Labor Practices

Last updated: September 2026

Basic Approach

Nifco places the safety and health of its employees first and works to strengthen occupational safety and health and to create a rewarding workplace environment so that each employee can fully demonstrate their abilities. Aiming to be a company where all employees can work according to their motivation and abilities, we comply with Japanese laws and regulations related to employment and labor, and have established a variety of internal rules and manuals. With regard to major changes in our business, we hold dialogue with employees through employee representatives and hold briefings for employees. In FY2025, there were no labor disputes of any kind, including strikes. We also work on the social protection of employees, including the elimination of arbitrary or discriminatory dismissal practices and the protection of personal data and privacy.

Compliance and Risk Reduction

To ensure that the business activities of the Nifco Group comply with relevant laws and regulations, the Articles of Incorporation, internal rules and other rules generally expected by society, we established the Compliance Regulations in 2006. The Group works to strengthen compliance risk management in order to prevent risks such as a loss of corporate value, a decline in sales, the incurrence of response costs, and damage to our reputation in society as a result of misconduct due to non-compliance. We have set a numerical target of zero serious compliance violations.
To achieve this target, the Compliance Manual, which is organized by theme, is reviewed in line with revisions to laws and regulations and changes in legal interpretation and social norms, and it was revised again in FY2025. The manual is used in training aimed at raising employee awareness, and has been translated into multiple languages and made available to overseas subsidiaries. Since FY2023, the training has been conducted as mandatory compliance training for all employees, including non-regular employees, and we are working to embed this training throughout the Company and its subsidiaries in Japan.

Establishment of Whistleblowing Contact Points

We have established a whistleblowing system in order to prevent and enable the early detection of misconduct arising from violations of laws and regulations or improper acts, and to improve the responsiveness of our self-correction processes. In September 2024, we further expanded the existing system by adding a contact point for business partners, making it a system that can receive reports not only from all employees in Japan and overseas (regardless of employment type) but also from external stakeholders such as business partners.

Occupational Safety and Health

The Group sets out “Strengthening Human Capital Risk Management” as one of its materiality issues. With regard to the prevention of occupational accidents, long working hours, and health impairment due to poor mental health, we have established an Occupational Safety and Health Policy and Safety and Health Management Regulations. To ensure the safety and health of our employees, we implement comprehensive and systematic measures to prevent occupational accidents and proactively work to maintain and improve employees’ health.

Establishment of Safety and Health Committees

The Safety and Health Committees, which meet at least once a month at applicable sites, inform employees of the results of their deliberations on the following items, in an effort to ensure a safe workplace environment.

• Measures to prevent recurrence based on analysis of the causes of accidents and occupational injuries

• Gathering the views of workers on the front lines and reflecting them in effective safety and health activities

• Confirmation of matters to be investigated and deliberated under the Industrial Safety and Health Act and related regulations

Number of Occupational Accidents

When an occupational accident occurs, we give first priority to responding promptly and immediately take measures to prevent recurrence. This information is shared with other business sites and used in self-inspections at each site to check for similar risks and hazards. It is also reported to the Risk Management Committee.
At our five plants in Japan (Nagoya, Sagamihara, Yamagata, Kitakanto and Kumamoto) and at Simmons in Japan, we have set targets of zero serious and semi-serious accidents and zero lost-time accidents per year, and of keeping non-lost-time accidents to five or fewer per year.

Status of occupational accidents

(As of the end of March 2026; the Company on a non-consolidated basis in Japan)

Mental Health

Once a year, we conduct stress checks for all employees, including non-regular employees, to ascertain their mental health and provide feedback on the analysis results to their departments. In addition, in case health problems arise, we have put support systems in place, including the appointment of a psychiatrist as an industrial physician, monthly consultations, an external consultation contact point, and support for employees on leave of absence.

(As of the end of March 2026; the Company on a non-consolidated basis in Japan)

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  Includes employees on leave due to poor mental health and other medical reasons

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