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Sustainability

Employment and Labor Relations

[SDGs] 8 DECENT WORK AND ECONOMIC GROWTH

Sound and stable labor relations are an essential foundation for achieving continuous corporate growth.
Toshiba holds labor talks with Toshiba Union, which employees may join, for practical and amicable solutions under three fundamental principles: Labor-management Equality, Mutual Trust and Understanding, and Prior Consultation.

Medium- to Long-term Vision

Toshiba Corporation and Toshiba Union will jointly promote, maintain, and improve our businesses and union member's working conditions in order to achieve stable and orderly labor relations.

FY2019 Achievements

Conducted negotiations and discussions with Toshiba Union.

  • Briefed on an overview of management work style reform, and other matters at the Toshiba Group Labor-management Congress (Two times).
  • Spring Bargaining
  • Revised the Human Resource System with the aim of more appropriately evaluating behavior and achievements, and ensuring fair treatment.

Future Challenges and Approaches

We shall share matters such as business operations and major reorganizations with Toshiba Union and discuss between labor and management changes in working conditions and other labor-related issues. We will continue to hold labor-management talks in accordance with the Labor Agreement, and labor and management will work together to implement measures to prevent the spread of COVID-19 and promote work style reform.

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Policy on Labor-management Relations

Toshiba supports the principles of the Universal Declaration of Human Rights, the United Nations Global Compact, and the OECD Guidelines for Multinational Enterprises, and ensures that its employees have fundamental labor rights, which include respecting freedom of association as a company and the right to collective bargaining.
Cognizant of the fact that formation of a labor union is permitted in Japan, Toshiba Union was established, consisting of employees belonging to the Company. In the Labor Agreement concluded with Toshiba Union, it stipulates that Toshiba Union has the three rights of labor (the right to association, the right to collective bargaining, and the right to act collectively). Toshiba Union was comprised of 15,743 members as of March 31, 2020, accounting for 95.7% of employees*1.
We pay salaries in compliance with the laws and regulations setting the minimum wage in each country. In addition, the payment of bonuses is determined based on consultations between labor and management at Toshiba and its key Group companies. The bonus system reflects the evaluation result of company performance in the amount of bonuses paid, with the aim of rewarding employees for their contribution to the company and fostering a sense of responsibility for company performance.
In order to foster awareness of employee participation in management and contribute to their asset-building efforts, we established the Toshiba Employees Shareholding Association*2, which regularly purchases shares of Toshiba Corporation for assets building purposes. We have introduced a framework for granting restricted stock incentives*3 with the aim of encouraging officers and certain employees who are candidates for succession to the management team to share the same values as shareholders and strengthen the driving force for enhancing corporate value.

  • *1. This percentage refers to the ratio of Union members to regular employees, excluding supervisors, pursuant to the Labor Standards Act. Of the employees stated above, employees (HR, Accounting, Security work, etc.) who are stipulated as non-Union members in the labor agreement are not included in the ratio calculation. Including Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation.
  • *2. Employee participation rate stands at 57% for Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation.
  • *3. Introduced to Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, Toshiba Digital Solutions Corporation, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation and Toshiba Carrier Corporation.

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Relationship with Toshiba Union

Toshiba maintains a good relationship with Toshiba Union, which represents our employees. Management and the union representatives periodically negotiate and discuss employee working conditions and other matters.
At the Toshiba Group Labor-management Congress held every six months, which is attended by executive management including the president, executive officers and presidents of key Group companies, Toshiba discusses Toshiba Group's business policies with representatives of the Association of Toshiba Group Unions, with which the labor unions of Toshiba and Toshiba Group companies in Japan are affiliated.
Toshiba Group companies overseas hold discussions with their labor unions or employee representatives in accordance with the laws and regulations of the countries in which they operate.

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Promoting Labor-management Dialogue

Toshiba and Toshiba Union hold dialogues based on a spirit of mutual trust, mutual understanding and prior consultation in line with our basic philosophy of labor-management equality with the aim of improving labor-management relations and business operations. Management condition is explained on a regular basis through a labor-management council held once every six months and labor-management meetings with top representatives from both parties. In addition, discussions between labor and management are held on a daily basis at the Toshiba Group company level and business site level.
Large-scale transfers of union members and changes in working conditions are also deliberated between labor and management in advance, and these discussions are held with sufficient time given for both parties to agree.
In FY2019, the Human Resource System revisions were discussed from the conceptual stage while changes to the evaluation system based on these revisions and measures to encourage employees to independently develop their careers were explained to Toshiba Union.
Labor-management discussions were held promptly following declaration of a state of emergency in April 2020 due to the spread of COVID-19 with the aim of minimizing contact to the extent possible in order to reduce the risk of infection to employees, customers, business partners and local community. Toshiba Group’s domestic bases reduced the number of business days in April mainly by moving ahead days off originally scheduled for the Tokyo Olympics.
We will continue to hold labor-management talks as appropriate in accordance with the Labor Agreement.

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Employees Data

Employment by Region and Business Domain*4 (as of March 31, 2020)
Region Number of employees Business domain Number of employees
Japan 75,991 Energy Systems & Solutions 15,594
China 11,007 Infrastructure Systems & Solutions 20,077
Asia*5 & Oceania 28,706 Building Solutions 21,936
North America 6,124 Retail & Printing Solutions 20,308
Central & South America 409 Storage & Electronic Devices Solutions 24,494
Europe*6 & Africa 3,411 Digital Solutions 8,755
Total 125,648 Others 14,484
    Total 125,648
Employment by regionEmployment by business domain

Employment Status Change Over Time (Toshiba Group)

Employment Status Change Over Time (Toshiba Group)

Employment by Gender*4 (Toshiba and key Group companies*7, as of 31 March, 2019)

Employment by Gender (Toshiba and key Group companies, as of 31 March, 2019)
  • *4. The number of employees is the sum of the workers who are expected to work or have worked over a year among regular employees and fixed-term employees.
  • *5. Excluding Japan and China.
  • *6. Including Russia.
  • *7. Including Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation.
Employment Status in FY2019 (Joined in April 2020)
Figures in parentheses represent planned figures
  Business Administrative Staff R&D/Engineer Technical Operator Total
Domestic consolidated 170
(150)
810
(800)
60
(50)
1,040
(1,000)
Of which, parent alone, etc.*8 70
(60)
270
(280)
10
(10)
350
(350)
  • *8. Including Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation.

Mid-career employment is carried out when it is deemed necessary for business (FY2019: 400 people on a consolidated basis, including 70 on a parent-alone basis, etc.)
Toshiba Corporation has 3,299 employees with an average age of 44.8 years old, an average length of service of 18.5 years and a turnover rate of 1.5%*9 at Toshiba and its key Group companies*10. The average annual salary is ¥8,675,871. Starting monthly salary in Japan, which accounts for 60% of employees, is ¥215,500, which is 137% of the minimum wage set by law.

  • *9. Retirement based on personal reasons only.
  • *10. Including Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation.

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