Personnel Policy and Performance Appraisal System

For a business, it is said that people, goods, money, information and time are valuable assets and resources, but above all, people—the employees of Komatsu Group companies—are an irreplaceable asset for the Group. Komatsu recognizes the role of the personnel system in enhancing the quality and reliability of the company's human resources. It therefore endeavors to foster a work environment with opportunities for challenges and creativity. The company works to maximize the sum of trust given to it by its employees.

Global Personnel Policy

Personnel systems reflect the history and culture of each particular region. It is therefore important to recognize and understand those differences.
In accordance with the basic policy outlined below, the members of the Komatsu Group are creating a personnel system tailored to the needs and reflecting the circumstances of each particular region.

  1. We shall respect each employee's fundamental human rights, inherent personality, individuality, and legally protected privacy.
  2. We shall treat and appraise each individual employee in a fair and impartial manner. We shall not discriminate against any employee on the basis of nationality, race, religion, age, gender, physical or mental disability or other legally protected attributes that are irrelevant to his or her performance. We shall vigorously endeavor to promote equal opportunities for employment and eliminate harassment in the workplace.
  3. We shall endeavor to provide employees with workplaces where they can seek a good balance between their private and professional lives, while effectively accomplishing their respective tasks with satisfaction and pride.
  4. We shall endeavor to design and administer the system of human resource management in a manner that is most reasonable and persuasive to the employees. We shall make such systems open and clearly explain them to the employees to the maximum extent practicable.
  5. Komatsu Group companies shall comply with all applicable laws and regulations governing employee rights in the jurisdictions in which they operate, and faithfully accommodate, wherever applicable, conversations or discussions with employees or their representatives.
  6. We shall not tolerate child labor or forced labor.
  7. Komatsu Group companies shall endeavor to offer to their respective employees those terms and conditions for employment that are sufficiently competitive in their respective regions.

Personnel System that Accurately Reflects Employee Abilities and Achievements

Komatsu recognizes the importance of providing an appropriate workplace environment to its employees where everyone can have feelings of pride and rewarding in what they do. To this end, regardless of age, gender or nationality, Komatsu has always strived to accurately evaluate the performance of employees as individuals, incorporating employees' achievements and abilities into its personnel system as the basis for fair evaluations.

Fair and Appropriate Evaluation

For a company to create a workplace environment where employees can work without undue worries, it must treat employees fairly. As described above, Komatsu's personnel system takes into account employees’ abilities and achievements. Therefore, we need to ensure that employee evaluations are fair and appropriate for each employee. For this purpose, the company organized evaluator trainings for all managers on how to conduct evaluations, and also provides opportunities for non-managerial employees who are to be evaluated by them through a variety of stratified educations. An evaluation committee has been established jointly with the labor union at each business unit to confirm that evaluations are conducted properly. In addition, Komatsu provides individual feedback on evaluations to managers and to non-managerial employees, and has also set up a consultation office through which employees can express complaints and concerns.

Condition of the Labor Union

Komatsu has signed the “Global Compact” and considers “freedom of association” and “right to collective bargaining” which are advocated in this United Nations initiative to be basic human rights that we need to respect as a corporation.

Komatsu has a labor contract with the Komatsu Labor Union, which is organized by approximately 9,500 employees and 7 branches in Japan. The Komatsu Labor Union is a member of “All Komatsu Workers Union” and “Japanese Association of Metal, Machinery and Manufacturing Workers.” Each of 17 consolidated subsidiaries and affiliated companies in Japan has a labor contract with its each labor union joining “All Komatsu Workers Union.” They are organized by approximately 7,200 employees of subsidiaries and affiliated companies.

Also, in each country, Komatsu complies with laws related to the rights of laborers and responds with integrity to dialogue and discussions with individual employees and their representatives.

DATA

  • All data except for (5) Number of employees (Komatsu Group) is data for Komatsu Ltd.

Numbers of employees for (11) are as of April 1 and all other numbers shown are as of the end of the year, except as otherwise noted.

(1) Number of employees

  FY2014 FY2015 FY2016
Total

10,416

10,449

10,371

Male

9,325

9,295

9,203

Female

1,091

1,154

1,168

(2) Average age

  FY2014 FY2015 FY2016
Total

38.3

38.5

38.9

Male

38.4

38.5

38.8

Female

38.0

38.5

38.9

(3) Years of continuous employment

  FY2014 FY2015 FY2016
Total

14.1

14.3

14.6

Male

14.4

14.6

14.8

Female

11.4

12.0

12.4

(4) Annual total remuneration (average)

(JPY)

  FY2014 FY2015 FY2016
Total

7,191,383

7,111,071

7,162,627

(5) Number of employees (Komatsu Group)

  FY2014 FY2015 FY2016
Consolidated

47,417

47,017

47,204

Temporary

1,175

1,057

946

Non-Japanese
(non-consolidated)

59

72

83

Non-Japanese
(consolidated)

28,945

28,561

29,577

(6) Number of employees by age

  Total Male Female
Under 30

2,382

2,071

311

30–39

3,226

2,986

240

40–49

2,702

2,321

381

50–59

2,061

1,825

236

Total

10,371

9,203

1,168

(7) New graduates employment

  College graduate Junior college graduate High-school graduate
Year (April) Total Male Female Total Total
2015

195

174

21

31

71

2016

161

133

28

21

52

2017

166

137

29

18

72

(8) Mid-career employment

  Total College
male
College
female
Other
male
Other
female
April 2014–March 2015

125

58

12

37

18

April 2015–March 2016

25

10

4

6

5

April 2016–March 2017

24

5

10

4

5

(9) Employee turnover (April 2016–March 2017)

  Total Male Female
Number of employee turnover

96

73

23

(10) Retention of new employees

  Male Female
New employees (April 2014)

285

50

Enrollment (April 2017)

276

48

Turnover rate: 3.3%; 9 males, 2 females

(11) Diversity of management

  Female Male % of females Non-Japanese
Management position

92

1,573

5.5%

9

General managers

8

359

2.2%

0

Directors and officers

2

53

3.6%

5

Executive officers

2

46

4.2%

5

Managers, directors and officers

94

1,626

5.5%

13