The Group advocates compliance with international rules and local laws, etc., and complies with the payment of appropriate salaries to employees under laws and regulations that stipulate minimum wages in each country and the idea of equal pay for equal work. In Japan, the main career track positions who are responsible for core business are divided into national employees and regional employees, and each uses a salary and compensation system according to the role, the size of the position, and performance, etc., so that there is no difference between genders at the same qualification and same job level.

■Basic perspective on dialogue between labor and management

Kamigumi supports and respects the right to freedom of association and the right to collective bargaining, and both Kamigumi and the trade union aim to create a workplace that is comfortable for everyone and build a stable relationship.

■Main initiatives

In order to ensure smooth management and business development, and to improve the working conditions of union members, we listen to different opinions depending on the job type, and hold labor-management negotiations three times a year. In addition, when implementing the introduction and change of various systems, we have established a place for discussion of high-impact items each time, and have established a system that allows employees' opinions to be reflected in management.

■Basic perspective on reducing excessive working hours

In order to develop our business in a sustainable and stable manner, we are working to reduce excessive working hours under the idea that it is important to maintain a working environment where employees can continue to work in a healthy and lively manner both mentally and physically. In addition, we will comply with labor laws and regulations in each country and work to reduce excessive work at each group site, including overseas.

■Main initiatives

We conduct exchanges of opinions and active dialogues between labor and management on reducing working hours, and we are working to reduce excessive working hours. For example, we thoroughly manage working hours as one of our initiatives that takes into account work-life balance. Specifically, we are conducting appropriate management by making efforts to standardize work and eliminate over-reliance on specific individuals, introducing a work management system that helps supervisors understand their employees' working hours in a timely manner to create a mechanism to send an alert before an employee works long hours.

■Basic approach

The Kamigumi Group believes that human resources are the source of value creation and business competitiveness, and since it is human resources who will practice "responding to the demands of an ever-changing business environment" and "taking on challenges that are one step ahead of present-day needs" in the corporate philosophy, we will aim to continuously cultivate human resources with the will and execution ability to boldly take on challenges in response to changes. In addition, we consider the following for human resource development.

• Develop human resources to not only improve corporate performance, but also improve employees' abilities and motivate them by feeling a sense of personal growth
• The fundamentals of human resource development are OJT, job rotation, and self-development
• Off-JT is carried out to create a foundation as a business person at each level and to acquire knowledge and skills that are difficult to obtain completely in OJT
• The guiding principle of development common to all levels is the realization of the "type of human resource sought" as a company employee

<Type of human resource sought>

①Persons who continue to expand their professional fields to increase the intervening value to customers and related parties

②Persons who grow themselves and the people around them by engaging with the people around them while challenging themselves to be aggressive

③Persons who not only focus on the short term, but also grasp, plan, and execute things from a long-term perspective

■Structure

The Human Resources Department of the head office plans and operates common education and training for the Group, such as training by each level starting with young employees and training of global human resources. We plan and implement education and training in each business unit for the acquisition of knowledge and skills specific to each business field.

■Initiatives

①OJT
Based on the logistics know-how we have cultivated since our founding and our domestic and international logistics networks, we will cultivate human resources with expertise and diversity through our experience in a wide range of business fields that handle a variety of cargoes, from small parcels to huge heavy goods.

②On-site training for new employees
In principle, we conduct on-site training for new graduate main career track employees for six months to experience working at the forefront of the site of their assigned branch office. While allowing these employees to experience the on-site capabilities that are our strength, we strive to promote understanding of on-site work, foster safety awareness, and cultivate main career track employees that can be candidates for future executives.

③Training by Job level
We provide step by step training to allow employees to learn the ideas, knowledge, and skills they need to lay the foundation as a business person at each level. In particular, we have intensified training as a follow-up period for young employees up to the third year of joining the Company.

④Fair and equitable evaluation system
We have introduced a management system based on goals, and we hold goal setting interviews, interim interviews, and end-of-year evaluation interviews. We believe that the evaluation system should not be only used for judging fair treatment, salary increases, and promotions, but should also play a role in human resource development through the process of achieving goals. We aim to balance employee growth and organizational performance improvement by aligning our organizational goals with individual goals and working to achieve them. In addition, we have introduced evaluator training so that evaluators can properly evaluate, and provide feedback and guidance.

⑤Overseas training system
In principle, we dispatch employees who have been in the Company for more than five years to overseas local subsidiaries for half a year to carry out practical training. We strive to develop human resources who can respond to globalization by cultivating knowledge, skills, and an international sense through experiencing overseas locations, physical objects, and stakeholders.

⑥Development of next-generation management human resources
With the acceleration of the pace of change in the business environment, we aim to develop management personnel with foresight, leadership, and a sense of mission. From the management level, we will also focus on selective education that aims to cultivate managers intentionally in the medium- to long-term timeline, such as allowing talented people to gain difficult experiences at an early stage.

■Engagement survey implementation

We recognize that employee engagement is one of the essential elements for sustainable improvement of corporate value. To that end, in February 2024, we conducted a companywide survey for the first time to ascertain the status of employee engagement.
In this survey, we measured and analyzed the "expectation-perception gap" that employees in each organization gained through their experiences in the eight areas below.

■Survey summary

The Kamigumi Group demonstrates its cooperation with the international community and its contribution to the local community in its Charter of Corporate Behavior. In our action policy, we respect the culture and norms of the local community, contribute to the development of the local community, and declare that we will promote corporate activities that take into account the region. Based on this recognition, we will contribute to the development of local communities by conducting social contribution activities that contribute to the improvement and expansion of the economic and social infrastructure of the region.