Labor Practice

Nabtesco was established following the integration of Teijin Seiki Co., Ltd. and NABCO Ltd. in October 2004, and the labor unions of the two companies were united on October 30, 2010 to form the Nabtesco Labor Union (hereinafter referred to as the “Union”). The Union is a union shop system with approximately 2,000 members as of December 31, 2025, and serves as the representative of the majority in all domestic establishments. In December 2022, the Union welcomed as new labor union members post-retirement continuous employees who were previously ineligible for membership. This was done in order to absorb the voices of more workers and develop union activities to realize a secure and rewarding work environment.

The labor and management of Nabtesco maintains good relations with the union by jointly discussing ways to improve the company’s various systems and programs, regularly meeting to exchange opinions regarding business management, environment and occupational health and safety, and salaries and bonuses. The written agreement between the company and the union includes a clear statement on management’s obligations to make efforts to implement the no overtime day system and encourage employees to take planned annual paid leaves. The labor and management cooperate with the union to help maintain the work-life balance of its employees.

Nabtesco holds regular labor-management meetings with the labor union. Through these meetings, the union receives important information regarding the Company's management on an ongoing basis, helping to maintain sound labor-management relations. In recent years, labor and management have worked together to address shared challenges through constructive dialogue and consultation on a wide range of topics, including business strategy-related management initiatives such as the introduction of a role-based personnel system and the extension of the retirement age, as well as the review of treatment and benefits for non-union employees.

In addition, when either party has proposals concerning the working conditions or treatment of union members, labor-management council meetings are convened. Where consensus cannot be reached, the Company responds to collective bargaining in order to make every effort to achieve a peaceful resolution and protect the right to collective bargaining.

In the collective labor agreement, Nabtesco approves that the labor union has the three rights of labor (the right to organize, the right to bargain collectively and the right to act collectively).

Nabtesco regards its people, who are responsible for executing its business strategies, as one of its most important management assets. We believe that our long-term competitiveness is built on the continuous development of human resources and the transfer of technologies, skills, experience, and know-how across generations. Accordingly, we place a strong emphasis on providing stable employment that enables employees to fully demonstrate and continuously develop their capabilities over the long term, while balancing employee growth with the sustainable growth of the Company.

Based on this philosophy, we have established policies and systems related to employment and working conditions through labor-management agreements that provide support beyond statutory requirements. We also maintain programs that flexibly accommodate changes in employees’ life stages and temporary health conditions, helping employees continue working with peace of mind throughout their careers and strengthening social protection beyond statutory requirements.

Nabtesco has introduced a role-based compensation system. We prioritize providing timely, appropriate rewards for employees’ roles and contributions, and strive to offer competitive, attractive compensation. As part of this approach, we participate in annual external compensation surveys to verify the appropriateness and competitiveness of our compensation levels based on benchmark data, while continuously operating and reviewing the system. For non-regular employees, we have established a compensation system that differs from that of regular employees; however, based on the principle of equal pay for equal work, we ensure an appropriate balance with regular employees’ compensation and provide a level that enables them to live with peace of mind. Through these initiatives, we are striving to achieve fair and appropriate compensation across the organization.

In addition, through agreements with the labor union, Nabtesco has established its own workplace-specific minimum wages that exceed the regional and industry-specific statutory minimum wages specified by the Minimum Wage Act. Based on these agreements, the company sets workplace-specific minimum wages by adding a fixed amount to the annually revised statutory minimum levels in principle. While workplace-specific minimum wages serve primarily as a safety net, they also provide employees with a sense of security and ensure compliance with relevant laws.

Also at the Nabtesco Group companies outside Japan, employee wage levels are set in accordance with laws stipulating minimum wages in the relevant country to ensure legal compliance.

Nabtesco believes that enabling each employee to fully demonstrate their capabilities and create high added value is essential to the Company’s sustainable growth. To this end, we continuously improve our work-related systems and practices through ongoing dialogue between labor and management, promoting diverse and flexible workstyles, appropriate working hour management, and the effective use of annual leave.

Through these initiatives, we strive to create a work environment in which employees can maintain their physical and mental wellbeing, work with confidence over the long term, and maximize their individual performance. By supporting diverse ways of working and fostering employee engagement, we aim to enhance both employee wellbeing and organizational productivity.

Nabtesco has established systems that enable employees to maximize their performance by allowing them to autonomously and flexibly choose when and where they work. These systems include a flexible working hours system, a work-from-home system, a satellite office working system, and a mobile working system. Through these initiatives, We supports diverse work styles that accommodate employees’ individual needs and circumstances while enhancing productivity and work-life balance.

Nabtesco promotes a work environment in which each employee can autonomously fulfill their role and create value. Appropriate working hours management forms the foundation of this approach and is regarded as an essential initiative for supporting diverse work styles while ensuring employee health and compliance.

To this end, Nabtesco has developed a “Working Hours Management Handbook” that outlines rules and practical examples related to working hours management. In addition, Nabtesco conducts annual e-learning programs on appropriate working hours management to enhance employee understanding and awareness. The Company is also strengthening its management framework through both systems and digital tools, including the introduction of IT-based alert functions and objective time-recording systems.

Nabtesco pays appropriate statutory wages, including overtime premiums, for overtime work in accordance with applicable laws and regulations. The status of annual paid leave utilization and overtime work is regularly reviewed by labor and management and used to help prevent overwork and improve the workplace environment. Nabtesco also ensures appropriate working hours management at its overseas sites in compliance with local laws and regulations.