toshiba’s challenge on ageing - eu-japan

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Toshiba’s Challenge on Ageing K T i Kazuo T anigawa Sub-Committee on International Labor Committee on Employment, Japan Business Federation © 2012 Toshiba Corporation Oct. 9 th , 2012

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Page 1: Toshiba’s Challenge on Ageing - EU-Japan

Toshiba’s Challenge on Ageing

K T iKazuo TanigawaSub-Committee on International Labor Committee on Employment,Japan Business Federation

© 2012 Toshiba Corporation

Oct. 9th, 2012

Page 2: Toshiba’s Challenge on Ageing - EU-Japan

Ⅰ. Demographic trends in JapanⅡ. Regulations on retirement and

the national pension in Japanthe national pension in JapanⅢ. Actions on employing the elderly at Toshiba

◇ Extension of retirement system◇ Special-purpose company for senior employees◇ Special purpose company for senior employees◇ Solutions mechanism in Toshiba’s labor relations

Ⅳ Requests to leaders: governmentⅣ. Requests to leaders: government,labor and management

2

g

Page 3: Toshiba’s Challenge on Ageing - EU-Japan

Demographic Trends in JapanDemographic Trends in Japan

Page 4: Toshiba’s Challenge on Ageing - EU-Japan

Demographic Trend by AgeFalling total and working-age population, Increasing non-working-age population

63.3%12,000

14,000 65 and over

0-14

15-64

Working age rate

51.5%10,000

5 6

48.5%

6 000

8,000

Non-working age rate36.0%

4,000

6,000 Birth-14 years old65 and older

0

2,000

4

01950 1960 1970 1980 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Source: Ministry of Public Management, Home Affairs, Posts and TelecommunicationsNational Institute of Population and Social Security Research

Page 5: Toshiba’s Challenge on Ageing - EU-Japan

A Changing Population: People Over 65 Years OldIncreasing at a faster rate than in Europe and the US

39.640

J

30

35

JapanItalyGermany

23.125

30y

FranceUnited KingdomUnited States

15

20United States

10

15

4.9

0

5

5Source: OECD Factbook 2009

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Page 6: Toshiba’s Challenge on Ageing - EU-Japan

Changes in Life ExpectancyLonger in Japan than in Europe or the US

83.0

85.0

Japan

8 9

81.0

83.0 ItalyUnited KingdomUnited States 78.9

76 177 0

79.0

United StatesFranceGermany

76.1

75.0

77.0

72.0

71.0

73.0

67.8

67 0

69.0

6

67.01960 1970 1980 1990 2010

Source: OECD Health Data 2012

Page 7: Toshiba’s Challenge on Ageing - EU-Japan

Changes in Total Fertility RateJapan’s total fertility rate remains low

3 65

4.00France

3.653.50

FranceUnited KingdomSwedenUnited States

3.00

United StatesItalyJapanG

2.13

2.50Germany

2.001.75 1.54

2.00

1.361.39

1 00

1.50

7Source: Annual Report on Health, Labor and Welfare 2012

1.001950 1960 1970 1980 1990 2000 2011

Page 8: Toshiba’s Challenge on Ageing - EU-Japan

R l ti ti t dRegulations on retirement and

the national pension in Japanthe national pension in Japan

8

Page 9: Toshiba’s Challenge on Ageing - EU-Japan

Regulations on retirement and the national pension in Japan

Early post-war years: retirement age of 55 55 years old

Policy on employing older people Pension entitlement

1959: Retirement age of 60 became policy

1957: Employees’ Pension Insurance extended to 60

E l ’ P i I1959: Retirement age of 60 became policy

of Japanese Confederation of Labor Unions

1973: Employment Countermeasures Act

Employees’ Pension Insurance extended from 1957 to 1973

1973: Employment Countermeasures Act recommended later retirement

1986: Law Concerning Stabilization of Employment of Older Persons established retirement at 60 as aguideline

60 years oldg

1990: Employment after retirementestablished as a guideline

1998: Mandatory retirement age of 60

9

1998: Mandatory retirement age of 60

Page 10: Toshiba’s Challenge on Ageing - EU-Japan

Regulations on retirement and the national pension in Japan

60 ld

Policy on employing older people Pension entitlement

2000: Law Concerning Stabilization of

60 years old

2001: Fixed-amount component t d d t 65

Employment of 0lder Persons established guideline on securing employment to 65

Fixed-amount component extended from 2001 to 2013

extended to 65

2006: Employment to 65 established as a gradual requirement e te ded o 00 to 0 3

Fixed-amount;65 years old

Earnings-related;60 years old

gradual requirement

2013: Earnings-related component extended to 65

E i l t d t

2013: Employment of all applicants to 65established as a responsibility

Earnings-related component extended from 2013 to 2025

Fixed-amount; Earnings-related;

10

Fixed amount;65 years old

Earnings related;65 years old

Page 11: Toshiba’s Challenge on Ageing - EU-Japan

Actions on employing the elderly at ToshibaActions on employing the elderly at Toshiba

Page 12: Toshiba’s Challenge on Ageing - EU-Japan

Extension of Retirement SystemPattern 1

f

E t d d d ll t 60 th h j i t lt ti

Retirement age of re-employment was extended to 60,ahead of the extension of entitlement to a pension.

Extended gradually to 60 through joint consultation

Employment term

Re-employment term: one-year contract basis

Entitlement to a pension

60

59

Entitlement to a pension

57

58

59

55

56

57

12

years old

1965 1966 1967 1968 1969 1970 1971 1972 1973 1974

Page 13: Toshiba’s Challenge on Ageing - EU-Japan

Pattern 2Extension of Retirement System

f

E t d d d ll t 60 th h j i t lt ti

Retirement age of re-employment was extended to 60,ahead of the extension of entitlement to a pension.

55 56 57 58 59 60 61 62 63 64 65

1965 ○ △ △ △ Entitlement to a pension

Extended gradually to 60 through joint consultation

1965 ○ △ △ △

1966 ○ △ △ △ △ △

1967 ○ △ △ △ △ △

Entitlement to a pension

1967 ○ △ △ △ △ △

1968 ○ ○ △ △ △ △

1969 ○ ○ △ △ △ △

1970 ○ ○ ○ △ △ △

1971 ○ ○ ○ ○ △ △Re-employment: one-year

contract basis1972 ○ ○ ○ ○ ○ △

1973 ○ ○ ○ ○ ○ ○R ti t

contract basis

13

1974 ○ ○ ○ ○ ○ ○Retirement

Page 14: Toshiba’s Challenge on Ageing - EU-Japan

Extension of Retirement System: Re-employment at Over 60Pattern 1

E t bli h d b i f th t i f titl t t i

A re-employment system for employees over 60 was established,ahead of the extension of entitlement to a pension.

Established on basis of the extension of entitlement to a pension

Employment term

Entitlement to fixed-amount component of pension

Re-employment term: one-year contract basis

65Entitlement to earnings-related component of pension

p p

62

63

64

60ld

61

62

14

years old

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Page 15: Toshiba’s Challenge on Ageing - EU-Japan

Pattern 2Extension of Retirement System: Re-employment at Over 60

E t bli h d b i f th t i f titl t t i

A re-employment system for employees over 60 was established,ahead of the extension of entitlement to a pension.

Established on basis of the extension of entitlement to a pension55 56 57 58 59 60 61 62 63 64 65

2000 ○ ○ ○ ○ ○ ○2001 ○ ○ ○ ○ ○ ○ △ E titl t t ld i2001 ○ ○ ○ ○ ○ ○ △2002 ○ ○ ○ ○ ○ ○ △2003 ○ ○ ○ ○ ○ ○ △2004 ○ ○ ○ ○ ○ ○ △ △2005 ○ ○ ○ ○ ○ ○ △ △2006 ○ ○ ○ ○ ○ ○ △ △

Entitlement to an old-age pension;Fixed-amountRetirement

2006 ○ ○ ○ ○ ○ ○ △ △2007 ○ ○ ○ ○ ○ ○ △ △ △2008 ○ ○ ○ ○ ○ ○ △ △ △2009 ○ ○ ○ ○ ○ ○ △ △ △2010 ○ ○ ○ ○ ○ ○ △ △ △ △2011 ○ ○ ○ ○ ○ ○ △ △ △ △

Entitlement to an old-age pension;Earnings-related component

2011 ○ ○ ○ ○ ○ ○ △ △ △ △2012 ○ ○ ○ ○ ○ ○ △ △ △ △2013 ○ ○ ○ ○ ○ ○ △ △ △ △ △2014 ○ ○ ○ ○ ○ ○ △ △ △ △ △2015 ○ ○ ○ ○ ○ ○ △ △ △ △ △2016 ○ ○ ○ ○ ○ ○ △ △ △ △ △2016 ○ ○ ○ ○ ○ ○ △ △ △ △ △2017 ○ ○ ○ ○ ○ ○ △ △ △ △ △2018 ○ ○ ○ ○ ○ ○ △ △ △ △ △2019 ○ ○ ○ ○ ○ ○ △ △ △ △ △2020 ○ ○ ○ ○ ○ ○ △ △ △ △ △2021 ○ ○ ○ ○ ○ ○ △ △ △ △ △

Re-employment

15

2021 ○ ○ ○ ○ ○ ○ △ △ △ △ △2022 ○ ○ ○ ○ ○ ○ △ △ △ △ △2023 ○ ○ ○ ○ ○ ○ △ △ △ △ △2024 ○ ○ ○ ○ ○ ○ △ △ △ △ △2025 ○ ○ ○ ○ ○ ○ △ △ △ △ △

Page 16: Toshiba’s Challenge on Ageing - EU-Japan

Special-purpose company for senior employeesRe-employment system for employees,

who are healthy and motivated to work Special-purpose company was established in light of the ageing working population.

To secure technologically and technically highly-skilled workers at a time of a declining birth rate and ageing populationpopulation

A re-employment system was established for seniors who arehealthy enough, motivated enough and whose job performanceis good enough.

Re-employment to 65 was established in relation to extension of entitlement to a pension, based on the company’s needs.

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Page 17: Toshiba’s Challenge on Ageing - EU-Japan

Solution mechanism in Toshiba’s labor relations

Working hours and leaveJoint consultation deals with such issues as

-Flex-time system, discretionary working system-Various leave systems: child-care, family-care, etc.y y

SalaryRetirement income company pension systemRetirement income, company pension system Health and SafetyAccident compensation etcAccident compensation, etc.

Collective Bargaining deal with such issues asCollective Bargaining deal with such issues as Standards for working conditions

17

Page 18: Toshiba’s Challenge on Ageing - EU-Japan

Requests to Leaders: qGovernment, Labor and Management

Page 19: Toshiba’s Challenge on Ageing - EU-Japan

Conditions for creating employment of the elderly

Sustained growth is the basis for secure employment

At the social level, it is important to built an environment where each company can maintain growth, in order to create job opportunities for seniors.

Achieve employment for seniors through joint consultation

Inside the company, it is important to create a re-employment system through productive discussion between labor and management.

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Page 20: Toshiba’s Challenge on Ageing - EU-Japan

Requests to leaders: government, labor and management

We need visionary leaders of government, labor andmanagement who can look into the problems in the futuremanagement, who can look into the problems in the future

and propose the reliable direction as a countermeasure.

To share common understanding by government, labor and management: sustained growth of the companyand management: sustained growth of the company

is the basis for secure employment.

Companies must rely on the combined wisdom of labor and management and make concrete management decisionsmanagement and make concrete management decisions

through joint consultation as much as possible.

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Page 21: Toshiba’s Challenge on Ageing - EU-Japan

AppendixAppendix

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Toshiba Business OverviewToshiba Business Overview

Page 23: Toshiba’s Challenge on Ageing - EU-Japan

Toshiba Group Basic Corporate Data

Established: July 1875 by Hisashige TanakaCapital: ¥440 billion (US$5.5 billion)Total Assets: ¥5.73 trillion (US$71.6 billion)¥5.73 trillion (US$71.6 billion)Headquarters: Shibaura, Minato-ku, Tokyo, JapanE l 198 356Employees: 198,356 (worldwide)

Net sales: ¥6.1 trillion (US$76.2 billion)Overseas sales ratio: 55%

Consolidated subsidiaries: 554 Japan: 188; Overseas: 366

* A f M h 31 2012

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* As of March 31, 2012Note U.S. dollar amounts have been converted at the rate of US$1 = ¥80, for convenience only.

Page 24: Toshiba’s Challenge on Ageing - EU-Japan

Sales by Business Segment* As at March 2012, Consolidated Sales: ¥6.1 trillion

Digital Products¥1 7 tril (25%)Digital Products¥1 7 tril (25%)

Home Appliances& Others

¥0.9 tril. (14%)

Home Appliances& Others

¥0.9 tril. (14%) ¥1.7 tril. (25%)¥1.7 tril. (25%)

El t i D iEl t i D i

Social Infrastructure¥2.4 tril. (37%)

Social Infrastructure¥2.4 tril. (37%)

Electronic Devices¥1.6 tril. (24%)

Electronic Devices¥1.6 tril. (24%)

( )( )

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Page 25: Toshiba’s Challenge on Ageing - EU-Japan

Sales and Number of Employees by Region

Net Sales Number of Employees

(As of March 2012)

(Hundred Million JY)Total:61,003 Total:198,356

25

Page 26: Toshiba’s Challenge on Ageing - EU-Japan

As of March 2012As of March 2012As of March 2012As of March 2012Overseas Group Companies

As of March 2012As of March 2012As of March 2012As of March 2012EUROPEEUROPEToshiba of Europe Ltd.London U K

NORTH & SOUTH NORTH & SOUTH AMERICAAMERICAToshiba America, Inc.

TOSHIBA TOSHIBA HQHQT k

EuropeEurope

London, U.K. ,New York, U.S.A.Tokyo,

Japan

North & South AmericaNorth & South America

ChinaChina114114AmericaAmerica

68689393

CHINACHINACHINACHINA

Asia/OceaniaAsia/OceaniaAfricaAfrica

8787CHINACHINAToshiba China Co., Ltd.Beijing, The P l ’ R bli f

CHINACHINAToshiba China Co., Ltd.Beijing, The P l ’ R bli f

44AfricaAfrica

SOUTHEAST ASIASOUTHEAST ASIAToshiba Asia Pacific PTE., Ltd. Singapore

SOUTHEAST ASIASOUTHEAST ASIAToshiba Asia Pacific PTE., Ltd. Singapore

People’s Republic of ChinaPeople’s Republic of China

26

g pg p

Subsidiaries 366Subsidiaries 366Note: Include overseas subsidiaries of Toshiba’s key group companiesNote: Include overseas subsidiaries of Toshiba’s key group companies

Page 27: Toshiba’s Challenge on Ageing - EU-Japan

Labor Relations at ToshibaLabor Relations at Toshiba

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Relations with Outside Organizations

National Center(Rengo)

Japan Business Federation(Keidanren)

Japanese Electrical Japan Employers Federation ofElectronic & Information Union

p p yElectrical, Electronics &Information industries

T hib W k ’ U iT hib C ti

Toshiba Group Union

Toshiba Worker’s Union(in-house union)

Toshiba Corporation

Collective bargaining and joint consultation

28

g g j

Page 29: Toshiba’s Challenge on Ageing - EU-Japan

Labor Relations at ToshibaBasic principles of labor relations

– Equalityq y– Mutual respect– Advance consultation

J i t lt tiJ i t lt tiAgreement on collective Agreement on collective b i ib i i

29

Joint consultationJoint consultation bargainingbargaining

Page 30: Toshiba’s Challenge on Ageing - EU-Japan

Thank youThank you

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