Achieve a Vibrant Workplace Atmosphere

Work-life balance and promotion of workstyle reform

With the objectives of "improvement in white-collars' productivity," "promotion of work-life balance," and "control of long working hours," the Company undertook the Kawasaki Workstyle Innovation Activity (K-Win activities for short) since fiscal 2017 as promotion of workstyle reform.
This Activity is pursued in coordination of three reforms: "business reform," "organization climate reform," and "system reform" aimed to realize a highly productive workplace where employees can fully demonstrate their abilities in a creative manner while balancing work life and family life.

Encouraging Employees to Take Annual Paid Vacation

Kawasaki encourages employees to use their annual paid vacation time to refresh mind and body and find a better balance between work and private life.
One way to do this, is introduced through the “Yuyu Renkyu” system and the “anniversary vacation” system. Under these systems, employees decide at the beginning of the fiscal year on a date for consecutive days of vacation, which they are then obliged to take when the time comes. The “Yuyu Renkyu” system allows for two consecutive days of vacation. When this is added to the “anniversary vacation,” each employee receives three days of vacation a year planned in advance.
In addition, according to the labor-management agreement, company set the dates to take three days paid vacation all together in every August, and make nine days holiday by combining the company holidays.

Number of Days of Annual Paid Vacation Taken (22 days of Annual Entitlement) and Total Annual Hours of Work (nonconsolidated)

FY2013 FY2014 FY2015 FY2016 FY2017
Paid vacation days 15.4 15.3 14.9 15.0 15.2
Total annual hours of work 2,037 2,050 2,078 2,070 2,075
Annual overtime hours 272.2 283.8 303.4 310.0 307.2
Paid vacation usage rate 70.0% 69.5% 67.7% 68.2% 69.0%

Overtime Ban Once a Week

By agreement between labor and management, Kawasaki introduced an overtime ban in fiscal 2007 to operate in principle once a week.
Mandating a day when staff go home on time improves the work routine and contributes to promoting work-life balance.

Communication between Management and Employees

Kawasaki has concluded a labor agreement with its union—the KAWASAKI HEAVY INDUSTIRES WORKERS UNION—and promotes active opinion exchange through such conduits as a joint management council, where executives explain management policy, financial status, and other key issues to labor representatives (at least twice a year on a corporate level and at least twice a year on a business segment level); a safety and health council, where basic policy on occupational safety and health is presented (at least once a year); a regional safety and health council, where safeguards against hazards and health dangers facing employees are discussed (at least once a month); and a corporate environmental protection committee, where corporate steps to protect the environment are described (once a year).
The labor agreement recognizes the right to engage in collective bargaining, and the Company will notify the union two days in advance should collective bargaining be applied to address such issues as the streamlining of operations or the implementation of major changes to working conditions. However, issues are, in principle, resolved peacefully and in good faith, through labor–management meetings held prior to collective bargaining, and no labor disputes have arisen in over 40 years.
Kawasaki subscribes to the union shop system, and all general personnel belong to the KAWASAKI HEAVY INDUSTIRES WORKERS UNION. The ratio of union membership, as of March 31, 2017, was 76.6% (percentage of full-time employees, including managers).

A Flexible Range of Employment Conditions to Match Individual Abilities and Performance

To offer a flexible range of employment conditions to match individual abilities and performance as well as a system of benefits that improves motivation and incentivizes skill development, Kawasaki employs a “job qualification system” based on employees’ abilities and their target roles or duties to determine employment conditions. These include assigned position, salary, bonus, and career development, among others. Consequently, the Company does not categorize by nationality or gender, or any other discriminatory factor, as the compensation system is applied evenly to all, matched to job qualifications based on ability.
In addition our personnel system serves as the basis for this job qualification system. Personnel assessment consists of a performance evaluation, which assesses the degree of difficulty of the employees’ work duties and their level of achievement and work attitude, and an ability evaluation, which assesses their professional ability with a focus on knowledge and skills. Evaluation criteria are disclosed to all employees.
In addition, superiors meet with their staff at least twice a year, a process that improves employee acceptance of goal-setting and evaluations.

Education and Training to Ensure Fairness in Evaluation and Employment Conditions

To ensure fair and equal evaluation, there is a fixed assessment procedure that is explained to the evaluator. Opportunities to upgrade evaluator skills are offered, for example, in section chief training through methods such as case study.
In addition, once a year, we explain the conditions for promotion and treatment of employees to the labor union, and confirm that employees are treated fairly and equally.


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