1. Labor Standards, Labor Environment and Related Matters
As a party to individual businesses and the industries on which they are built, MC has sincerely taken on the challenge to address societal challenges and achieve sustainable growth together with society through its business activities, while anticipating the needs of the times. Recognizing these distinctive qualities of our business, we consider the diverse and versatile human resources that have supported our growth as a source of value creation, and will continue to actively invest in our human capital. 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 with the aim of “Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce”, part of MC’s Materiality. This is to enable MC’s diverse and versatile group of employees, regardless of gender, nationality and other attributes, to demonstrate their unique abilities to the fullest extent possible.
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＊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.＊ 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.
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.
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) |
1. Labor Standards, Labor Environment and Related Matters
| Officer in Charge | Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, Human Resources, Global Planning & Coordination, IT) |
|---|---|
| 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. |
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.
1. Labor Standards, Labor Environment and Related Matters
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)
| FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | |
|---|---|---|---|---|---|
| Number of new graduates recruited | 130 | 127 | 123 | 120 | 127 |
| Male | 92 (70.77%) |
89 (70.08%) |
88 (71.54%) |
89 (74.17%) |
96 (75.59%) |
| Female | 38 (29.23%) |
38 (29.92%) |
35 (28.46%) |
31 (25.83%) |
31 (24.41%) |
| (The number of general office workers)＊Recruitment of general office workers (formerly called "Business support staff") was postponed for FY2020-2023, so this has been marked with “-”.＊ | 7 | - | - | - | - |
| Number of career hires | 13 | 21 | 16 | 43 | - |
| Male | 12 (92.31%) |
17 (80.95%) |
13 (81.25%) |
39 (90.70%) |
- |
| Female | 1 (7.69%) |
4 (19.04%) |
3 (18.75%) |
4 (9.30%) |
- |
| Career recruitment ratio | 9% | 14% | 12% | 26% | - |
In addition to recruitment activities, MC conducts hands-on employment workshops offering career counseling to university and graduate students.
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 overtime-heavy organizations to develop more efficient labor-saving practices. As a result, in the FY2022, MC came very close to achieving those objectives, with employees on average taking 67% of their paid leave and working 29.9 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’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.
Employees dispatched to MC affiliate companies also receive human rights training (including topics such as prevention of forced labor and child labor, etc.).
1. Labor Standards, Labor Environment and Related Matters
| FY2020 | FY2021 | FY2022 | |
|---|---|---|---|
| Annual average actual working hours＊1Employees at the Head Office and Japanese branches (excluding managers, corporate advisers and contract employees).＊1 | 1984.3 hours | 2002.5 hours | 1993.8 hours |
| Monthly average overtime hours＊1Employees at the Head Office and Japanese branches (excluding secondees from other companies).＊1 | 27.2 hours | 30.4 hours | 29.9 hours |
| Percentage of annual paid leave taken＊2Employees at the Head Office and Japanese branches (excluding secondees from other companies).＊2 | 55% | 60% | 67% |
| Number of violations of the Labor Standards Act＊3Employees at the Head Office and Japanese branches.＊3 | 0 | 3 | 1 |
| Percentage of temporary employees | Approx.7% | Approx.8% | Approx.9％ |
| Average number of temporary employees (male) | 450 people (20 people) | 435 people (19 people) | 474 people (12 people) |
Percentage of retirees for personal reasons (as of the end of March)
| FY2020 | FY2021 | FY2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | Male | Female | Total |
| 1.4% | 1.4% | 1.4% | 1.5% | 1.3% | 1.5% | 1.3% | 1.2% | 1.3% |
Ratio of female employees by employee category (permanent / non-permanent) (as of the end of March)
| FY2020 | FY2021 | FY2022 | |
|---|---|---|---|
| Permanent employee | 26% | 26% | 26% |
| Non-permanent employee | 21% | 22% | 22% |
Ratio of employees by age bracket (as of the end of March)
| FY2020 | FY2021 | FY2022 | |
|---|---|---|---|
| 20s | 16% | 16% | 15% |
| 30s | 27% | 28% | 29% |
| 40s | 22% | 22% | 22% |
| 50s | 33% | 33% | 34% |
| 60s | 1% | 1% | 1% |
2. Employee Relations
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.
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.
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.
2. Employee Relations
| Officer in Charge | Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance Officer, Officer for Emergency Crisis Management Headquarters) |
|---|---|
| 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 3,015 members (representing an 54% participation ratio) as of April 1, 2023. 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. 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.
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.
2. Employee Relations
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 FY2023, three conferences were held on topics including Evaluation/Compensation, Careers, and DE&I. 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.
2. Employee Relations
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.
| FY2015 | Revision of annual income (3 collective bargaining sessions) |
|---|---|
| FY2016 | None |
| FY2017 | Revision of annual income (1 collective bargaining session) |
| FY2018 | Revision of HR System/Remuneration System (4 collective bargaining sessions) |
| FY2019 | None |
| FY2020 | Revision of annual income (3 collective bargaining sessions), revision of staff system (1 collective bargaining session) |
| FY2021 | None |
| FY2022 | Revision of annual income (3 collective bargaining sessions) |
| FY2023 | None |
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.
