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Occupational Health and Safety / Labor-Management Relations

Occupational Health and Safety

At Fuji Xerox, ensuring safety takes priority over all work duties. This is a principle that we and our affiliates as well as our sales companies embrace to achieve sound physical and mental health of employees and to create safe and pleasant workplaces.

In fiscal 2016, we undertook various activities with a focus on five priority goals, which included measures against lifestyle-related diseases and smoking, measures for the early detection of cancer, measures for mental health, measures against the risks of long working hours, and measures to prevent workplace accidents.

To prevent workplace accidents, we have continued to work to identify their causes, to consider means of preventing reoccurrences, and to ensure thorough understanding among employees at each site through the activities of the occupational health and safety committee. In fiscal 2016, the number of accidents per 1,000 employees was 1.35 at Fuji Xerox (unconsolidated; down by 0.7 compared to fiscal 2015); 2.67 at affiliates in Japan (excluding sales companies; down by 4.69); and 5.15 at sales companies (down by 1.59) in Japan. The accident rates thus decreased year on year across the entire company in Japan.

Fuji Xerox had 19 workplace accidents (unconsolidated; an increase of two compared to fiscal 2015), of which three were accompanied by lost work time (same as fiscal 2015). The frequency rate Note 1 was 0.00 (same as fiscal 2015). The severity rate Note 2 was 0.00 (also same as fiscal 2015). We will continue raising awareness through the occupational health and safety committee at each site to prevent serious accidents involving lost work time, and will continue our activities to enhance the attention paid toward preventing workplace accidents.

With regard to general activities intended to promote workplace safety and health, we will make use of the employee health database that we set up in fiscal 2015 to enhance our ability to analyze employee health.

  • Note 1 The frequency rate represents the number of work-related deaths and injuries per one million actual work-hours. (not including dispatched staff)
  • Note 2 The severity rate represents the number of lost work days per one thousand actual work-hours. (not including dispatched staff)

Number of Work-related Accidents per 1,000 Employees (Fuji Xerox and its Affiliates)

  • Note The number of work-related accidents is the total of accidents at work and during the commute.
    Percentages and ratios calculated for affiliates and sales companies in Japan and overseas are based on a weighted average of each company

Maintaining and Improving Health

The health and safety regulations applying to all Fuji Xerox and its affiliates establish the following basic position concerning health:

Health is an essential aspect of life planning for each employee. Employee health is an important resource that contributes to Company business activities. While maintaining health is the personal responsibility of each employee, the Company must support such efforts. For Fuji Xerox to establish itself as an excellent company, it must first have employees who are vibrant and healthy, both psychologically and physically. And with health being regarded as an important factor in the management of our business, Fuji Xerox issued the following five key initiatives for the promotion of safety and health.

  1. Measures against lifestyle-related diseases and against smoking: We are making efforts to prevent the aggravation of lifestyle-related diseases by offering guidance from industrial physicians and health nurses and building awareness on preventing such diseases throughout our facilities as well as by placing more focus on such diseases in diagnosis based on physical checkup results. As for measures against smoking, Fuji Xerox made all areas inside its buildings completely smoke-free at each of its facilities including its affiliates in Japan in January 2015, mainly to provide employees with comfortable workplaces and to help them stop smoking. Other efforts include seminars on how to quit smoking led by industrial physicians and nurses, as well as quit campaigns to give financial support to non-smoking efforts. As a result of such activities, the percentage of smokers at Fuji Xerox (unconsolidated) dropped from 19.1% in fiscal 2014 to 16.8% in fiscal 2016. We will further develop a workplace environment that encourages employees across the company, particularly among the younger generations, to quit smoking, thereby achieving early the target of 12.2% set by the Japanese Ministry of Health, Labour and Welfare by fiscal 2022.
  2. Measures against cancer: We provided some employees with an opportunity to undergo an endoscopic stomach examination on a trial basis in fiscal 2014, and made it possible for employees across the company to take the examination in fiscal 2015. The percentage of employees who actually underwent such an endoscopy as part of their regular checkup reached 70% in fiscal 2016. We also added female-specific cancer screening to employees’ regular health check items and, in cooperation with the health insurance association, we widely encouraged female workers to receive the screening by highlighting the fact that it was provided to them virtually free of charge. As a result, the number of those undergoing screening exceeded 70% in fiscal 2016. Moreover, in October 2015 we introduced a system to subsidize colonoscopies to encourage employees aged 50 or older, who generally have higher morbidity risks, to undergo the examination. Further, we encourage those whose examination results indicate abnormalities to undergo detailed examinations and other follow-up for the early detection and treatment of malignant tumors.
  3. Measures for mental health: We began checking the stress level of our employees in 2013, and 89% of our employees had their stress level checked in fiscal 2016. We also gave feedback on health risks within a given group to the head of the division, to serve as reference for operating the division. In addition, for divisions with high health risks, industrial physicians gave direct support to the divisions, including giving assertion training. We will continue to support the health of both individuals and organizations.
  4. Measures against risk of long working hours: In 2016, the number of employees who were interviewed by the company on their long working hours increased by 36% compared to the previous year. We will discuss the causes and countermeasures for each of the divisions with such employees mainly with their safety and health committees and will also work to mitigate the health risks from working long hours by enhancing preventive management based on individual data.
  5. Measures against work-related accidents: Each facility sets a target number of consecutive days with zero work-related accidents. To achieve this target, safety and health rules were communicated to employees.

In recognition of these efforts, the Japanese Ministry of Economy, Trade and Industry certified Fuji Xerox as one of the “White 500” companies in the large enterprise category under the 2017 Health and Productivity Management Organization Recognition Program.

From fiscal 2017 onwards, Fuji Xerox and its affiliates will set common KPIs by sharing the priority implementation items as shown above, and make efforts to promote the health of their employees.

Labor-Management Relations

Labor-management relations hinge on a basic spirit of each side treating the other with respect and seeking to develop the Company into one in which labor and management interact on an equal footing from a foundation of mutual responsibility and trust, aiming for communication based on the common acknowledgement of facts and honest dialogue. Dialogue between management and union members takes place on a daily basis through the labor-management council and other labor-management meetings, including discussions at each workplace, and is reflected in the drafting of management strategy and in operations. When any change is made to important systems, management and union representatives hold consultations to ensure mutual understanding of the objective of the change and reach consensus.

In fiscal 2013, the management and workers of Fuji Xerox and its affiliates agreed on the "All Fuji Xerox Basic Spirit and Goal for Labor-Management Relations" and the "Basic Activities for Labor-Management Relations." The workers and management then worked together to implement these initiatives.

In fiscal 2016, Fuji Xerox and its affiliate held labor-management forums to ensure that the new work systems introduced in and after fiscal 2014 would be used in line with the predefined rules, and that working hours would be managed according to the guidance provided by the labor authorities. Labor and management representatives thus shared ideas at the forums for the speedier introduction of new work styles.

Both labor and management will continue their efforts to improve the work environment and the health of employees. By embracing the basic spirit of Fuji Xerox labor-management relations, we will continue our efforts to establish and achieve the goals of labor-management relations.

Below is the description of key initiatives in labor-relations management.

Basic Activities for Labor-Management Relations of Fuji Xerox and its Affiliates (Set in Fiscal 2013)

Implementation Item To Be Done by the Company To Be Done by Employees' Organizations
(1) Agreements and Regulations Overtime work agreements in line with Article 36 of the Labor Standards Act
(Council on agreements based on Article 36/4Q)
  • Management of working hours and understanding of the actual situation
  • Solving problems to reduce overtime work
  • Raising employees' awareness of agreements based on Article 36
  • Understanding of the actual situation regarding the management of working hours
  • Submission of opinions for the reduction of overtime work
  • Development of successors (education on legal matters / Basic Spirit for Labor-Management Relations)
Other labor-management agreements pursuant to law Creation of agreements and labor-management consultations pursuant to law Examination from the viewpoint of the company / employees and labor-management consultations
Labor regulations Provision of appropriate working conditions Checking of new and revised conditions and submission of relevant opinions
(2) Workplace Safety and Health Health and safety management
(Monthly meeting of each occupational health and safety committee)
Promotion of safety and health activities Checking of activities and submission of opinions
Daily workplace checks Appropriate management of labor affairs, including environment / equipment safety and compliance Understanding of situations regarding safety and health and legal compliance and submission of reports and opinions to the company
(3) Labor-Management Communication Labor-management meetings
(Dates to be decided by each company)
  • Explanation of business results and management challenges
  • Discussions regarding the business growth, and solutions for labor-management issues
  • Understanding of the performance / management challenges
  • Labor-management discussions regarding business growth and solutions to existing issues
  • Internal examination about the aforementioned issues
Workplace meetings (Dates to be decided by each company)
  • Solution of workplace issues
  • Escalation to upper organizations
Understanding of the actual situation and submission of recommendations
(4) PR (Timely announcement) Announcement of the results (agreements pursuant to Article 36, labor-management meeting topics, etc.), and other PR activities

Fair Evaluation and Treatment (Human Resource System)

In fiscal 1999, Fuji Xerox shifted from a Human Resource system based on job qualifications to a role-based system. The goal is to build an equitable relationship between the Company and employees whereby the Company specifies the roles that need to be filled to achieve its management goals and our employees respond by demonstrating their individual abilities and specialized skills. By doing this, they experience personal and professional growth and are granted recognition and rewards.

Dramatic changes in the Company's operating environment have made it essential to achieve further growth. Although our employees are the driving force for achieving this growth, employee surveys and assessments conducted by outside organizations revealed that our employees tend to be rather conservative. Therefore, in fiscal 2012, we reformed our HR system in order to better identify employees who have potential for growth and change, to promote such employees promptly, and to treat them fairly, thereby changing the employees' mentality from conservative to proactive one. This concept of "confronting growth and change" means providing customers with products that provide overwhelmingly superior technologies and cost performance; accelerating solutions and services on a global basis; and developing new markets and customers. To attain these goals, the new HR system has been based on four cornerstones, as follows:

  1. Clear definition of the roles expected of each position grade
  2. Adopting a system of behavioral evaluations incorporating relative evaluations in addition to performance evaluations in order to encourage innovation
  3. Early advancement of employees who embody innovation (including promotion of women in the workplace)
  4. A renewed emphasis on thoroughness in compensation reflecting roles and results, as adopted in fiscal 2006

The evaluation system consists of two elements: performance evaluations, which break down organizational goals by employee and recognize employees who achieve challenging performance targets; and behavioral evaluations, which seek to recognize factors such as innovation in attaining high performance goals, proactive cooperation energizing the overall organization, and positive activities in human resource development or other areas. Evaluations are based on the extent of contributions or results, in light of individual grades and roles, the scope or effectiveness of the action demonstrated.

We also revised the HR appointment (promotion) review system to make it possible to appoint individuals with the talent and motivation needed for management positions at an early stage. Through this revision, the number of female employees and employees in their 30s holding management positions has increased. In particular, in fiscal 2016, the proportion of female managers rose to 6.4%. In order to promote women in the workplace, Fuji Xerox has issued a plan to increase the share of managerial positions held by women to 14% by fiscal 2020. As such, we will continue our companywide efforts to achieve this plan.

Furthermore, while implementing the early promotion of talented employees, in order to ensure that employees are given an adequate number of years of experience in management from the perspective of directing the organization, the management position retirement system (title: next generation training system) has been implemented not only at the department head level but also at the manager level and above. With this system, we aim to encourage our senior employees holding management positions to take on the role of "fostering the next generation and making way for them." After these employees retire from their management positions, our aim is to make them feel revitalized and produce results for the company as professional employees.

In addition to the revision of the HR systems, going forward we aim to achieve 1) a business strategy with the flexible assignment of human resources, 2) human resource development by acquiring diverse perspectives and multiple skills and 3) realize employee career plans. By achieving these, we plan to stimulate company-wide rotation.

In fiscal 2015, to recognize and develop employees who strive for growth and reforms and to drive forward optimal deployment of human resources of Fuji Xerox and all of its affiliates, we adopted a uniform personnel systems and program infrastructure for all companies, including Fuji Xerox, affiliated companies, and sales companies in Japan.

In fiscal 2017 we plan to achieve further growth by making use of the uniform infrastructure established in fiscal 2015, and displaying our overall strengths as a group.

Pension System

Fuji Xerox and its affiliates and sales companies in Japan provide employees with pension systems based on (1) a defined benefit (DB) corporate pension fund and (2) a defined contribution (DC) benefit plan. In the investment of the DB corporate pension fund, to maintain sufficient assets to cover future payment of pension benefits, we appropriately diversify the investment portfolio in order to control investment risks and obtain a stable income from the investments.

As part of the activities under the defined contribution (DC) pension plan, we provide ongoing investment education to employees via an e-learning program, and education programs devoted to the pension system targeting new employees. The target audience of these educational programs has now been expanded to include employees of Fuji Xerox's affiliates and sales companies in Japan. Due to the aging of society and the declining birthrate, the Japanese government is beginning to review the public pension payment standards and the age at which citizens begin to receive their pensions. Amid this situation, we introduced matching contribution to the DC pension plan in October 2016 in order to help employees build more assets for their life after they retire.

In fiscal 2017, we are planning to introduce additional educational programs, such as life planning education, to further promote the employees' understanding of investment.