Improving Labor Conditions and Ensuring Human Resources for Construction Subcontractors

Concept and Policy

Business at Daiwa House Industry is done with the cooperation of many business partners from across our supply chains. In fact, most of these business partners are subcontractors who provide manpower for our plants and job sites. This makes heir human rights and labor conditions important matters to us. Reason being that providing them a job environment where they can safely engage in work over extended periods of time helps the subcontractor secure and retain the necessary human resources. We also believe that good workplace environments are critical for passing down skills and providing customers with high quality products.

Every year at Daiwa House Industry, we set out a "Basic Policy to Promote Safety and Health at Work," on which each branch office formulates a work safety and health plan that fits their particular situation and builds the systems for effectuating that. Work safety and health are then managed in line with applicable regulations, in order to ensure the subcontractor's personnel safety on the job.

We are always grooming job sites to protect the health of the subcontractor's personnel and enable them to work safely. This includes requiring subcontractors to "show considerations for work safety and health" as stated in our "CSR Procurement Guidelines." Underscored by this policy, we take every measure to prevent accidents and to manage health with our longstanding goal of zero work-related deaths.

Moreover, in line with the "respect for human rights" called for in our "CSR Procurement Guidelines," we observe the limits placed on overtime work by the Labor Standards Act and take constructive steps to eradicate excessive overtime work at our plants and construction sites. In addition, we honor the minimum wages set forth in the Minimum Wage Act because it is important to provide living wages that consent people a healthy and cultured way of life. We believe it necessary from the perspective of human resource development and guaranteeing living wages, to support the subcontractor's personnel not only with skills training but also financially.

Going forward as well, we will continue to improve workplace environments so that not only the subcontractor's job site personnel but also their families can feel "safe and secure," and build relations based on long-term "co-existence and coprosperity."

Management

Safety guidance in construction sites

At Daiwa House Industry, we are continually making improvements to construction site working conditions as a collaborative effort of the Safety Management, Engineering, Design and Construction, and Production departments. Guiding these improvements are our regulations on safety and health management. We also are providing guidance and training to our employees and our subcontractors’ personnel through periodic and surprise patrols of job sites and meetings to promote occupational safety and health.

Communications with the Confederation of Partner Companies

The Confederation of Partner Companies is a membership organization made up of construction subcontractors. It is organized into partner companies of our branch offices, regional offices that represent geographical blocks and a headquarters, the Confederation of Partner Companies. They stay in close communication with construction personnel, branch managers and even representative directors at Daiwa House Industry through meetings on various levels where they share information on a wide range of subjects — safety, quality, technical strengths, work efficiency improvements, human resource development, etc. — and formulate improvement measures.

Amenities and building codes that make it easier for subcontractors to work at our plants

Our plants are tied to a variety of stakeholders, to note the workforces at Daiwa House Industry, the plants themselves and our business partners, and our customers and the residents of the hosting community. In order to build good relations with these stakeholders, provide for ourselves monozukuri platform and contribute to the greater effort to protect the global environment, we have standards on building and renovating our plants. We strongly believe that providing safe workplace environments where plant personnel feel motivated improves employee retention rate and fuels the impetus to pass down skills. In turn, a skilled and dedicated workforce supports management at both the companies supporting our plants and the plants themselves.

Our "plant construction and renovation manuals" specify infrastructure codes and require us to use universal design as the fundamental train of thought, incorporate environmental (CASBEE S rank), earthquake and fire prevention measures, and provide break rooms, smoking areas, infirmaries and other amenities for personnel from business partners to use. Moreover, when it comes to building cafeterias, the manuals encourage gathering opinions from employees at business partners and our own workforce so that the resulting cafeteria is built to a greater level of satisfaction. With buildings that are not up to the code and will not be rebuilt, we make renovations to the best extent possible.


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