources Development (HRD) Committee
Important matters related to labor practices deliberated by the committees are formally approved by the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards.
Department in Charge Global Human Resources Dept.
Risk Management

When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which considers not only economic aspects, but ESG factors as well, including labor relations, labor management and labor rights. Besides screening new investment and exit proposals, MC also strives to make improvements to existing business investments by monitoring their management practices.

サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E), 人事部 人事組織チーム(PJ-P)

Initiatives

(1)Conducting Fair Recruitment Activities and Providing Job Opportunities

MC’s greatest asset is its human resources, and MC conducts activities to hire new graduates and mid-career employees every year. Our latest recruitment history is as follows. Based on recent circumstances, MC is also utilizing online hiring practices to conduct extensive screening of university and graduate students from both Japan and abroad. In addition, MC carries out interviewer training, including by external experts, each year in order to ensure appropriate screening practices.

Recruitment history (separate)

  2018.3 results 2019.3 results 2020.3 results 2021.3 results as of 2021.7
Number of new graduates recruited 179 171 130 127 123
Male 122
(68.16%)
109
(63.74%)
92
(70.77%)
89
(70.08%)
88
(71.54%)
Female 57
(31.84%)
62
(36.26%)
38
(29.23%)
38
(29.92%)
35
(28.46%)
(The number of general office workers) 20 17 7 -
Number of career hires 6 8 13 21 -
Male 4
(66.67%)
8
(100.00%)
12
(92.31%)
17
(80.95%)
-
Female 2
(33.33%)
0
(0.00%)
1
(7.69%)
4
(19.04%)
-
Career recruitment ratio 3% 4% 9% 14% -

* Recruitment of general office workers (formerly called as "Business support staff") was postponed for the fiscal year ended March 2021, March 2022, so this has been marked with “-”.

In addition to recruitment activities, MC conducts hands-on employment workshops offering career counseling to university and graduate students. In addition, although not directly offering employment opportunities, MC provides scholarships through the Mitsubishi Corporation Disaster Relief Foundation, the Mitsubishi Corporation International Scholarship for Studies in Japan, and the Tobitate! (Leap for Tomorrow) Study Abroad Initiative as a way of providing educational opportunities that can lead to employment.

MC SIM事務局, 人事部 人事組織チーム(PJ-P)

(2) New Work Styles Befitting MC

We are making determined attempts to pursue new work styles which allow us to enhance work productivity and efficiency while delivering high results and performance. The initiative aims to ensure each organization and individual autonomously practices work styles that best suit respective needs.

While taking into consideration the uniqueness of each organizational and individual initiative due to diversified business environments, industries and other factors they face, we aim to achieve an average annual paid leave utilization rate of 70% or more by systematically encouraging personnel throughout MC to take their annual paid leave. In addition, we formulate and implement individual improvement measures that require overtimeheavy organizations to develop more efficient labor-saving practices. As a result, in the fiscal year ended March 2020, MC came very close to achieving those objectives, with employees on average taking 67% of their paid leave and working 25.1 hours of overtime per month on a non-consolidated basis.

Our efforts extend to a work environment that enables diverse employees to thrive professionally while fostering an organizational culture in which performance is evaluated fairly on the basis of results.

MC SIM事務局, 人事部 人事組織チーム(PJ-P)

(3) Respect for Human Rights

MC’s Corporate Standards of Conduct emphasize respect for human rights, while the Code of Conduct and Social Charter stipulate that MC will respect human rights, not engage in any form of discrimination or harassment, not engage in discrimination on the basis of race, ethnicity, creed, religion, gender, gender identity, sexual orientation, national or regional origin, age, physical or mental impairments, illness or any other grounds, and respect the cultures, customs, and languages of other countries and regions.

 MC has established a Basic Policy on Preventing Harassment, which is disseminated widely throughout MC. ‘Harassment’ is defined in the Basic Policy as encompassing sexual harassment and “power harassment,” as well as maternity harassment (disadvantageous treatment related to pregnancy, childbirth, childcare leave, family care leave and so on). It also states that harassment encompasses verbal or physical conduct of a sexual nature, regardless of sexual orientation or gender identity such as LGBT.
Moreover, MC has established human rights help desks internally and outside MC. The help desks operate around the clock, providing consultations via e-mail, telephone, in person or by other means.

  • MC conducts human rights training for new employees, an annual e-learning course for all employees.
  • MC also conducts lectures that focus on the issue of harassment at times including when new general managers or team leaders are appointed.
  • In 2020, as efforts to prevent "power harassment", MC starts a e-learning seminar ”Creating a workplace without harassment” for all employees.

MC takes additional steps to ensure that its consolidated operations are also aware of its human rights standards. For example, employees who are dispatched to MC affiliate companies also receive human rights training (including topics such as prevention of forced labor and child labor, etc.).

人事部 人事組織チーム(PJ-P)

Relevant Data

  2019.3 2020.3 2021.3
Annual average actual working hours*1 1947.7 hours 1915.6 hours 1984.3 hours
Monthly average overtime hours*1 25.7 hours 25.1 hours 27.2 hours
Percentage of annual paid leave taken*2 67% 67% 55%
Number of violations of the Labor Standards Act*3 0 0 0
Percentage of temporary employees Approx.8% Approx.8% Approx.7%
Average number of temporary employees (male) 500 people(21 people) 486 people (21 people) 450 people (20 people)
  1. *1 Employees at the Head Office and Japanese branches (excluding managers, corporate advisers and contract employees).
  2. *2 Employees at the Head Office and Japanese branches (excluding secondees from other companies).
  3. *3 Employees at the Head Office and Japanese branches.

Percentage of retirees for personal reasons (as of the end of March)

2019.3 2020.3 2021.3
Male Female Total Male Female Total Male Female Total
1.0% 1.9% 1.3% 0.9% 1.7% 1.1% 1.4% 1.4% 1.4%

Ratio of female employees by employee category (permanent / non-permanent) (as of the end of March)

  2019.3 2020.3 2021.3
Permanent employee 26% 26% 26%
Non-permanent employee 16% 17% 21%

Ratio of employees by age bracket (as of the end of March)

  2019.3 2020.3 2021.3
20s 19% 17% 16%
30s 24% 25% 27%
40s 25% 24% 22%
50s 31% 32% 33%
60s 2% 1% 1%

Reference:About other various personnel data

人事部 人事組織チーム(PJ-P)

Policy (Freedom of Association and Collective Bargaining)

Basic Approach

MC is engaged in various forms of dialogue with the MC Staff Union at MC-wide level and individual group level. This dialogue is undertaken to reflect in management the opinions and awareness of issues of MC staff who are involved in operations on the ground. Through this process, MC seeks to enhance the performance of each employee whilst enhancing the business performance of MC and fulfilling its public mission to create a more positive work environment. The results of this dialogue are taken into consideration by MC in the course of formulating and implementing various policies.

Policy on Freedom of Association and Collective Bargaining

MC has always respected the freedom of association and the right to collective bargaining recognized by the Constitution and various laws and regulations of Japan. MC has entered into a union shop agreement with the Mitsubishi Corporation Staff Union (“MC Staff Union”), which was formed in 1970. Based on the agreement, all eligible employees are required to join the union, except for those qualified for management-level positions and those deemed to be non-union members based on individual agreements, taking into account the characteristics of their duties and other conditions. Guided by the policy of respecting the freedom of association and right to collective bargaining, MC’s operating companies also comply with and respect the laws and regulations and labor practices of their host countries.

Collective Bargaining

MC has established conditions related to collective bargaining between MC and the MC Staff Union, beginning with labor conditions, as well as related operational procedures. Where necessary, MC has a process in place for both sides to reach agreements by increasing their understanding of the issues through discussions undertaken in good faith. In recent years, MC has engaged in collective bargaining between MC and the MC Staff Union in the process of reviewing compensation and personnel systems and revising annual income.

MC SIM事務局, 人事部 人事組織チーム(PJ-P)

Structure

Officer in Charge Akira Murakoshi (Member of the Board, Executive Vice President, Corporate Functional Officer, CDO, CAO, Corporate Communications, Corporate Sustainability & CSR)
Deliberative Body
(A subcommittee under the Executive Committee, a management decisionmaking body)
Human Resources Development (HRD) Committee
Important matters related to labor practices deliberated by the committees are formally approved by the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards.
Department in Charge Global Human Resources Dept.

The MC Staff Union had 3,090 members as of March 31, 2021. All eligible employees join the MC Staff Union, except for those considered as non-union members based on agreements between the MC Staff Union and MC (including those qualified for management-level positions and those deemed to be non-union members in keeping with the characteristics of their duties based on individual agreements). The MC Staff Union is led by an executive chairman elected from among the union members for a term of one year. The MC Staff Union and MC share the following basic philosophy: “Recognizing the public mission of companies, both the workforce and management will endeavor in earnest to achieve the sound development of MC and to improve the economic and cultural standing of union members.” Guided by this philosophy, the MC Staff Union carries out a variety of initiatives.

Risk Management

When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which considers not only economic aspects, but ESG factors as well, including labor relations and labor management. Besides screening new investment and exit proposals, MC also strives to make improvements to existing business investments by monitoring their management practices.

MC SIM事務局, サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E), 人事部 人事組織チーム(PJ-P)

Initiatives

The MC Staff Union and MC hold labor management meetings and conferences based on the “Basic Agreement between MC and the Union” concluded by both parties, and conduct proposals, status reports and discussions concerning the mutual recognition of issues. These meetings and discussions aid in ensuring proper business management by reflecting the opinions of staff involved in daily duties at the corporate level and the level of each organization.

(1) Labor Management Meetings
The aims of these meetings are to facilitate communication on various matters of mutual interest between the MC Staff Union and MC through the exchange of views, to reflect the union members’ broad range of opinions aimed at stimulating better management policies/ business performance, and to create a more positive workplace. Numerous labor management meetings are held at the levels of each office, business department, division and business group. Not only are the matters discussed in the meetings put to effective use in the management of each organization, they are also placed on the reporting and discussion agenda of Company-wide labor management meetings held once a year, including meetings with the President and CEO, meetings with the Corporate Functional Officer for Human Resources, meetings to discuss yearlong business performance, and meetings to discuss interim business performance.
(2) Conferences
Conferences are held to facilitate communication between the workforce and management on specific matters through the exchange of views and to reflect the union members’ broad range of views on energizing MC through various management policies.
In the year ended March 2021, three conferences were held on topics including HR Systems / Careers, Work Styles and Digital Technology. The MC Staff Union presented reports and proposals to the relevant internal departments based on questionnaires and discussions held within the union, and certain proposals have been implemented by MC.
サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E), 人事部 人事組織チーム(PJ-P)

Performance

Agreement on Collective Bargaining

Under the Basic Agreement between MC and the Union entered into by the two parties, collective bargaining covers (1) matters concerning work conditions and (2) other matters for which collective bargaining is deemed necessary by the MC Staff Union and MC. Accordingly, MC and the MC Staff Union have undertaken collective bargaining on the matters described below.

Year ended March 2016 Revision of annual income (3 collective bargaining sessions)
Year ended March 2017 None
Year ended March 2018 Revision of annual income (1 collective bargaining session)
Year ended March 2019 Revision of HR System/Remuneration System (4 collective bargaining sessions)
Year ended March 2020 None
Year ended March 2021
(through the end of September)
Revision of annual income (3 collective bargaining sessions), revision of staff system (1 collective bargaining session)

In addition, matters deemed to be collective bargaining agreements have been established based on the Basic Agreement between MC and Union and individual labor management agreements. These collective bargaining agreements cover all employees of MC.

MC SIM事務局, 人事部 人事組織チーム(PJ-P)