Social

Labor

Basic Policy

The OMRON Group clearly states in the OMRON Human Rights Policy the issues we consider important with regard to labor. The OMRON Human Rights Policy is approved by the Board of Directors and covers not only all directors and employees, but also all temporary employees and employees of contractors who work on OMRON business premises.

Scope of the Human Rights Policy

This Policy applies to all executives and employees of OMRON in order to ensure respect towards the human rights of all stakeholders involved in the OMRON Group value chain. We also expect all business partners of OMRON, including suppliers and distributors, to understand and support the content of this Policy, and will continue to work to ensure that this Policy is respected.

Commitment to “Respect for Human Rights”

We declare that OMRON will carry out human rights due diligence in accordance with the United Nations Guiding Principles on Business and Human Rights and will avoid causing or contributing to adverse human rights impacts in our value chain.

To meet the above-mentioned commitment, OMRON respects human rights as those expressed in the International Bill of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. OMRON Corporation has also signed the United Nations Global Compact and upholds the 10 Principles of the United Nations Global Compact. We will respect the above internationally recognized human rights principles based on compliance with all the laws and regulations of each country and region in which we operate.

Commitment for Specific Human Rights Issues

1. Discrimination or Other Unreasonable Treatment

OMRON does not tolerate any discrimination, acts that hurt the dignity of an individual, harassment or treat others in an unreasonable manner on the basis of national origin, citizenship, color, race, belief, religion, ancestry, marital status, gender, disabilities, age, sexual orientation, gender identification, place of birth, social status, or any other basis prohibited by local law.

2. Forced Labor and Child Labor

OMRON does not tolerate any forced labor or child labor including slavery and human trafficking.

4. Harassment

OMRON does not tolerate any action that causes physical or mental distress such as sexual harassment or power harassment*.

We also established labor-related policies and rules in the OMRON Group Sustainable Conduct Policies and OMRON Group Rules for Ethical Conduct. Through these policies and rules, we strive to offer decent work (the aspirations of people in their working lives) for people who work for the OMRON Group.

Omron Group Sustainable Conduct Policies

1-2. Labor Standards Compliance and Respect for Individuality and Diversity

The Omron Group believes that human resources are an essential source of energy that drives the company’s growth, and that activating human resources is critical to create added value and improve productivity. Based on this belief, the Omron Group will motivate and support employees to reach their full potential by improving the working environment through appropriate human development, worker support initiatives, performance evaluation and remuneration, workplace facilities, corporate culture, etc. The Omron Group will also comply with applicable laws in respective countries or regions regarding remuneration and treatment for employees. Also, the Omron Group has a high regard for the ILO Declaration on Fundamental Principles and Rights at Work. This means that we will, in accordance with applicable law, respect freedom of association and the right to collective bargaining, make the recruiting process discrimination-free, and otherwise eliminate unlawful or inappropriate discrimination in the workplace. We also will never be involved in forced, compulsory, or child labor.

Omron Group Rules for Ethical Conduct

2. Labor Standards Compliance

  1. No Harassment
    We must not engage in sexual harassment, power harassment, status-based harassment (i.e., workplace discrimination or infliction of emotional distress based on a position of power) or any other form of harassment.
  2. Proper Work Communication
    Our workplace communication must not adversely affect the company’s reputation or creditworthiness, or create a hostile work environment.
  3. No Coercion
    We must comply with the Rules and must not use coercion, force or threats to induce others to violate internal OMRON policies or applicable laws and regulations.

Promotion Structure

We at the OMRON Group has been working to establish internal rules and a labor management system by referring to the management system set forth in the RBA Code of Conduct to address issues related to the ILO Core Labour Standards and other international standards.

As an implementation organization within the OMRON Group, the Global Human Resources and Administration HQ serves as a control under the responsibility of CHRO, who has been delegated authority by the president and CEO. In this way, we have established a collaborative system with each area management HQ and Group companies in each country. We pursue efforts to address labor issues in line with international standards, not only for our own employees, but also for all employees working in on-site, including contractors and temporary employees.

Labor Risk Assessments

In fiscal 2022, we surveyed and assessed the current status of 24 OMRON Group production sites in Japan, China, Asia Pacific, Europe and North America, using the Self-Assessment Questionnaire (SAQ) from the RBA.

As one of our key challenges, we are currently working on the protection of human rights for the employees of contractors who provide services (such as production, development, in-house logistics, security guards, meal service, cleaning) at our production sites. To address this challenge, we have enhanced our human rights training program and whistleblower system in Japan, China, Asia Pacific, Europe, and the Americas. We had also proceeded the monitoring of contractors with regard to human rights and labor practices.

With regard to the joint ventures with less than 50% stakes holding, we conduct human rights assessment equivalent to the Group companies at least every 3 years, requiring corrective actions if necessary.

Main assessment categories

The main categories subject to assessment under the labor section of the RBA Code of Conduct are as follows.

Freely chosen employment, young workers, working hours, wages and benefits, humane treatment, non-discrimination/non-harassment, freedom of association and collective bargaining rights.

Initiatives with on-site contractors

We at the OMRON Group believe that there are essential factors to practice the OMRON Principles and realize sustainable supply chain: To eliminate human rights violation risks within the Group, and create a work environment in which everyone can work in a safe and healthy manner both physically and mentally, and demonstrate his/her best performance.

The idea applies not only to employees and temporary workers at the OMRON Group, but also to employees of on-site contractors working at the Group sites. When their employees start working within our sites, we communicate with them about our human rights policy and human rights related initiatives such as access to remedies open to on-site contractors’ employees, which include human rights consultations and compliance hotline programs. Additionally, targeting contractors’ on-site leaders, we offer them human rights training sessions so that they can share the learnings with the rest of their on-site members as well. Contractors are defined in RBA standard as one of the next tier major suppliers, and we at the OMRON Group are furthering our commitment accordingly.

We ask onsite contractors to comply with the OMRON Group Supplier Code of Conduct, provide information related to onsite personnel, and ensure that secondary suppliers are fully aware of the Code. We require them to confirm their agreement in writing.

Main Initiatives Related to Labor Issues

Discrimination or other unreasonable treatment

The OMRON Group Human Rights Policy declares that the group will not tolerate discrimination or any act that offends personal dignity, harassment, or other unjust treatment of any person on any grounds, including nationality, citizenship, place of birth, race, color, creed, religion, lineage (ethnicity), marital status, gender, sexual orientation, gender identity, disability, age, social status, or any other basis specified by local laws and regulations.

Examples of specific initiatives

  • Ongoing assessments under RBA standards of discrimination in job offers and employment
  • Removal of contract clauses that result in discrimination against female migrant workers (fiscal 2018)

Forced labor and child labor

The OMRON Human Rights Policy forbids all forced labor and child labor, including slavery and human trafficking. The OMRON Group Sustainable Procurement Guidelines stipulate the prohibition of forced labor in the supply chain, including slavery and human trafficking, and we require all suppliers to comply with the content of these guidelines.

As a measure to strengthen our efforts, we conduct regular self-checks through assessments and questionnaires regarding child labor and forced labor to verify the situation on the ground both internally and externally.

We report on our efforts against child labor and forced labor in OMRON Group Slavery and Human Trafficking Statement. The Statement, which we issue annually, is the responsibility of our Board of Directors and is approved by a director delegated by the Board.

Examples of specific initiatives

  • Surveyed foreign workers at OMRON production sites globally (fiscal 2017)
  • Improved employment conditions for foreign immigrant workers and welfare facilities; improved long labor hours in certain regions (fiscal 2018)
  • Returned passports and other documents to avoid impeding freedom of movement (fiscal 2018)
  • Surveyed foreign technical interns at domestic production sites (fiscal 2021-)
  • Reviewed temporary staffing agencies regarding the employment of migrant workers at production sites outside Japan (fiscal 2022)
  • Implemented human rights training for contract employees working at OMRON sites, and expanded the scope of operations for the anonymous whistleblower system (fiscal 2021-)
  • Conducted an assessment to determine the presence of forced labor and child labor among contractor employees working on our business premises (fiscal 2022)

Working hours

We at the OMRON Group (in Japan) strive to reform work styles by setting targets for total actual working hours. In this way, we maintain and improve the health of every employee, while encouraging employees to exercise their creativity and increase productivity, which leads to sustainable individual and corporate growth.

Example of specific initiatives

  • Shortened and improved working hours through improving productivity at production sites outside Japan (fiscal 2022)

Fair treatment and wages

All Group employees are managed in the following way.

  • All employees are treated fairly and appropriately based on individual evaluations.
  • Wage levels for employees are determined based on role, ability, and market conditions in the country and industry. Wages also reflect the results achieved by the individual. In determining specific wages, we comply with national and regional laws and regulations.

We follow the principle of equal pay for equal work, and we do not differentiate by gender for equal work.

Example of specific initiatives

  • Checked health and safety standards for employee dormitories at production sites outside Japan (fiscal 2022)

Harassment prevention

In March 2022, the OMRON Group committed in its Human Rights Policy, “OMRON does not tolerate any action that causes physical or mental distress such as sexual harassment or power harassment.”

At the OMRON Group in Japan, after the annual human rights training sessions given to all employees, participants are asked to fill out a questionnaire regarding harassment-related information (e.g. “Had harassment?” “Saw harassment?”), with the names of respondents included. This serves to assess the current situation and identify possible sources of harassment, leading to solve the problem at an early stage.

To improve consultation skills, training to deal with harassment consultations is offered, focusing on role-playing by inviting external instructors to ensure a high level of effectiveness.

To offer multiple options, we also have compliance hotlines in place.

Example of specific initiatives

  • Continued raising awareness of harassment in the workplace (fiscal 2007-)
  • Took disciplinary actions in problematic cases

Freedom of association and the right to collective bargaining

OMRON Group Sustainable Conduct Policies “1-2. Labor Standards Compliance and Respect for Individuality and Diversity” clarifies that it respects the ILO Declaration on Fundamental Principles and Rights at Work, including freedom of association and the right to collective bargaining.

OMRON Corporation and Group companies in Japan with trade unions each has concluded a labor agreement with the union. The agreement requires both sides to act in good faith and to strictly observe contract provisions in order to establish and develop labor-management relations based on mutual sincerity and trust.

Currently, sustainable growth of the OMRON Group as a whole is more crucial than ever, as is resolving the entire Group’s issues. With this in mind, OMRON is in close communication with the OMRON Group Trade Union Confederation regarding business plans, management measures, and working conditions.

Management policies, business plans, and management and business measures are explained to union members at various Management Council meetings, while discussions on working conditions are held at Labor-Management Council meetings and Labor-Management Review Committee meetings. Through extensive discussions based on respect for the other party’s position, the company and the Trade Union jointly pursue the Group’s sustained development and the wellbeing of Union members.

In order to realize sustainable growth of both the company and employees, labor and management have been working hard together to propose and carry out a number of ideas to reform personnel system, management support measures, and more. Among the initiatives are:

  • Retirement benefit & pension system reform to enhance sustainability of the defined contribution pension system, including additional educational support and products
  • Shift from relative evaluation to absolute evaluation to enhance employees’ motivation
  • Establishment of a new system to continue to employ 65-year-old and order suited to the new era

A similar stance is taken outside Japan. Each of OMRON Group company in Greater China has organized a labor union, initiating activities to encourage discussion between the management team and representatives of employees, and promote better understanding between them.

Percentage of employees belonging to labor unions and covered by collective labor agreements

86% in 22 countries including Japan*1, Australia, Austria, Bangladesh, Brazil, Finland, France, Germany, India, Indonesia, Italy, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Singapore, South Korea, Sweden, Thailand, Vietnam (As of March 31, 2023)

  • *1:In Japan, 97% of employees are trade union members
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