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Initiatives to realize work-life balance

J. Front Retailing believes that work-life balance is important to keep employees healthy both mentally and physically. For this purpose, we implement the following initiatives.

Initiatives to “reform work styles”

Recognizing the “work style reform” leads directly to realization of the Group Vision, we strive to not only restrict long working hours but also realize “creative and productive work styles” and “employees’ affluent life through work-life balance and the growth of people and companies.” To this end, we promote the reforms of “management,” “systems and rules” and “mechanisms and tools” for operational reforms (streamlining) and proper work styles.

Our initiatives to reform “management” include “providing training to the management line to enhance their awareness” and “reviewing organizations and management systems for appropriate working hours management.” Our initiatives to reform “systems and rules” include “paperless meeting operation” and “thorough implementation of No Overtime Days.”

With respect to the reforms of “mechanisms and tools,” each company promotes the improvement of the environment including a change into a digital office and the adoption of a free address system as well as “promoting the renovation of operations systems” by introducing RPA (Robotic Process Automation) and “innovating the Group ware” to realize efficient and productive work styles.

Systems related to child care and family care

Systems related to child care and family care exceeding statutory limits at Daimaru Matsuzakaya Department Stores and the number of takers in FY2018

System Description No. of takers

Child care

Child care leave

Up to the last day of the month in which the child enters an elementary school (at the longest until the child reaches two years of age under law)

203

Shortened working hours for child care

Up to the last day of the month in which the child enters an elementary school (for children under three years old under law). The “optional working hours system” allows shortened working hours until the child enters a junior high school.

166

Sick/injured child care leave

Paid (Unpaid leave is permitted by law.)

154

Child care support leave

Four days of paid leave for raising children under three years old (No such leave is granted by law.)

21

Maternity leave for spouse

One day of paid leave (No such leave is granted by law.)

7

Family care

Family care leave

Up to a total of one year of leave per subject family member can be taken consecutively or separately any number of times. (Up to 93 days of leave can be taken separately up to three times under law.)

10

Nursing care leave

Paid (Unpaid leave is permitted by law.)

42

Optional working hours system

We adopt a system that allows employees to choose shortened working hours for child care, family care, hobbies to enrich senior life and other reasons.

(Purpose and period: Up to the last day of the month in which the child enters an junior high school for child care, a period in which the employee needs to take care of his/her family member for family care, etc.)

Encouraging Fathers to Take Childcare Leave

The four companies of J. Front Retailing, Daimaru Matsuzakaya Department Stores, JFR Card, and JFR Service from March 2019 introduced short-term childcare leave allowing paid childcare leave to be taken for a short period of time (maximum of two weeks). The introduction of this system has made it easier for male employees to take childcare leave. Short-term leave to support childcare (four days paid leave) and spousal leave for childbirth (one day paid leave) are already in place to allow fathers to actively take part in the birth and raising of their children. These systems provide more than is mandatory according to the law. The short-term childcare leave expands the scope to employees with children under three years old, encouraging them to take over two weeks leave consecutive with the short-term leave to support childcare, the spousal leave for childbirth, and standard paid leave.

Daimaru Matsuzakaya Department Stores is encouraging male employees to take childcare leave, and as of August 2019, 15 have already utilized the system.

Number of Male Employees Who Took Childcare Leave in Fiscal 2018 (Daimaru Matsuzakaya Department Stores)

System

Content

User number

Short-term childcare leave
*Introduced in March 2019

Up to 2 weeks of paid leave for children under 3 years old (Under the current law, employers can offer unpaid leave in such a situation)

15
(As the end of August, 2019; all men)

Short-term leave to support childcare

Up to 4 days consecutive paid leave for children under 3 years old (No legal requirement)

21
(Of which, 2 were men)

Spousal leave for childbirth

1 day of paid leave
(No legal requirement)

7
(All men)

Area Limited Employee System

In light of diversified values and lifestyles of workers, we introduced the “Area Limited Employee System” that allows employees to limit their work areas by their free will. By increasing work options, we aim to build a foundation on which employees can autonomously think of the balance between their career formation and life and act accordingly. Employees can choose to work in one of five areas including Sapporo, Tokyo, Kansai, Chubu and Shizuoka.

Reasons for application for an area limited employee are not restricted and an employee who converted to an area limited employee can return to a regular employee. The number of times of such conversion is not limited. When this system was introduced in September 2017, 696 employees became area limited employees, which accounts for approximately 18.5% of the employees of Daimaru Matsuzakaya Department Stores (including seconded ones). In August 2019, 591 employees converted to area limited employees.

Creation of the status of “dedicated employee”

In order to further empower fixed-term contract employees of Daimaru Matsuzakaya Department Stores and Daimaru Matsuzakaya Sales Associates and secure more stable employment status, we created the status of “dedicated employee” by not only making the employment period indefinite but also improving part of the working conditions.

Specifically, they are entitled to leave allowance*1 and absence deduction*2 like regular employees. When the system was introduced in June 2017, out of a total of approximately 1,800 fixed-term contract employees, approximately 1,600 employees who had met the requirements changed to be employed for an indefinite period at once.

*1 80% of daily amount is paid for the period of sick leave.

*2 60% of daily amount is paid for the period of absence including maternity leave.

Changing work styles

As a holding company, J. Front Retailing strives to change work styles so that employees can create something new. On the occasion of the relocation of the head office in January 2018, we reduced documents by approximately 50% and adopted a “free address system” that allows workers to freely choose their seats. We also promote paperless operations by digitalizing meetings, that is, “seeing meeting materials on a computer screen instead of printing them.”

Meeting space in the head office of J. Front Retailing

Introduction of Teleworking

The five companies including J. Front Retailing, Parco, Daimaru Kogyo, Dimples', and JFR Information Center have adopted teleworking from home in order to build working environments for better productivity and job satisfaction. Allowing flexibility in work allows more efficient work styles. Employees of J. Front Retailing can work from their own or their parent's homes, enabling teleworking when they return for long vacations to their hometowns.

Encouraging the Taking of Paid Leave

The Group is actively striving to promote the taking of consecutive days off to increase the taking of paid leave. Eight statutory holidays can be combined with paid leave as two 10-day or four 5-day consecutive holidays each year. Workers at Daimaru Matsuzakaya Department Stores can use three of their paid leave days as event leave.

Employees reaching the ages of 30, 40, or 50 can take consecutive holidays as refreshment leave. The utilization rate of paid leave in fiscal 2018 at Daimaru Matsuzakaya Department Stores was 44.5%.

Reducing Overtime Work

J. Front Retailing, Daimaru Matsuzakaya Department Stores, Daimaru Kogyo, and Dimples' are reducing overtime by adopting diverse working shifts and a super flexi-time system with no core times. The super flexi-time system allows all employees to adjust their working hours. Outside training or sales work can be attended straight from home with no need to return to the workplace afterward, for a more efficient use of time. Employees engaged in child or family care can match their work styles to their individual circumstances, by adjusting job times in units of hours so that they can attend events or meetings without having to lose an entire day of work.

Other measures include keeping track of individual working times with IC cards, warning on computer screens, and no overtime days. Teleworking is also being considered for use in operating companies, to further reduce overtime.

Average monthly overtime(Daimaru Matsuzakaya Department Stores)

Fiscal 2016

5.2 hours

Fiscal 2017

5.3 hours

Fiscal year 2018

5.3 hours

* Calculated as the prescribed overtime work

Realization of Work-life Balance