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Labor Practices

Last updated on May 18, 2017

Basic Concepts

Organizations create employment and pay workers wages, which helps maintain and improve the living standards of workers. These labor practices as well as the human rights discussed above have a significant impact on society and the economy.
In Japan, the Labor Standards Act and other labor relations-related laws set forth basic rules regarding labor rights including employment opportunities, working hours and health and safety and require both labor and management to comply with them.
Through the efficient reform of organizational human resource structure and the reform of human resource system underlying the structure as well as health care and the improvement of work conditions and environment, J. Front Retailing strives to build systems to revitalize human resources. These efforts include the formation of an organization beneficial to both companies and employees, which takes into account work-life balance, the improvement of employee training programs and the creation of human resource development support programs.

Work-Life Balance

Development and implementation of various systems based on work-life balance

Work-life balance is becoming more important to secure human resources and keep employees healthy both mentally and physically with the backdrop of changes in society and family environment and changes in work environment. We will develop and steadily implement relevant leave and work systems.
Since the number of people with mental illness is increasing, we consider mental health measures, as well as traditional health measures, as an important task in terms of corporate management and human resource and labor management and promote not only physical but mental health care measures.

Development of various leave and work systems and encouragement to use the systems
  • ・We strive to reduce extra working hours by streamlining business operations and setting up a no-overtime day.
  • ・We encourage employees to take annual paid holidays by introducing a half-holiday system (allowing a maximum of five full annual paid holidays per year to be divided into half-day holidays) and an event leave system (allocating three annual paid holidays per year according to individual life event plan) and raising employee awareness.
  • ・We have adopted a system to make available annual paid holidays after the termination of the right to claim them (annual paid holidays that expire during the two-year period immediately before the specified entitlement period) in case of long-term medical treatment, family care and fertility treatment.
  • ・Each company of the Group has in place various child care related systems including child care leave and reduced working hours for child care in order to help child-rearing employees balance work and family life.

〈Child care related systems of Daimaru Matsuzakaya Department Stores〉
Daimaru Matsuzakaya Department Stores provides leave periods and reduced working hours over and above legal requirements. Employees are entitled to child care leave and reduced working hours for child care up to the last day of the month in which the child enters elementary school. Even after these entitlements expire, those who have completed the required length of service are allowed to continue shorter working hours until the last day of the month in which the child enters junior high school by using an optional working hours system (reduced working hours system available for family care and medical care as well as child care).

The numbers of employees who used child care leave and the reduced working hours system as of March 1 , 2017 are shown below.

Description No. of employees
Users of child care leave 125
Reduced hours workers (total of reduced hours workers for child care and optional hours workers)
(Reduced hours workers for child care among above)
408

(134)
Total 533

Note: The number of optional hours workers among reduced hours workers includes the number of those who used the system for family care, medical care, volunteer work and personal development.

Health Care

As our specific health care measures based on the basic idea that employees are the company’s greatest asset and that it is the most important of all things to keep employees healthy both mentally and physically in order to provide better services and a pleasant shopping experience to customers, we focus on primary disease prevention in light of changes in disease structure.
To this end, we conduct health examinations to prevent lifestyle diseases and gynecological examinations for all employees aged 35 and over, as well as legal regular health examinations. By dealing with mental health within the large framework of total mental and physical health care, living conditions surveys are provided as a self-care tool. We put importance on health guidance provided by health care teams based on the results of these examinations and surveys.

Maintenance and Creation of Employment Opportunities and Response to Diversity

The Law Concerning Stabilization of Employment of Older Persons revised in 2006 requires companies to take either of job security measures including the raising of the mandatory retirement age, the introduction of continued employment system and the abolishment of mandatory retirement age. We have adopted a re-employment system since before the revision of the Law with a view to “passing on long accumulated skills” and from the standpoint that “the maintenance and creation of employment is a corporate social responsibility.”
Considering the diversity of human resources as a source of competitiveness, we assign and use people based on individual ability, performance, aptitude and motivation regardless of gender. In addition, we actively promote the employment of the disabled in the recognition that it is a corporate social responsibility.

  • <Reference> Female employees of Daimaru Matsuzakaya Department Stores in leadership positions (as of March 1 , 2017)
  •   Number of females Percentage of females
    General manager 12 12.1%
    Other leadership positions 215 35.2%
    Total 227 32.0%
  • *The figures above include workers temporarily transferred to J. Front Retailing and Daimaru Matsuzakaya Sales Associates.
  • *The number of “other leadership positions” is the total of Managers, Submanagers, Buyers (including Supervisors and Section Leaders from Daimaru Matsuzakaya Sales Associates).
  • Daimaru Matsuzakaya Department Stores has three female executive officers.

Human Resource Development

Stances and initiatives on human resource development

・Individuals set their own career goals and challenge toward them

・Individuals grow by getting their jobs done and companies actively provide such opportunities

Based on two stances above, we position human resource development as the activity of the whole organization and address human resource development by integrating the “organization area,” the “individual area” and the “area connecting organizations and individuals.”
In the “organization area,” we are working on strengthening organization management capabilities using a “role structure chart” as an organization operation tool to develop people in the process of accomplishing difficult tasks on the job. We also construct OJT systems and put in place Off-JT systems that provide expertise and skills systematically so that workers can acquire expertise and skills that accommodate organizations divided by function including the Original Merchandising Business, Daimaru Matsuzakaya Sales Associates and Out-of-Store Sales Divisions.
In the “individual area,” we expand open learning opportunities including external trainings, MBA programs and overseas challenge systems. Employees set their own career goals and challenge these opportunities showing “intention and motivation” toward the achievement of their goals. And at the same time, we promote the effective use of the self-application system and the career entry system. By improving and expanding the expertise courses of Career Support College (self-development school), we create opportunities to increase expertise and skills through personal development.
In the “area connecting organizations and individuals,” we create a human resource map based on the information on the comprehensive assessment of human resources and develop a plan to strengthen human resource capabilities from a medium- to long-term perspective in an effort to promote systematic posting, appointment and development. We also increase opportunities for communication on career between individuals and companies through feedback including milestone interviews and multifaceted observation of behavior traits. In fiscal year 2015, we introduced a new human resource information system named “Talent Management System” in an effort to visualize and consolidate the human resource information of the Group. By grasping various personal traits and on-site information from many sides and “visualizing” them, we will find and select human resources to improve organizational performance through optimal human resource allocation across the Group.

Learning systems to support human resource development

Various learning programs are in place to help individuals learn independently and acquire various abilities.
Major programs include JFR Entry School for the three years after joining the companies, which is designed to strengthen “individual basic skills” and “learning ability”; JFR Leader School that identifies vibrant human resources aged around 30 in the Group and encourages dramatic growth into “transformable leaders”; a career development training (for 27-year-olds) to review experience from the past to the present, find requirements (individual, environment and learning ability) for the achievement of future career vision and provide opportunities for independent career development and; Career Support College, an in-house self-development school that provides 400 courses including group trainings, correspondence courses and e-learning based on the concept of “career independence,” which means that we should create our careers ourselves. We will continue to expand and improve programs to support people who have their own career goals and try to become the “persons they want to be.”

Outline of human resource development