SUSTAINABILITY
Labor Practices
WORKING ENVIRONMENT

Labor Practices

DMC strives to maintain appropriate labor practices and provide a safe, secure and comfortable working environment to enable all employees to adequately exert their abilities through work.
Human resource data
AS OF DECEMBER 2020

Number of employees (Unit: person)

  • 2018 2019 2020
    Japan Male 77 79 84
    Female 51 58 61
    Subtotal 128 137 145
    Indonesia Male 314 285 260
    Female 369 338 298
    Subtotal 683 623 558
    Total 811 760 703
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Average age (Unit: age)

  • 2018 2019 2020
    Japan Male 40.9 41.7 41.3
    Female 40.4 39.8 38.7
    Subtotal 40.9 40.9 40.2
    Indonesia Male 26.7 28.5 30.5
    Female 25 27 29.4
    Subtotal 25.7 27.4 29.5
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Average number of years of service (Unit: year)

  • 2018 2019 2020
    Japan Male 9.3 10 10.6
    Female 8.5 9 9
    Subtotal 9 9.6 9.9
    Indonesia Male 7.7 7.7 8.4
    Female 6.1 8 7.9
    Subtotal 6.7 7.9 8.6
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Number Hired (non-consolidated)(Unit: person)
  • 2018 2019 2020
    New raduates Male 4 2 5
    Female 3 4 5
    Subtotal 7 6 10
    Mid-career recruits Male 5 3 1
    Female 5 2 0
    Subtotal 10 5 1
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Number of individuals in managerial positions (Unit: person)
  • 2018 2019 2020
    Japan Male 16 17 26
    Female 0 1 1
    Subtotal 16 18 27
    Indonesia Male 33 39 35
    Female 5 7 7
    Subtotal 38 46 42
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  • Ratio of female employees (%)
    2018 2019 2020
    Japan 39.8 42.3 42.1
    Indonesia 54.0 54.3 53.4
  • Turnover rates (%)
    2018 2019 2020
    Japan Male 7.8 5.9
    Female 14.3 4.9
    Subtotal 8.8 5.5
PROMOTING

Promotion of Diversity

Basic Concept

DMC aims to promote diversity by developing a corporate climate that respects and accepts the individuality of each employee. DMC also places a priority on mutual understanding to be a company where all employees, including females, non-Japanese, seniors, and the disabled can work with peace of mind. 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 FY2020, DMC started a new program for labor management, human rights, and harassment targeting employees with leadership potential.

Employment Continuation System (Reemployment System)
  • Reemployment Rate (%)
    2018 2019 2020
    Male 100 100 100
    Female 100 Not applicable 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. 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.

VOICE

A teleworking system has been implemented in response to the opinions of employees wishing to work at home


Yoshie Saito,
Overseas Sales Department

— Would you please tell us about your career at DMC and your current job?

Although I stopped working as a temporary worker when I had my baby, I restarted as a part-timer hired directly by the company, and have become a full-time employee there. From the time I was a temporary worker, I have been engaged in assistance for overseas sales, and supported sales activities for sales agents around the world. I am mainly in charge of Europe and North America.

— How do you feel about the support system to make it easier to continue working while raising children?

Even before the outbreak of COVID-19 in 2019, I thought about working from home. Because my supervisors and the Personnel Affairs Division always work hard to ensure a comfortable work environment and listen to our opinions, I brought the subject up with them, and they approved of the idea. I realize it was tough developing the system from scratch, so I really appreciate their flexibility and kindness in helping to meet my needs.

— What changed after you started working from home?

My work involves contacting people overseas, so my workday often continues into the evening due to the time difference. This means staying at the office late. As the time my child would start elementary school neared, I knew I would not be able to continue working this way. Being able to work from home reduced my stress about staying late at the office by enabling me to be at home with my child while working. Working from home made a big difference; and as my child got used to it, it became even easier. I feel that it’s also nice that my child sees me when I’m working. I think this allows me to set a good example. Working from home has given me many advantages like this.

— What is your goal and what do you expect of DMC regarding the promotion of women’s empowerment?

My goal is to brush up my skills through the acquisition of certifications and deepening my knowledge about my work. I am very satisfied with my work and I am very happy that I can continue to pursue my goals even after I enter a new life stage. I appreciate the support I received from DMC. This is possible because of support from the company, my family, friends and the people around me. I expect that DMC continues to help employees by creating a comfortable work environment that matches their life stage.

Promoting the Employment of Individuals with Disabilities

DMC respects the right of individuals with disabilities to work, and actively recruits from this valuable pool of human resources. The employment rate of individuals with disabilities in 2020 was 0.68% (non-consolidated). We continue working to improve the employment rate of the disabled.

DIVERSITY

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.

Overtime and holiday work are monitored each month by divisions, and we notify individual employees whose actual working hours are close to exceeding the limit to prevent excessive overtime work. The shutdown periods initiated to prevent the spread of COVID-19 in FY2020 naturally affected the average rate of annual paid-holiday use. However, we continue providing an environment in which employees are encouraged to use paid-holidays.

Regarding overtime work, we ensure fair and proper payment in accordance with the Salary Regulations.

Average monthly overtime working hours per employee in FY2020 was 7 hours and 11 minutes, which achieved the FY2020 target (eight hours or less).

Rate of Annual Paid Holiday Use (%)
  • 2018 2019 2020
    Japan Male 65 72.2 48.4
    Female 100 82.9 57.6
    Subtotal 71.5 76.5 52.2
    Indonesia Male 76 73.4 75.6
    Female 77 76.5 77.8
    Subtotal 76.8 75.6 76.9
Average Monthly Overtime Hours (per person: hours)
  • 2019 2020
    Japan Male 7.3 8
    Female 4.6 6.2
    Subtotal 6.2 7.2
    Indonesia Male 9.1 5.3
    Female 8.1 5.7
    Subtotal 8.5 5.6
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Implementation of a Remote Working System

USCO Group flexibly responds to workstyles for the purpose of preventing COVID-19 infection and ensuring safety. Where possible, DMC offices continue implementing flex-time and remote work. Such systems are, however, impossible at factories, where the physical presence of employees is essential for operations.

In addition, regarding the implementation of diverse workstyles after COVID-19, we will fully examine identified issues and points to be improved, 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

DMC has childcare leave, nursing care leave, and childcare time systems to ensure that employees caring for children and family members requiring care can continue working during different life stages.

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 FY2020, two female employees took childcare leave.

HR

Human Resource
Development

Basic Concept

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 Systems & Operations

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 personnel affairs 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.

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 FY2020, three employees acquired QC Level 3 certification.

In FY2018 and FY2019, DMC created manuals for all divisions to standardize and hand down business activities that tend to depend upon individual knowledge and skills. In FY2020, DMC continued improving business activities and revising manuals as needed.

Training for groups at different levels

DMC Group periodically provides training for groups at different levels through seminars common to all USCO Group companies. These include Seminar for Executives, Seminar for Mangers, Seminar for Evaluators, Basic Seminar for Managers, and Global Human Resource Cultivation Seminar for New Employees. DMC held seminars in FY2020, as shown below.

Overview of Group Training at Different Levels (FY2020)
Name of the Training Subjects Description
Seminar for New Managers Employees with leadership potential This seminar was provided to equip participants with basic knowledge for managers. Participants deepened their understanding of the roles of managers, acquired knowledge about labor laws necessary for labor management, and coaching and teaching methods necessary for managers.
Study Meeting for Evaluators Managers This seminar was provided to increase awareness of evaluators and standardize the evaluation standards throughout DMC Group companies.
Leadership Seminar Employees at the level of 4 or higher This seminar was provided to equip participants with leadership skills through group work.
Human Rights and Harassment Seminar Number of employees in managerial positions This seminar was provided to help participants acquire knowledge of human rights and harassment as managers.
Seminar during Shutdown Period All employees This was an online seminar consisting of 75 class sessions on rights, harassment, disaster control, information security, quality management, etc. totaling 5,576 hours.
In-house Training Overview (FY2020)
Name of the Training Subjects Description
Sales Skill Seminar (held twice) Employees engaged in sales This seminar was provided to help participants develop their sales and service skills through roll-playing.
Seminar for Business Mail Rank-and-File Employees This seminar was provided to help participants learn how to write business mail, create a signature, set passwords for attached files and many other skills related to e-mail.
Seminar for prospective employees of the group and employees who have worked six months after joining the company Prospective & new employees with university degrees Seminar for improvement of communication skills & preparing for the 2nd year
Joint Seminar for Employees in their 1st and 2nd Years of Employment Employees in their 1st and 2nd Years of Employment This seminar was provided to help participants improve their communication skills and increase their awareness as experienced employees.
Human Resource Development for Global Business

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 English lessons in Japan and Japanese lessons in Indonesia to promote smooth communication between the Head Office and the Indonesia Factory.

Language Training Overview
Location Description
Head Office (Tokyo Office), Osaka Office, Shirakawa Factory Providing periodic English lessons at each base. The curriculum consists of listening, reading and writing programs for business. Attendance rate was approximately 80% in FY2019.
Indonesia Factory Setting the time to learn Japanese twice a week targeting executive trainees and individuals planning to participate in technical training in Japan. Five employees participated in the training in FY2020. (The seminar was canceled in and after August 2020 due to COVID-19.)
ENSURING

Work Environment
Safety

Basic Concept

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 Systems & Operations

To establish a safety and sanitation management system in accordance with the Industrial Safety Employee Health Promotion and Health Act, DMC facilitates the assignment of Safety and Health Managers, improvement of the safety and health promotion system, the submission of proposals for improving safety and sanitation, education for safety and sanitation, and measures to improve health status. DMC holds monthly Safety and Sanitation Committee meetings to discuss basic measures to prevent risk and health impairment. The company’s industrial physician attends Safety and Sanitation 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.

Approaches to the Prevention of Labor Accidents

The DMC Group safety and sanitation management system strives to prevent labor accidents. We have also started new programs: Gathering slogans for safety and health from employees to increase their awareness of health and sanitation management both at work and home, and to prevent industrial accidents; Holding safety seminars for newly hired employees; Sharing minor incident cases among Safety and Health Committee members; and Holding seminars for risk assessment at work. Risk assessment allows us to identify potential danger or toxicity at work and it helps prevent and reduce those risks. During the 5S safety patrol, we carry out periodical inspections to check dangerous or unsafe sections, and the areas where minor incidents have occurred, and issue a Request for Improvement aiming to address such problems immediately. There were no labor accidents in 2020 (consolidated).

Labor Accident Frequency & Severity Rate (consolidated)
FY2018 FY2019 FY2020
Labor Accident Frequency Rate*1 0.0 0.0 0.0
Labor Accident Severity Rate*2 0.0000 0.0000 0.0000
Industrial Accident Frequency Rate (Electronics) 0.63 0.50 0.52
Industrial Accident Severity Rate (Electronics) 0.07 0.01 0.05
  • *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 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 FY2020 was 100% throughout the DMC Group.

Mental Health

DMC provides 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.