Labor-Management Relations (freedom of association and collective bargaining)

GRI 2-30 / 402-1 / 407-1 / G4-MM4

Basic Approach

In the Sumitomo Metal Mining Group Policy on Human Rights and the SMM Group Code of Conduct, we stipulate respect for the basic rights of employees as indicated in the International Bill of Human Rights and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work.

Dialogue between Labor and Management (Japan)

The Company and Group companies in Japan have built solid labor-management relations over the years and engage in trouble-free discussions. The collective agreements concluded between the Company and the Federation of Sumitomo Metal Mining Workers Unions guarantee that labor unions have basic labor rights, including freedom of association and workers’ right to collective bargaining. At unionized sites of our branch offices and domestic Group companies, most unions are active under the Federation of Sumitomo Metal Mining Workers Unions. In Japan, based on union shop agreements, all general employees except managers are eligible to join. As of March 31, 2025, labor union membership was 56.0% in Japan and 58.0% for the entire Group in Japan and overseas.
In order for the Company and labor unions to respect each other’s position and build positive labor-management relations based on trust, the Company holds labor-management council meetings, labor-management discussions, and other meetings with labor unions and employee representative organizations at all business sites at least once a month, and set regular opportunities to explain management conditions and take in opinions and requests from employees. In response to requests regarding improvements to occupational health and safety and working environments, we enact necessary improvement measures after confirming situations. We also hold a Central Labor-Management meeting at least once a year as meetings between the Company’s management team and the executives of labor unions under the Federation of Sumitomo Metal Mining Workers Unions.
From February to March every year, the Company and the Federation of Sumitomo Metal Mining Workers Unions negotiate working conditions including wages and bonuses for the following fiscal year.
We have also established individual Labor-Management Advisory Committees for specific themes such as human resource systems, wages, shorter working hours, benefits, and occupational diseases. In Labor-Management Advisory Committees, labor and management together investigate, examine, and solve issues under themes on which both sides have reached consensus. The results of the committees’ examinations are reported to representatives of labor and management.
Agreements, arrangements, confirmations, and so on reached through consultations or discussions between labor and management are made public and made known to employees through an internal portal site after conclusion.

Dialogue between Labor and Management (Overseas)

GRI 407-1 / 408-1 / 409-1

Among our overseas consolidated subsidiary companies are four that have labor unions. As of March 31, 2025, the labor union membership at these subsidiaries was 65.7%. Overseas, we assess the state of unionization through questionnaires and track on-the-ground labor-management conditions and engage in exchanges of ideas through seconded employees assigned by the Company to overseas posts. On issues of importance to labor and management, we conduct discussions by both sides and reflect the opinions of both in reviews of measures and the formulation of new systems, in accordance with the laws and regulations of relevant countries and regions. As a result of such efforts, in FY2024 there were no reports of cases of child labor or forced labor, serious infringements on freedom of association, or plant closures due to causes such as strikes in our Group, either domestically or overseas.

Notification of Reassignment, Secondment, and Transfer in Work

The collective agreement we have concluded with the Federation of Sumitomo Metal Mining Workers Unions stipulates that when employees are reassigned, seconded, or transferred in large numbers for reasons of business, the Company will discuss basic matters with the labor union. The agreement also stipulates that when employees are reassigned, seconded, or transferred, the Company will promptly notify the individuals concerned and the labor union regarding the destination.
In FY2024, we transferred all shares of one domestic consolidated subsidiary to another company, resulting in the employees of the subsidiary moving to the new company. With the cooperation of the labor union, the share transfer was completed smoothly.

Labor-Management Agreements to Improve the Level of Occupational Health and Safety

GRI 403-4

Collective agreements concluded between the Company and the Federation of Sumitomo Metal Mining Workers Unions stipulate the assurance of occupational health and safety, the establishment of Occupational Health and Safety Committees, education, training, health checkups, and other matters. Through cooperation between management and labor, we are working to improve the level of occupational health and safety. Occupational Health and Safety Committees formulate annual plans for occupational health and safety activities, check progress under the plans, examine measures to prevent occupational accidents and their recurrence, and share information on the use of health checkups, with the goal of creating an environment for working with safety and good health.