Sustainability
Labor Practices
Basic Approach
The NGK Group strives to create a rich, vibrant and open workplace environment supportive of those taking on challenges where diversity is respected and where various people can play a role. We implement a human resource system which enables every employee to perform at their full potential under fair treatment.
Fair Treatment and Evaluation
Qualification Definitions
In order to ensure that educational background and age are not limiting factors for employees’ careers, NGK maintains a merit-based qualification system for job promotion and grade transfer. By clarifying qualification-specific role differences, we are making it easier for employees to be aware of what is required for higher level qualifications and more readily attempt higher level job duties. This system aims to reward the efforts of employees with the will and ambition to move to a higher grade, as well as to facilitate each employee’s journey along his or her career path.
NGK Qualification Definitions
| Job Grade | Job Grade Definition |
|---|---|
| Key personnel | Key personnel are expected to demonstrate performance in the achievement of organizational results based on upper-level policies and the promotion of reforms for the sustainable growth of businesses and organizations by leading individuals and groups. |
| Group S | Group S employees are human resources who manage at the level of sections/teams or advanced specialist human resources. They are expected to improve the productivity of their section/team and to produce results by connecting and leading their section/team with their supervisors and related departments. Alternatively, they are expected to bear responsibility for important issues and operations as specialists in specific fields. |
| Group M | Group M employees are human resources at the center of practical operations and on-site leaders. They are expected to assist in the smooth promotion of overall team operations and to serve as on-site role models by supporting their supervisors and members with their techniques, skills, knowledge and experience as experts in specialist fields. |
| Group J | Group J employees are human resources who can think and work by themselves as those in charge of practical operations. They can understand the purposes and flow of overall operations and promote and accomplish the daily operations in general they have been assigned with the cooperation of those around them. They are expected to autonomously improve their techniques, skills, knowledge and abilities to play an active role in the workplace. |
Human Resource System for Group S/M/J Employees
NGK’s human resource system for Group S/M/J employees is one which enables all employees, from the young to the experienced, to work with enjoyment and fulfillment. As NGK develops its businesses globally and promotes the creation of new products and businesses, it is essential to motivate young and middle-level employees who will take on future key roles and encourage them to demonstrate their full potential. We are aiming to create an environment that makes these possible.
Key Points of the System
Qualifications
- Developing a mechanism whereby all employees can take on the challenge to qualify for a higher job grade
- Clarifying the definition of each qualification
Evaluation
- Shifting to evaluation that better reflects the efforts and accomplishments of each individual
Retirement at Age 65
- Maintaining the same level of salary after age 60
Key Personnel System
Revision of Key Personnel System
In April 2025, NGK revised its personnel system for key personnel (managerial personnel) to promote full utilization of and autonomous action by various human resources. We encourage personnel to innovate and take on challenges, by treating employees according to their job description, without respect to their age or number of years at the company. And we are moving forward with our transition to a business structure based on fields related to carbon neutrality and digital society, as laid out in the NGK Group Vision.
Overview of New Key Personnel System
| System | Summary |
|---|---|
| Grade rating system |
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| Types of grades |
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| Evaluation system |
|
| Internal job application / scouting system |
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Evaluation System
NGK uses the following evaluation systems when determining individual compensation to maintain fairness in treatment, to thoroughly evaluate each individual’s efforts and achievements each time, and to allow employees to feel their own growth.
| Evaluation System | Content | Ratio of Applicable Employees |
|---|---|---|
| Performance evaluations (group S/M/J Employees) Results evaluations (Key personnel) |
We evaluate the level of achievement and process of targets set at the beginning of the term as results. We evaluate to what extent employees have tackled work other than the targets they have been set. Conducted twice per year. |
100% |
| Conduct evaluations (Key personnel only) |
We evaluate the conduct required of key personnel throughout the year. Conducted once per year. |
100% |
| Role evaluations (group S/M/J employees only) |
We evaluate to what extent employees have fulfilled the roles expected of them (qualification definition) with the elements stipulated for each qualification. | 100% |
| Evaluation interviews | Employees have an interview with their supervisors about the setting of targets at the beginning of the term, improvement in the persuasiveness of the evaluation results with feedback at the end of the term, results in the applicable fiscal year, issues for the following fiscal year, and medium- to long-term career plans. | 100% |
Fair and Equitable Compensation
NGK and the Labor Union have signed an agreement that sets out original in-house minimum wages, which are fixed at a rate above the minimum wages by region and industry stipulated by the Minimum Wage Act. Through this agreement, we strive to improve employees’ working conditions and avoid violation of relevant laws.
We also apply a system that provides the same wages for the same qualifications, irrespective of sex.
Difference in Wages Between Male and Female Workers in FY2024
Communication with Employees
Employee Engagement
Every year, NGK carries out an employee engagement survey. This survey makes visible the vitality level of employees and the organization based on various factors such as job, workplace, and supervisor.
For the survey carried out in FY2024, a total of 5,089 people took part (men: 4,432; women: 657). The results showed an improvement for all items compared to the previous year. In particular, the item of “worthwhileness of work” reached our target score of 3.5 for the first time. We believe this is the result of the various initiatives we carried out, including workshops aimed at invigorating workplaces. In contrast, the items of “taking on challenges” and “diversity” did not reach our targets. We will support employees taking on challenges and further promote the creation of a workplace environment where diverse personnel realize their full potential.
These survey results will be utilized as basic data for use in developing human resource measures focused on creating an organization that is more worker-friendly and offers employees a sense of challenge. The workplace-specific results will also be provided as feedback to supervisors, thereby contributing to improvement in the daily workplace environment.
Scores for Survey on Workplace Vitality
Scores are shown on a scale of 1 to 5 points, and the closer the score is to 5 points, the higher the employee’s level of satisfaction with regards to that question. Our target is 3.5 points or above, and the majority of our employees had a satisfaction level of 4 or above.
Employee turnover Rate
Voluntary Resignation Rate
Labor-Management Initiatives
Freedom of Association
NGK respects workers’ rights, including the right to collective bargaining, and strives to build healthy labor-management relations. As of March 31, 2025, 4,106 employees belonged to the Labor Union.
Labor Union Membership Rate
Protecting the Right to Collective Bargaining
NGK and the Labor Union have signed a labor agreement as equal partners. The agreement specifies that both parties shall respect each other’s rights and take responsibility for the exercising of their own rights.
The two sides regularly hold Labor-Management Advisory Board meetings to exchange information and promote mutual understanding. They also maintain healthy labor-management relations by exchanging opinions on issues such as management policies, financial conditions, and activities of the Labor Union.
Collective bargaining sessions are held in an orderly manner, with both parties striving in good faith to resolve issues peacefully and promptly.
Communication Between Labor and Management
NGK makes an effort to build labor-management relations founded on mutual trust through communication with various consultative bodies, such as the Labor-Management Advisory Board, the Worksite Advisory Board, and the Regular Labor-Management Council.
NGK and the Labor Union hold Labor-Management Advisory Board meetings to talk about business conditions and performance, and Worksite Advisory Board meetings to share issues pertaining to manufacturing, work systems, and workplace environments from each worksite. In addition, labor and management also proactively exchange opinions at Regular Labor-Management Council meetings.
Notification of Transfers due to Business Necessity
NGK stipulates in the labor agreement we have entered into with the NGK Labor Union to determine any transfers due to business necessity upon considering the abilities, health and family circumstances of the employees in question. In addition, we have adopted rules to inform the individuals to be transferred at least three weeks in advance in principle.
In particular, we have stipulated in the labor agreement that we will consult with the union in advance when collectively transferring employees or other matters judged to have a major impact on union activities.
Labor-Management Consultations in FY2024
Regular Labor-Management Council meeting: held twice
Labor-Management Advisory Board meeting: held twice
Other bargaining and consultations
- Consultation on overtime work and work on days off
- Discussions about labor-management in the workplace