Labor-management relations

Suzuki has built a mutual trust and a good relationship with the Suzuki Labor Union, which represents Suzuki employees. The number of labor union members is 17,296 as of the end of FY2023, and the unionization rate of full-time employees (excluding managers and non-union members defined in the labor agreement) is 100%.

Transformation in the negotiation style from 2022 onwards

Labor-management negotiations had primarily been held once a year in spring, the Shunto labor-management wage negotiation. The main topic at Shunto was largely on salary raises and bonuses; however, information exchange and discussion about other issues between employees and management was limited, and the exchange of opinions was only a formality. Given this situation, to enliven communication between managers and their teammates at each workplace, the core site of labor-management trust, we tried holding debates at each level, and at the 2022 spring management- labor negotiations, we conducted measures to realize this. These efforts will continue from 2023 as well.

Activities during Shunto labor-management wage negotiations

Suzuki made negotiations “a place of dialogue,” in which the Company conveys its initiatives for the future, and shares with the union the issues that should be addressed in relation to those measures, with both sides aligning their positions while discussing ways to reach solutions.
Based on the belief that it would be effective for not only union members, but also managers to work together on labor-management negotiations, a message, mainly targeting managers, from the President was issued at the same timing as the negotiations. Information on the content of the dialogue, including this message, was made available to all members of labor and management.

Continuous activities after labor-management negotiations

Conducting union member attitude survey

The Suzuki Labor Union, which represents Suzuki employees, conducts an attitude survey of all union members in collaboration with the Federation of Suzuki Automobile Workers’ Unions (a federation of Suzuki-related labor unions whose members are Suzuki Group labor unions). This survey has been conducted every year since 2018 in order to create a better company and workplace by grasping the strengths and weaknesses of the Suzuki Group as a whole from an inside perspective. Issues identified through the survey results are reported to union members and incorporated into union activities. Concurrently, labor and management share the issues, which are put to good use in joint labor-management activities to solve workplace issues, thereby maintaining a stable labor-management relationship.

Building a stable relationship with the labor unions in the Suzuki Group

The Suzuki Group has 120 member companies (manufacturers, non-manufacturers, sales distributors) in Japan and abroad. It is our hope that those 120 member companies are individually trusted by the local residents, society, and customers.
At Suzuki, we hold seminars for union officials and staff at human capital departments from overseas Group companies to make them understand the importance of trusting relationships and smooth communication between labor and management, as well as the need for a fair and equal personnel management system, etc. We also work with the Suzuki Union to promote global personnel exchanges both domestically and abroad, and we strive to establish a work environment which allows our approximately 70,000 employees in 120 companies to work with creativity and enthusiasm, and to maintain a stable labor-management relationship.

IndiaMaruti Suzuki India Limited

Maruti Suzuki India strives to ensure a stable and friendly labor-management relationship through effective communication, employee participation in important decision-making processes, and various employee welfare programs. The company conducts regular interactive communication led by the President with employees at various levels in order to constantly provide information on the condition of management overall and provide a robust platform for exchanging opinions.

■ Engagement with Unions and Shop Floor Employees

● Freedom of association and collective bargaining

Maruti Suzuki India Limited promotes freedom of association and collective bargaining. There are a total of three workers’ unions. It allows collective bargaining and actively collaborates with all the unions. During the year, elections to elect workforce union representatives at the vehicle manufacturing facility at Manesar were conducted in a smooth manner.

● Compensation system

Maruti Suzuki India provides industry-leading allowances and compensation that exceeds the industry average. In terms of remuneration policy, the company has introduced a well-structured performance-linked remuneration system for all ranks of employees, without gender discrimination, and based on indicators of improved productivity and achievement of business targets.

● Employee welfare system

● Capability upgrading and career development

Maruti Suzuki India Limited has been partnering with various academic institutions to provide access higher education programs to its employees. Under this program, the shopfloor workers are eligible to participate in 3-year diploma program. Eligible employees who complete the higher education program are considered for promotions to take up higher responsibilities.

● Connections between employee families and the company

● Gender diversity and inclusion

● Handling grievances from front line employees through a specialist help desk

A specialist help desk handles grievances, in order to address grievances reported by employees, including temporary employees. Regular grievance hearings are held to address employee problems.

● Awards and recognition

Maruti Suzuki India Limited has been recognized at the prestigious Industry Academia Conference (IAC) Corporate Awards 2024 under the Private Sector Category for pioneering work in “Sculpting Talent for Tomorrow.”

Wages

Through mutual trust, we have developed a good relationship with the Suzuki Labor Union, which represents Suzuki employees. Among the labor union’s goals are stable employment and maintaining and improving work conditions. In order to meet these conditions, stable development of the Company is essential. When negotiating salaries, bonuses, labor hours, etc. as distributions of the results of corporate activities, we share the same direction of trying to develop the Company in a stable manner while having discussions from the standpoints of the Company and the labor union.
In addition, labor and management conclude an agreement to guarantee minimum wages annually.

■ Starting salaries in Japan

(As of April 2024)

• * Minimum wage is calculated based on Shizuoka Prefecture’s minimum wage (¥985/hour) for an 8-hour workday, 20.3 days per month. Salaries are based on a classification system, and there is no disparity by gender, race, or region for the same qualification.

President’s workplace dialogue

Since 2021, the President has visited all workplaces within the Company (divisions, plants, sites) and has held information sharing meetings (FY2023: 24 headquarters and 39 workplaces). The President directly conveys his thoughts and ideas to employees, and employees share their daily issues with the President. The President and employees share problems, cooperate, and make a concerted effort to solve those problems. Notably, these meetings provide young to midlevel employees with the opportunity to convey their thoughts and ideas directly to the President in their own words. In addition, the President and other members of management listen to these voices of employees and strive to make improvements flexibly and rapidly.
Also, since 2023, our handling of grievances has been put on our website for viewing, which shows we don’t just absorb employee opinions and move on; we provide feedback by continuing to address them.

Welfare and benefits

Dormitory for single employees and housing

Suzuki has a dormitory for single employees who join the Company from distant areas. Depending on the region, there is also company housing for employees working at domestic offices (including those on secondment).

Company-subsidized housing

Suzuki also has subsidized housing where the Company rents ordinary homes for employees as a dormitory or company housing for employees (including those on secondment) working at domestic offices or sales distributors in regions where there is no dormitory or company housing.

Sports facilities

Suzuki has established gym facilities that are provided to employees to improve their health, boost their physical condition, or spend their leisure time. Comprehensive sports facilities (Suzuki ground, Suzuki gym, a weight training room and tennis courts) with nighttime lighting are located close to the head office. The Company also has a ground adjacent to the Iwata Plant (for sports such as baseball, softball and soccer).

Employee cafeterias

Cafeterias are located at the head office, each plant and dormitories (with some exceptions) as food supply facilities for employees, and serve meals such as a la carte dishes, set menus, curry rice and noodles. (Dormitories mainly serve set menus.) The head office cafeteria also serves breakfast and beverages, providing such offerings as freshly baked bread and freshly dripped coffee.
On January 15, 2024 we began providing vegetarian Indian food at our employee cafeteria at the head office. The food is prepared by a company offering restaurant business in Hamamatsu City, and the flavors were codeveloped by Suzuki’s employees from India to align with Indian tastes. At sites other than head office, the food is available by reservation.

Asset accumulation savings program

Suzuki has an asset building savings program for the purpose of encouraging employees to save, and any employee under the age of 55 can take part (with the three types of assets: general assets, annuity assets, and housing assets).

Employee vehicle or family vehicle purchase program

This is a program that enables employees or a member of their family (a spouse or child of an employee) to receive a predefined discount upon purchase of a (new Suzuki) vehicle (some models are excluded). The program also enables funding if purchase funds are needed.

Employee stock purchase plan

The employee stock purchase plan is a program where a certain amount of money is deducted from monthly pay to buy Company stock regularly. It started in 1973 as an employee benefit program. Employees can acquire stock easily in proportion to their monthly contribution and the Company also provides an incentive for the contribution to support employees’ asset building. Employees hold stock in their own company, so when the Company’s results improve, the stock price goes up and as a result their own asset value increases. For this reason, the program can be expected to raise employee motivation and also foster an awareness of participating in management.
Also, Suzuki has raised the incentive grant rate for its employee shareholders’ association from the previous 5.6% to 100% (maximum incentive of ¥10,000) as part of its human capital investment initiatives since April 2023. By making the program attractive and easy to join, even more employees are participating in the stock ownership association, which supports asset formation and raises their sense of participation in management.
Suzuki will continue to expand its welfare and benefits programs to unite its employees and work as one to achieve the Growth Strategy for FY2030, while aiming to be a company essential to people and society.

Selective welfare system

● Cafeteria plan

● Benefit station

● Kitchen car