Relationship with Employees

The source of the TonenGeneral Group’s competitive edge is, above all, its people. We have implemented a number of policies to enable our employees to achieve their full potential through their work and attain a good work-life balance.

Basic approach

The TonenGeneral Group considers its employees to be valuable assets and therefore supports them in achieving their full potential. Our human resources policies encourage the hiring of capable personnel and the development of competent leaders by providing a diverse range of job experiences and ample opportunities for education. The Standards of Business Conduct, which sets out the Group’s basic policies, clearly defines the guiding principle in the relationship between the company and employees as follows.

The exceptional quality of our workforce provides a valuable competitive edge. To build on this advantage, we will strive to hire and retain the most qualified people available and to maximize their opportunities for success through training and development. We are committed to maintaining a safe work environment enriched by diversity and characterized by open communication, trust and fair treatment.

Respect for human rights

The Group’s Standards of Business Conduct clearly prohibits any form of discrimination or harassment. We make continuous efforts to maintain a comfortable workplace, free of harassment or human rights issues.
Employees are required to report any incidence of harassment they may witness to their supervisors, a manager, or the Human Resources and General Affairs Department, which also operates a harassment consultation center at the head office in Shinagawa, as well as our refineries in Kawasaki, Sakai, Wakayama and Chiba, that accepts direct complaints, eye-witness reports, and questions on what constitutes harassment in the workplace, and also issues reminders and implements other initial response actions if required. In addition to the harassment consultation center operated by the Human Resources and General Affairs Department, the Group has both internal and external hotlines to facilitate reporting by employees.
We have also designated a total of 86 human rights promotion representatives in our workplaces to raise employee awareness. These representatives receive training in human rights and harassment issues and then conduct annual human rights training sessions in their respective workplaces. These training sessions are for all workplace personnel, from regular, dispatched and contracted employees to staff from contractor companies. In FY2015, 4,005 persons, including staff from Chiba refinery and NUC, participated in human rights training sessions, and 750 persons participated in training sessions for management trainees on harassment in the workplace.

Relevant policy under the Standards of Business Conduct (SBC)

  • Harassment in the Workplace Policy

Diversity

In rapidly changing times, strong creativity and ideas based on diversity are essential for the sustainable development of any company. The Standards of Business Conduct, which sets out the Group’s basic policies, clearly defines and places great significance on diversity, including gender diversity, and the Group respects the individuality of each employee and strives to provide a workplace that will maximize the talents of a diverse workforce.
Female employees of the Group are active in many occupations and positions, including engineering, sales, management, and shift work as refinery operators. In 2015, the Group appointed a female outside statutory auditor to its management team. We also actively recruit female employees. The table below shows the numbers of female employees hired into professional positions over the past three years and their percentage of the total.
In addition, in our efforts to promote the hiring of persons with disabilities, we aim to go beyond simply maintaining the statutory employment rate, and accordingly, the Human Resources and General Affairs Department has assigned a vocational consultant for persons with disabilities, as well as a job coach to provide support for adaptation to the workplace. Through these endeavors, we are supporting the continued hiring and career development of persons with disabilities and promoting understanding throughout the Group.

Relevant policy under the Standards of Business Conduct (SBC)

  • Equal Employment Opportunity Policy
Number of employees*1
2014 2015 2016
Number of employees 3,512*2 3,383 3,393
  • *1Includes consolidated subsidiaries as of December 31
  • *2The number of employees has increased by 591 from December 31, 2013, mainly due to the consolidation of MOC Marketing G.K., Kyokuto Petroleum Industries, Ltd., and Toyo Sekiyu Hanbai K.K.
Number of employees hired into professional positions*3
Total number of employees hired into professional positions (2014–2016) Number of women Percentage
Marketing, administrative and general 28 11 39%
Engineering 47 8 17%
Total 75 19 25%
  • *3Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation
Ratio of employees with disabilities(%)
2013 2014 2015 2016
TonenGeneral Sekiyu 2.13 2.06 2.12 2.28
EMG Marketing 2.17 2.12 2.92 2.72
Tonen Chemical 1.91 1.96 2.02 3.09
NUC 1.67 1.16 2.24 2.20
Chuo Sekiyu Hanbai 0.95 0.85 1.71 2.35
  • Statutory employment rate: 1.8% (until 2012); 2.0% (from 2013)
  • Note: Percentages as of June 1 for each year
Attrition rate for new graduates within first three years of employment*4
2011 Hires 2012 Hires 2013 Hires
Attrition rate within first three years of employment 5.8% 2.0% 3.1%
  • *4Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation

Promoting the Active Participation of Women in the Workforce

As stated in the Equal Employment Opportunity Policy and the Harassment in the Workplace Policy set forth in the TonenGeneral Group’s Standards of Business Conduct, the TonenGeneral Group administers its personnel policies, programs and practices in a nondiscriminatory manner in all aspects of the employment relationship, including recruitment , hiring, work assignment, promotion, transfer, termination, selection for training, evaluation, and compensation; and prohibits any form of harassment in any company workplace. We also offer work arrangements that help to meet the needs of our diverse workforce in balancing work and family obligations. In this way, we endeavor to create a work environment that enables female employees to achieve their full potential.

Employee makeup*
2014 2015
Average age 41.5 40.6
Average number of years of service 19.1 17.8
Number of female employees 239 260
Percentage of female employees 8.9% 8.8%
Number of managerial positions occupied by female employees 62 62
Percentage of managerial positions occupied by female employees 5.2% 4.8%
  • *Data applies to employees of TonenGeneral Group companies TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation.

Women taking on active roles

Work-life balance

The TonenGeneral Group recognizes how important maintaining a healthy work-life balance is to employees and has systems in place to support them.

Work-parenting balance

In accordance with the Act on the Advancement of Measures to Support Raising the Next Generation, passed in 2005, TonenGeneral Sekiyu K.K. and EMG Marketing Godo Kaisha formulated an action plan to help employees achieve a work-parenting balance and have been establishing systems to support the plan. The Ministry of Health, Labor and Welfare has recognized the actions these companies have taken to support the raising of future generations by certifying them as having met its work-parenting balance standards and allowing the use of its “Kurumin” certification mark, shown at right.
We support employees in balancing their work and lives by encouraging them to take advantage of our flextime system. Furthermore, we have made progress at each refinery in reducing overtime through measures such as “no overtime” days.

“Kurumin” certification mark
Paid vacation

A maximum of 25 paid vacation days are granted to employees depending on their length of service, and employees throughout the entire Group are encouraged to take all of their paid vacation days. As a result of our improvement in operational efficiency, we have consistently ranked high among large companies in Japan in terms of the numbers of days of paid vacation both offered and taken and the ratio of paid vacation taken.

Annual paid vacation*1
2013 2014 2015
Paid vacation offered (days) 23.1 22.6 22.5
Paid vacation taken (days) 21.8 21.0 21.4
Ratio of paid vacation taken (%) 94.4 92.6 95.0
  • *1Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation
Annual actual overtime

Annual actual overtime has remained at between 18 and 20 hours per employee per month. We are striving to further reduce these hours through operational improvement projects and by introducing and establishing “no overtime” days.

Overtime*1(Hours/month/person)
2013 2014 2015
TonenGeneral Group average overtime 18.8 19.2 19.5
  • *1Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation
Total annual actual working hours

The average of total annual actual working hours, including actual overtime and paid vacation, was 2,056.2 hours for all industries in fiscal 2014, according to the 2015 General Survey on Working Hours conducted by the Institute of Labor Administration, and 1,851 hours for the Group in calendar year 2015. Using this point of comparison, we believe we are providing a working environment in which employees can comfortably achieve a healthy balance between work and life.

Total annual actual working hours*1(Hours)
2013 2014 2015
TonenGeneral Group average total annual actual working hours 1,847 1,850 1,851
  • *1 Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation
Nursing care leave

Employees with family members who require nursing care may take nursing care leave of up to an aggregate total of 365 days. The system flexibly accommodates a variety of circumstances, allowing employees to take leave for consecutive days, single days or by the hour.

Number of employees who took nursing care leave*1
2013 2014 2015
Men 2 2 2
Women 0 0 1
Total 2 2 3
  • *1Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation
Child care leave

The Group offers longer child care leave than legally required, allowing employees at their discretion to stay at home until their child reaches two years of age. An increasing number of male employees have been taking paternity leave. Furthermore, we have established a comprehensive childrearing support system, which includes permitting shorter workdays for employees with children through the fourth grade and granting partially paid time off to care for sick children.
To further support our employees in more effectively balancing work and life, and in an effort to promote the use of related systems, we have created an online reference guide which is accessible at any time and includes information about the content and application procedures for the systems.

Number of employees taking child care leave*1
2013 2014 2015
Men 5 6 11
Women 10 10 10
Total 15 16 21
Number of employees working reduced hours*1
2013 2014 2015
Men 0 0 0
Women 7 8 8
Total 7 8 8
  • *1Total for TonenGeneral Sekiyu K.K., EMG Marketing Godo Kaisha, and Tonen Chemical Corporation
Systems and programs that support work-life balance

Human resource development

Based on the belief that the source of the Group’s competitive strength is, above all, its people, we have implemented an evaluation and human resources development system to help our employees grow and achieve their full potential through their work. The system comprises a number of human resources-related elements, such as hiring, allocation and development planning, education and training, and performance evaluation.

Structured evaluation and development program
Hiring Switch to centralized Group hiring for professional positions
  • Hire individuals for the Group instead of each division
Allocation and development planning Introduce a company-wide structure for allocating human resources
  • Develop human resources with an understanding of the integrated management of production and sales
  • Further promote job rotation across divisions
Education and training Construct a new training system tailored to the TonenGeneral Group
  • Cultivate new values
  • Develop leaders who can open new avenues
Performance evaluation Performance evaluation based on new values
  • Promote the embodiment and dissemination of TonenGeneral Group values through selfevaluations and discussion with supervisors

Evaluation system

Under our evaluation system, managers and employees share responsibility for managing the progress of employees’ short-term performance goals and creating mid- to long-term career plans, as well as developing and implementing training plans through effective, ongoing communication. Fair and objective performance evaluations are vital for human resource development. Multiple perspectives are therefore applied by having several supervisors, engaged in similar types of work, confer on employee evaluations to eliminate any potential personal bias. The TonenGeneral Group applies creative methods to consistently encourage superior performance and fairly evaluate and reward results. Our evaluation standards emphasize each individual’s contribution to the team in addition to the progress employees make. Evaluators seek input from multiple sources to arrive at a comprehensive and objective evaluation of employee performance. To encourage the acquisition and development of specialized knowledge, employees are asked to set personal business goals and development plans aligned with the goals of the company and to frequently review progress with their supervisors, who in turn provide ongoing feedback and coaching.
Additionally, the evaluation system calls for periodic gatherings of supervisors for the purpose of reaching a consensus on details related to the development of subordinates and personnel allocation plans.
These processes are applied to all employees, both male and female, to ensure fair evaluation and equitable treatment.

Training system

Our training system consists of a number of programs, including the Leadership Program for each job position and the Individual Effectiveness (IE) Program to improve the skills required of each individual. In contrast with short-term intensive programs, our Leadership Program is designed to steadily reinforce and strengthen skill acquisition over an extended period by incorporating a training camp format and involving leading business schools in Japan. We also provide opportunities for growth for the younger generation through assignments at our overseas offices, and assignments to other companies using our personnel loan program. A distinctive feature of our IE Program is that employees take the initiative to attend courses for work-related skills they want to develop in consultation with supervisors, further reinforcing the key TonenGeneral Group values of self-reliance and self-determination.
Generational turnover is another issue we are addressing as many employees who joined the company around the same time approach retirement. Consequently, the Group is introducing a new educational system that will effectively accelerate the abilities of the next cohort of employees to seamlessly replace those who are retiring. This system offers several thousand course units related to areas such as operations, maintenance and engineering. Beyond simply introducing the system, we have assigned experts from various company divisions to serve as instructors to help evolve and expand the program. This carefully designed training program accelerates the upgrading of skills by each subsequent cohort of employees.

FY2016 Training programs

Communication with employees

To ensure that Group management and employees share common values as we work toward the achievement of our goals based on the Group’s mission, we develop annual communication plans for management members to disseminate information to all employees via email, our intranet and video delivery. We also hold employee forums on a regular basis to provide an opportunity for face-to-face interaction between management and employees. From February to March 2016, employee forums, in which members of management addressed employees directly, were held at 14 of our business sites across Japan, and were attended by a total of around 2,200 employees, who freely engaged in discussions and the exchange of opinions with management.

Employee forum

Relevant policy under the Standards of Business Conduct (SBC)

  • Open Door Communication Policy

VOICE

Flexible working style for work-life balance

Sosuke Shiba Law Department

Since the birth of our first child in February 2016, I have utilized the company’s child care leave and shortened working hours for child care. Using both of these systems allows employees with children less than one year old to reduce their working time by up to three hours per day, and then by up to two hours per day until the children are in the fourth grade of elementary school.
In the Law Department, where I work, employees are encouraged to pursue work-life balance, irrespective of gender. One of my colleagues is currently taking a oneyear child care leave.
With shorter working hours, I feel my work is more concentrated. Leaving the office early allows me to spend more time with my family, and this gives me additional motivation to put forth my best efforts at work the next day.
Many companies are expanding their child care support initiatives, but there are still not many that have systems in place that their employees can actually use and where employees can receive support and understanding in the workplace. I really appreciate TonenGeneral’s systems, and I’m grateful to my colleagues and supervisors for their support.