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SOCIAL
Fair Labor Practices

Policy

Fiscal 2017 Goals and Overview

Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal

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Fiscal 2017 Goals KPIs Results and progress of fiscal 2017 initiatives Boundary Related SDGs
Sagawa Express Japan Overseas
Respect for the human rights of workers throughout the entire supply chain and provision of a safe and secure work environment. Reduction of overtime hours compared to the prior year 1.6% reduction compared to fiscal 2016   4.7
8.8

Systems

The SG Holdings Group has put in place a variety of systems to provide its over 90,000 employees with fair and equitable opportunities and an environment in which they can continue to work securely.

Group-wide human resources systems

Beginning in September 2012, the SG Holdings Group initiated group-wide human resources systems aimed at leveraging human resources across the Group's companies in Japan. The goal is to develop highly competitive human resources by effectively mobilizing employees in a way that leads to maximum self-development.

Group-wide Human Resource Systems (in Japan)
  1. 01Function-based Grade Level System
  2. 02M/A (Manager/Associate) Promotion Evaluation System
  3. 03GM (Group Manager) Human Resources System
  4. 04GS (Group Staff) Skills Development System
  5. 05Rotation System

Fair Evaluation System

The Group has introduced an evaluation system designed to properly evaluate each employee's level of contribution to the business and the degree to which they practice the roles and actions required of their specific positions and grades. We have also introduced performance-linked bonuses for some employees. In Japan, regular employees are subject to this evaluation system.

Percentage of employees undergoing a personnel evaluation in fiscal 2017 (in Japan)

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Regular employees 100%

Employee Benefits System

In addition to having in place social insurance based on law, the Group also implements other employee benefit measures. Group-wide, the SGH Mutual Aid Society, a general incorporated foundation, began offering employee benefit services in 2017. At the same time, we have also introduced retirement pay systems, including a defined contribution pension system, as well as an employee stock ownership system.

Establishment of a Mutual Aid Society

From April 1, 2017, the SG Holdings Group began operation of a Group employee welfare program through the newly established the SGH Mutual Aid Society, a general incorporated foundation. The Society provides a lineup of services based on the concepts of (1) provision of security throughout life, (2) building an environment where employees become healthy and (3) fostering a workplace where employees can work together enthusiastically and enjoy life.
Furthermore, the services have been categorized in three groups-Benefits, Information, and Experience/Participation- in alignment with the three types of employment.
The Society will provide more comprehensive welfare services to employees resulting in greater loyalty on the part of employees and their families, creating an environment where employees obtain greater work satisfaction and providing life support. The Society also supports OB/OG clubs for retirees and post-retirement part-time employees, publishes club bulletins, and hosts gatherings.

Initiatives

Night Delivery

Sagawa Express has begun an initiative known as "Night Delivery" utilizing delivery supporters (mostly professional parcel delivery drivers on service contract toSagawa Express) for making deliveries during limited nighttime hours when people are most likely to be at home. This initiative is expected to make possible a reduction in nighttime deliveries by Sales Drivers® and contribute to controlling their long work hours.

Introduction of the Advance Collection Reservation Acceptance System

In April 2018, Sagawa Express changed its policy of accepting telephone and online requests for collections on Sundays, holidays, and during certain periods determined by Sagawa Express.* In a new system, these collection requests are accepted until the day prior to the desired pickup day. This policy change was based on the results of an initial trial run of the system in December 2017, a time when there was a great volume of shipments due to Christmas and year-end gift giving.
The prior-day reservation test resulted in contributing to improved delivery service quality. With the introduction of this system, we will be aiming for further improvement in service quality and in employees' work environment.

*The certain periods determined by Sagawa Express are assumed to be the Bon holidays, and year-end and New Year's holidays.
*This does not apply to regularly scheduled collection.

Four-Day Work Week

Sagawa Express has begun, on a trial basis, to hire sales drivers who work a four-day week and are allowed to hold second jobs. This new system was rolled out in April 2017 for new hires in certain locations. It is aimed to meet the needs of people who find it difficult to work a five-day week because of a side job, attending school, raising a child, caregiving or other factors. It is hoped that hiring from this new range of potential workers, which in the past was not able to apply for employment, will lead to a more inviting work environment for employees with shorter working hours and a higher take-up rate of annual paid leave.

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