Labor Practices

Basic Approach

The NGK Group strives to create a safe and comfortable workplace environment with respect for employee humanity. We implement a human resource system which enables every employee to perform at their full potential under fair treatment.
In the NGK Group Code of Conduct, our relationship with employees is based on the ideas of “Respect for Human Rights” and “Providing a Safe and Enjoyable Work Environment.” These are defined as follows.

Human Resource System for Group S/M/J Employees

In April 2017, NGK revised its human resource system for Group S/M/J employees to enable 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. The revised system aims to create an environment that makes these possible.

Key Points of the Revised System

Qualification Definitions

In order to ensure that educational background and age are not limiting factors for employees’ careers, NGK maintains a merit-based system for job promotion and grade transfer.
Also, because qualification-specific role differences are made clear, employees are aware of what is required for higher level qualifications and can more readily attempt higher level job duties. The aim of this system is to reward the efforts of those 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.

Basic Information Related to Employees

Scope of Application

For reporting in the Social section of this website, scope of application differs on a case-by-case basis and is therefore specified for each article and data report.
However, basic data for employees is shown below.

Number of Employees

1 Includes employees from outside companies who have been temporarily assigned to the NGK Group, but excludes employees from the NGK Group who have been temporarily assigned to outside companies.

2 Excludes employees from NGK Group companies or outside companies who have been temporarily assigned to NGK, but includes employees from NGK who have been temporarily assigned to NGK Group companies or outside companies.

Employee Status

Retention Rate of New Hires After 3 Years

Turnover Rate

Voluntary Resignation Rate

The figures for voluntary resignation rate are calculated from the number of people resigning due to personal circumstances in one year / total number of employees.

Work-Life Balance

Approach to Work-Life Balance

NGK strives to promote a work-life balance and reduce long working hours.
We keep track of social changes, such as changing attitudes toward work as well as legislative amendments, and strive to respond to these changes flexibly and properly by improving systems and revising operations.

Activities for Promoting Work-Life Balance

Initiatives to Shorten Total Hours Worked

Health Management: Initiatives to Shorten Total Hours Worked

Initiatives to Promote Use of Paid Leave

In FY2021 we set the target number of paid leave days to take at 10, and worked to improve the ratio and number of paid leave days taken. Hereafter, we will continually implement initiatives to promote a good work-life balance.

Paid Leave: Number of Days Used, Utilization Rate (NGK Union members; excluding outside employees temporarily assigned to NGK)

Enhancing Systems for Supporting Work-Life Balance

NGK offers flexible systems to help employees maintain a balance between work and family life. To support childcare and nursing care, we are enhancing financial support by providing a babysitter expense subsidy system, and a lump-sum payment system for nursing care support. And in consideration of the working environment, we offer support via a shortened working hour system. Further, we continue to enhance the soft infrastructure NGK has in place to support these employees. For employees seeking to balance their career with childcare, we offer pre-maternity leave interviews, pre-reinstatement interviews during the childcare leave period, career consultations, and other consultation resources. For employees undertaking nursing care, we offer nursing care-related information sessions and distribute nursing care handbooks, as well as facilitate consultation services which make use of outside specialist organizations.

Enhancement of Work-Life Balance Systems

In 2010, NGK made a major revision to its human resource system, and we have since been continuously enhancing our support measures by identifying employees’ needs.
In FY2017, we established an early reinstatement lump-sum system for employees who return to work early from their childcare leave (within 11 months of the start of their childcare leave). We also established a non-registered daycare subsidy system to help subsidize employees who put their children in non-registered daycares. These systems are part of the initiatives we undertake to support employees’ careers after they have returned to work. Also, in addition to childcare and nursing care, we launched a system for flexible work arrangements to help employees who need to attend to a health condition of their own that requires repeated and ongoing treatment, thereby finding a balance between work and medical care.
In FY2018, we investigated how to improve the efficiency and productivity of workplaces by offering employees greater flexibility in terms of work style and environment, so that they can work to their potential while maintaining a healthy work-life balance, regardless of when or where they work. It was in this context that we considered and expanded our use of telecommuting. Then, in FY2020, we formally introduced a telecommuting system to boost productivity and help address the needs of employees with children or other commitments.
In FY2019, we made it possible for male employees to accumulate more vacation days to be used for post-maternity support. We also made it easier to take childcare leave for shorter periods. This has resulted in a more-than-60% increase in male employees taking childcare leave.
In FY2022, we have established a point of contact for consultations relating to work-life balance, and are working to reduce employee concerns and create a positive workplace environment.

System to Support Employees to Balance Work and Childcare at Each Stage

Systems to Support Early Return from Parental Leave

NGK has systems to encourage and support employees who have taken maternity and childcare leave so that they can return to their careers at an early stage.
These systems are aimed at developing workplaces that support female employees in particular, with the expectation of promoting their active participation.

Overview of Childrearing Support Measures and Users

Systems That Exceed Legal Requirements

Systems Operated Independently by NGK

Enhancement of Nursing Care Support System

In line with revisions made in January 2017 to the Child Care and Family Care Leave Act, we made revisions to our own system, such as enabling employees to divide their one-year nursing care leave into three blocks.
Moreover, in April 2022, we relaxed the requirements for employees with a fixed term employment contract to receive this support, so that even employees with less than a year of continuous service can claim nursing care leave. In this way, we are working to enhance our nursing care support system.

Systems to Support Nursing Care

Nursing Care Leave Usage (NGK)

Establishing a Diverse Work-Style Support Website on our Company Intranet

We have a site on diverse work styles on the company intranet to widely announce our measures to support a work-life balance. This site’s user-friendly features include, for example, an online handbook on childcare and nursing care.

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, 2022, 3,912 employees belonged to the Labor Union.

Labor Union Membership Rate(%)

Note: Number of union employees/Number of NGK employees (excluding managers)(Both figures include contract manufacturing employees)

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.

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.

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.