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A Positive Work Environment

Last Updated: 2023.02.14
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Fast Retailing strives to offer a healthy and safe work environment for every employee. The topic of healthy and safe working environments is covered in the Fast Retailing Code of Conduct, which states, "We shall not commit a wrongful act or act in bad faith at work and shall maintain a safe working environment."

Achieve Successful Health and Productivity Management―Occupational Health and Safety Initiatives

Inspired by the Fast Retailing Group Health and Safety Declaration, we actively promote the health of each individual employee and provide working environments in which all employees can work comfortably. We also strive to promote the health of people across society through our company products and activities. As a result of these efforts, in spring 2022, the Fast Retailing Group was recognized as a 2022 Certified Health and Productivity Management Outstanding Organization (Large Enterprise Category) under the joint program operated by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi. The system rewards outstanding companies that consider employees' health and productivity management from a business-management perspective and strategically implement initiatives to help maintain and promote health.

Fast Retailing Group Health and Safety Declaration

Fast Retailing believes that it is our company's responsibility to ensure the physical and mental health and safety of each and every employee. With the aim of becoming the most respected company worldwide for health and safe in the workplace, we have adopted a Health and Safety Policy and Eight Health and Safety Principles.

Management Framework for Occupational Health and Safety

Fast Retailing has established Wellness Centers in Japan. These offer initiatives and support for our employees, and are staffed by more than 120 occupational health physicians, public health nurses and counselors, as well as relevant departments at Fast Retailing. In addition, Fast Retailing Wellness Centers conduct training on occupational health and safety for company employees. For instance, we conduct training on mental health and how to prevent workplace accidents for newly-appointed leaders, like store and area managers, and new graduates. Each store in Japan also appoints a health supervisor based on the law, and we provide online training to promote safety and health activities at the store. Every month, our Wellness Centers convene the Fast Retailing Occupational Health and Safety Committee to discuss issues and solutions related to health management, and employee wellbeing at each office in Japan. Furthermore, to develop health and safety activities on a global basis, we have appointed a global health supervisor in each country and region. We proactively visit each site to survey the workplace environment, investigate conditions on the ground, confirm safety measures, and offer advice on health and safety.

Roppongi Head Office Wellness Center

Ariake Head Office Wellness Center

Measures to Prevent Workplace Accidents

Fast Retailing has set up an occupational accident prevention team across departments and promotes measures to prevent workplace incidents. We conduct assessments based on groupwide risk assessment standards, identify various risks, and implement appropriate countermeasures. Specifically, in order to address potential risks relating to the equipment used in our stores, we are proactively encourage using equipment and tools with a high degree of safety. For example, we introduced safer sewing machines and provided safety cutters for unpacking cardboard boxes. In our warehouses, we are working to improve safety by introducing safer machinery and equipment, and by limiting certain areas as restricted area that minimize risk when using automatic equipment, forklift trucks, and other machinery. In both stores and warehouses, we are extending safety and health education for all employees, sharing cases of past accidents, and providing training on identifying risks. In addition, we share examples of near-miss accidents (cases where people felt there as a risk of accidents occurring). If an occupational accident occurs, we require swift reporting of the incident to our headquarters. We analyze the cause of the accident and formulate countermeasures, which are communicated around the company to prevent similar occupational accidents reoccurring.
Fast Retailing strives to prevent workplace accidents through these activities and to reduce the Lost-Time Injury Frequency Rate (LTIFR).

Lost-Time Injury Frequency Rate (LTIFR) (Fast Retailing Group in Japan)*1

(the number of lost-time injuries occurring in a workplace per million hours worked) *2

Fiscal 2020 Fiscal 2021 Fiscal 2022
Employees 1.03 1.04 0.86

*1 LTIFR is the rate of accidents resulting in lost work time on four days or more of absence is assumed.
*2 LTIFR data has been verified by SGS Japan Co., Ltd. to ensure reliability.

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Initiatives on Health Management

Fast Retailing works to maintain and improve the physical health of our employees. Recently, we promote in-house epidemic prevention measures to prevent the spread of COVID-19. We coordinate regular health examinations for employees including those posted overseas, with follow-up support provided by our team of professional physicians and public health nurses, where required by examination results. In addition, we subsidize the cost of vaccinations for our employees in Japan. To reduce the number of smokers, in Japan, we have also eliminated smoking areas at the headquarters and subsidized the costs of smoking cessation outpatient clinics and smoking cessation aids. We also communicate about health issues regularly to engage and encourage employees in their autonomous health management.

Mental Health Care Initiatives

Fast Retailing is strengthening its mental health care initiatives to promote the mental health of its employees. Specifically, we provide counselling opportunities with industrial counsellors, check the stress levels of all employees in Japan once year, and help employees who have taken a leave absence to return smoothly to work.
We are focusing particularly on the annual stress checks for all employees in Japan. We aggregate and analyze the results of the stress tests by department, identify any issues, and implement measures to improve individual workplace environments. To confirm the scale of improvement and the effectiveness of the measures implemented to the individual, we follow up with another stress test within the same year for departments that have multiple issues.

Stress Check Inspection Rate

Year 2020 2021 2022
Inspection Rate 94.5% 98.0% 97.0%

Creating Jobs Around the World

Fast Retailing employs approximately 110,000 employees worldwide (as of August 2022). In recruitment activities, we comply with local legislation and prohibit child labor, forced labor and compulsory labor. We prevent child labor by thoroughly checking the person's age at time of employment. In order to prevent forced labor, Fast Retailing does not retain any important staff personal documents such as passports, restrict the freedom of movement of staff, or require staff to stay at or pay for accommodation owned or controlled by Fast Retailing. In addition, we stipulate appropriate wage and benefit calculations in our pay requirements for staff based on local standards and legislation covering issues such as minimum wages.

Fair Performance Evaluations and Compensation

Fair Salary Structure

Fast Retailing ensures employees wage payments are made in full on-time and that legitimate deductions are indicated on pay slips.

Fair Performance Evaluations

Fast Retailing has adopted a fair and standardized global employee performance evaluation and compensation system. We have also adopted a grading system that defines the skills and requirements necessary for each position. A standard evaluation guideline, introduced in fiscal 2015, helps us avoid national, regional, or organizational bias.

Under these systems, Fast Retailing employees receive compensation (basic pay, bonuses, promotions) according to their performance. Our employees meet with superiors twice annually to set goals. Superiors provide performance evaluations and feedback to employees every six months, and the results of these sessions affect promotions and bonuses. To ensure fairness, managers from other departments also participate in an employee's performance evaluation. In October 2017, we added a 360-degree evaluation system that incorporates feedback from the employee's co-workers, subordinates, co-workers from other departments, and others.

Benefits and Defined Contribution Pension Plan

Fast Retailing offers a variety of benefits to our employees. In addition to a full range of insurance (health, pension, workplace accident, unemployment), we offer an employee stock ownership plan, employee discounts, employee housing, and a number of different regional allowances. Fast Retailing Group employees in Japan may participate in the Fast Retailing 401(k) plan, a defined contribution pension plan.

Reducing Working Hours

Fast Retailing respects international standards and national laws and regulations concerning maximum working hours, minimum breaks and rest periods. Team leaders in each division manage employees' working hours on a monthly basis. Fast Retailing pursues work styles that do not rely on overtime.

Monitoring and Corrective actions for Work-Hour Reduction at the Fast Retailing Group in Japan

  • Strengthening management supervision of overtime by requiring consistent clocking in/out.
  • Roppongi Head Office to turn office lights out at 6:00 PM to encourage employees to return home.
  • Turning office lights out at 6:00 PM at Roppongi Head Office and Ariake Office to encourage employees to return home.
  • Human Resources Department monitors individual employee working hours and time off at each department on a quarterly basis. Human Resources Division and Wellness Centers meet with employees (and their superiors) who chronically record excessive work hours, taking steps to reduce time worked. Supervisors are required to take and report action to review workload or re-prioritize tasks for employees with excessive work hours.
  • Wellness Centers and Human Resource division conducts work style surveys and stress checks to identify any issues in working hours.

Improving Employee Satisfaction

Fast Retailing strives to create work environments and a culture that enables employees to grow and contribute over many years. Since January 2019, Fast Retailing has conducted employee satisfaction surveys to cover all companies in the Group as one measure to improve satisfaction.

Initiatives to Improve Employee Satisfaction

  • Recognition for years of service: Employees receive recognition for years of service for every10, 20, and 30 years of employment.
  • Special awards: Individuals and departments who deliver outstanding results receive special awards and recognition.
  • Family Day: Each year the Fast Retailing Group holds a special event for families and employees at the Yamaguchi headquarters and Ariake office*.
  • Benefit packages: The Fast Retailing Group Health Insurance Organization in Japan offers benefits to employees that include discounts for fitness club memberships, amusement parks, etc.

*The event has been temporarily suspended to prevent the spread of COVID-19.

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