At JSR, we think that fostering diversity, equity, and inclusion (DE&I) and the two pillars built on that are essential in improving the competitiveness of the organization and employees to achieve sustainable growth and a resilient organization. Those two pillars are 1) establishing a work environment, various systems, and IT infrastructure to make flexible work styles possible, and 2) work-style innovation (WSI) that maximizes results by accepting many flexible work styles at each workplace, mutually supporting them, and transforming them into organizational strengths.

To explain in more detail, employees use the various systems and infrastructure appropriately, as needed, proactively practice work-life management, and implement a workstyle that allows them to work in health and with vigor. Each workplace is aiming to realize the vision for their own division by employing business management, people management, and using team building to create psychological safety as they make active use of the latest digital technologies and other means to dramatically improve productivity.

Such environments increase employee engagement and create workplaces that make it easy to work and provide job satisfaction. This generates innovation and competitiveness and will lead to sustained growth.

The Human Resources Development Department establishes work environments and formulates, designs, and implements policies on various systems. The Diversity Development Office takes the lead on formulating the policy on work style innovation and planning and implementing measures. Based on the medium-term human resources strategy, the two organizations work closely together to report the details of initiatives to management as needed and use the intranet to make employees aware of these initiatives.

JSR has a variety of systems designed to create an environment that helps employees balance work and caretaking duties. JSR also distributes a guidebook detailing the various support programs available for balancing work and caretaking (including those within the company and without) to educate employees about the options available to them.

We are implementing various initiatives to support employees’ diverse working styles. In addition to easing the requirements to qualify for the work-from-home system, this includes changing the system to eliminate uniform time limitations (up to 5 days per month) and allow for flexibility depending on the work or department; introducing a by-the-hour annual paid leave system that allows employees to take their annual paid leave in one-hour increments; extending the time period during which employees can work shortened hours for child care and nursing care; and adding more annual paid holidays for young employees (14 days in the first year of employment).

* Retention rate after one year: Of the number of employees who have returned from childcare leave in fiscal year (n-1), the percentage who still work at the company at the end of fiscal year n
Retention rate after three years: Of the number of employees who have returned from childcare leave in fiscal year (n-3), the percentage who still work at the company at the end of fiscal year n

* At the request of employees who use these various systems, we have established the mechanisms for lending company PCs or making it possible for them to access email and internal systems through a dedicated app on their personal devices while on leave. In addition to providing a way for employees to obtain information on the company and workplace during leave, these mechanisms are used as BCP measures during natural disasters, pandemics, etc.

JSR has also established a discretionary work system for employees in R&D, as well as a "no-core" flextime work system for employees who do not work shifts. Employees who need time off for community service activities can take up to a total of five days paid leave per year as volunteer leave.

In addition to compensation benefits available during paid leave periods via health and employment insurance, JSR employees are provided with the following original benefits. These benefits aim to aid employees in maintaining a healthy work-life balance.

• ESG Data

• Childbirth Lump-Sum Allowance
  Women enrolled in JSR's health insurance program are eligible to receive 100,000 yen per child as Childbirth Lump-Sum allowance in addition to the government mandated childbirth allowance.
• Extended Childcare Leave Allowance
  Employees on extended childcare leave are eligible to receive their base salary with an additional 50% bonus for the first five days. This allowance is funded via JSR Mutual Aid Association.
• Post Childcare Leave Reinstatement Allowance
  For employees who have returned back to work for a continues six months following maternity leave or extended childcare leave (of at least one month) are eligible to receive an allowance of 200,000 yen per child. This allowance is funded by JSR Mutual Aid Association for the purpose of recognizing employees past service, and continued dedication.
• Daycare Allowance
  In households where both parents work, employees are reimbursed half the cost of babysitter services that are required on working days. Costs are reimbursed via JSR Mutual Aid Association with an annual limit of 400,000 yen per eligible employee.

JSR recognizes the need for continual innovation of work styles to turn organizational strengths into organizational results. Work style innovation does not just refer to continuing to search for better work styles by checking and reflecting on your own work styles. It includes innovation to achieve better work styles for the organization as a whole while learning about and understanding the diverse work styles adopted by those around you and mutually supporting one another from time to time. We think that, as individuals and the organization continue to innovate work styles, this will lead to a resilient organization that is able to respond flexibly to changes in the external environment.

FY2022 Topics

In FY2022, we conducted a survey of employees working at headquarters departments, where telecommuting has become commonplace, about their work styles over the past three years. This survey covered the actual state of employees’ work styles, their feelings about current work styles, and issues.

Based on the results, we confirmed that employees are generally satisfied with their current work style. Of particular note was the fact that employees have made good use of the flexible work system and devised communication with those around them, thereby improving the efficiency and productivity of their workplace and team. On the other hand, however, it is clear that there are still concerns about medium- to long-term human resource development and organizational development, such as the creation of opportunities to replace casual communication, a sense of unity in the workplace, as well as the inheritance and cultivation of a sense of belonging and camaraderie with the company and the corporate culture.

In light of these concerns, we are recommending autonomous work-life management and diverse work styles, and promoting hybrid work that combines face-to-face and online work. Specifically, we have presented the following recommendations for face-to-face and online meetings and are promoting initiatives at each workplace.

(1) Thinking on Workers’ Union Activities

We strive to maintain a relationship with JSR Workers’ Union that allows us to routinely engage in constructive dialogue through regular labor-management councils, meetings concerning the revision of labor agreements, and other opportunities. We are also working to build better workplace environments with attention to union concerns—namely, wage policy, labor environment policy, welfare policy, leisure time, public relations and volunteerism policy, and organizational policy.

(2) Codes of Conduct

We will abide by national and international labor codes and respect workers’ right of association and right for collective negotiation in the realm of basic labor rights.

(3) Communication between JSR and JSR Workers’ Union

JSR and JSR Workers' Union have entered a labor agreement based on workers' union regulations. As specified in the labor agreement, we notify JSR Worker’s Union before implementing significant changes in operations.

The president, directors in charge of individual business segments, and workers’ union representatives have regular discussions to exchange opinions and conduct Q&A sessions regarding the working environment, business conditions, major company policies, and workers' union activities. JSR Workers' Union discloses the content of these discussions with union members. Moreover, we endeavor to deepen mutual understanding and trust as well as to maintain and strengthen sound labor relations through frequent labor-management councils at the employee and plant levels, local labor-management councils, and Safety and Health Committee meetings.

In FY2022, we held a number of discussions on our approach to future employee welfare and benefits systems in order to address growing diversity in the lifestyles and careers of our employees. We are now making preparations involving labor and management aimed at realizing an employee welfare and benefits system that provides assistance and opportunities for employees to think and act on their own with regard to health improvement, life planning, career planning and skills building.

(4) Dialogue between the Workers’ Union and its Members

Union members at each workplace represent workplace workers' opinions. They also act as a conduit between union leadership and the union members. Workplace discussions and questionnaires are conducted to ensure the ideas and opinions of union members are incorporated into union activities.

(5) JSR Workers’ Union Membership

As of the end of March 2023, the enrollment rate in JSR Workers’ Union was 100%, made up of 1,653 employees excluding board members, management personnel, etc. The Union is a member of Japanese Federation of Chemical Workers’ Unions, an umbrella organization.

The total number of union members is 2,022, including members of unions organized at consolidated subsidiaries. This represents 25.3% of the 7,994 employees at the consolidated level.

Number of Members Enrolled in the Worker’s Union and Enrollment Rate

		FY2018	FY2019	FY2020	FY2021	FY2022
JSR Corporation	Number of members	2,629	2,709	2,799	2,746	1,653
	Enrollment rate	100%	100%	100%	100%	100%
JSR Group	Number of members	3,588	3,739	3,766	3,775	2,022
	Percentage of consolidated employees	41.0%	41.3%	40.1%	38.9%	25.3%