Further Enhancing Diversity in the Workplace

Gender-equal Opportunity

Komatsu is working towards creating a work environment that facilitates work success for our employees who are women. Childcare leave and shorter working hours are among the working conditions that would contribute to an environment that facilitates productive careers, particularly for women. In 2007, Komatsu acquired the Japanese Ministry of Health, Labour and Welfare mark designating companies that assist in the growth of the next generation. Since then, the company has advanced discussions on working conditions through the newly launched Panel on Fostering Future Generations. Due to our continuing efforts to expand our childcare support system, we were again granted the mark in 2010.

Since then, we have continued in our efforts, such as increasing childcare leave allowance (maximum three years) in 2011, granting childcare allowance for when a partner is being transferred, and increasing the amount of subsidy for childcare support service expenses through the Cafeteria Plan in 2013.

The number of employees that have taken advantage of the childcare leave system has increased from 74 employees in FY2012 to 85 employees (out of which 7 were men) in FY2013.

In addition, Komatsu has set numeric goals for the number of female employees to hire, the ratio of the number of female employees and the ratio of the number of female managers in its continuing active commitment to expanding female employment. As of April 2014, Komatsu Ltd. houses 1,101 female employees (accounting for 10.5% of the total number of employees), 57 female managers (3.6% of the total number of managers), and two female executive officers, including a subsidiary's president. Komatsu works to boost the ratio of the number of female managers to above 5% by April 2016.

Enhancing Work-Life Balance

Reducing the total number of actual working hours is one of the key aspects in achieving a healthy work-life balance for employees. Komatsu has worked in coordination with labor unions on this issue to formulate numerical targets, which are now set at 2,100 or less working hours per year, and at least 17 days of paid vacation taken per year. The company has brought down to an average level the workload of divisions that are chronically shouldering intense levels of operations by hiring more employees, both newly graduated and experienced, and investing in necessary facilities and equipment. Komatsu has each workplace formulate a concrete Action Plan for seriously considering and addressing working hour management, in order to daily work towards staying within an appropriate number of working hours.

Aside from our efforts to reduce working hours, we are also supporting the achievement of work-life balance for our employees by introducing the “Life Support Leave System” in FY2014. Life Support Leave is separate from regular annual leave, in which employees can take paid time off for personal circumstances such as non-work related illness, pregnancy, childcare, and family-care. An employee is allotted five days of this type of annual leave per year, and may accumulate up to 40 days of annual leave.

Also, in FY2013, we focused on family-care, and have introduced a family-care allowance that can be received during family-care leave to provide financial support. We have also launched an internal website that publishes information on family-care.

Komatsu will continue to work on helping our employees achieve a healthy work-life balance.

Employing Persons with Disabilities

As of April 2013, 2.46% of employees at Komatsu were persons with disabilities. Recognizing the need to enhance its hiring rate of persons with disabilities, in April 2008 Komatsu established the Business Creation Center within the Human Resources Department. The Center is designed exclusively for increasing the hiring of persons with mental disabilities. As of April 2014, 88 people with such disabilities were employed by Komatsu, raising the rate of employment for persons with disabilities compared to the previous year. Komatsu established branch offices of the center in Ishikawa in April 2010,in Osaka and Shonan in December 2010, in Oyama and Ibaraki in February 2011,Koriyama in April 2011,Kanazawa in August 2012 and Manda in Octomer 2012. The staff of the Business Creation Center are currently active in 9 business sites.

Each workplace has advisors on site, who provide training and advice regarding daily work. Instead of having the employees just do work they are given, we conduct a semi-annual goal-setting interview, just as we do with our regular employees, and award an increase in compensation according to the evaluation of individual work performance. In this way we encourage goal-setting and working towards achieving targets, so that we provide an employment opportunity that helps work towards independence and self-support.

With the expansion of our organization, many labor and time consuming tasks that used to be outsourced or done internally has been handed over to the Business Creation Center, which has resulted in heightened efficiency and cost reduction throughout the company.

The active hiring of people with disabilities is one of the efforts in which all of Komatsu Group is investing. We hope to continue to see an even bigger increase in the employment of people with disabilities, and to continue to create a workplace where anyone can do their best.

Elderly Employment

Since the implementation of the 2006 re-employment system, the number of retirement age persons that have been re-employed at Komatsu has been 90% of all who wish to continue working. As of April 2013, the implementation of the system to re-employ all persons who wish to continue working until the age of 65 was established as a basic policy.

In addition, we have introduced the new, “Second-Career Support System” where we provide training opportunities, paid annual leave, and assistance grant for employees who want to pursue a new line of work before the age of 65.

As the ageing population continues to grow in Japan, we believe that an effort to increase the hiring of elderly people is one of the strategies that we as a business must continue to pursue.