Issues to be addressed

The UT Group faces the following issues in its operation.

Actions taken by domestic manufacturers

While Japan’s economy has been steadily recovering, manufacturing companies in Japan, in particular electric and electronic components manufacturers, have been reorganizing their business structure or consolidating their production bases in Japan. In the medium to long term, this trend may affect the number of active technical employees in the UT Group, but may also provide business opportunities such as rising demand for filling vacant positions at production sites of manufacturers.

In this environment, we will deepen and expand business with device manufacturers with high world market shares in the semiconductor industry. At the same time, we will continue to actively develop business in the sectors that are related to batteries, environment and energy, automobiles, and construction materials, and to establish a stable business base.

Ensuring personnel

The scale of the working population, particularly younger members, has been declining in recent years and the jobs-to-applicants ratio has stayed at a high level not only in specific regions but nationwide.

Since the majority of the people who work in our areas of outsourcing business are younger workers, this trend could easily have an impact on our hiring activities. Over the medium to long term, hiring technical employees could become increasingly difficult.

In this environment, we strive to secure human resources by becoming a company that is supported by employees and job applicants. Our unique systems include the UT Entry System, which allows all Group employees to recommend themselves for executive positions, and the UT-ESOP (Employees’ Stock Ownership Plan) System, that functions through the employee shareholding association. We will continue to work on securing personnel by keeping the company well supported by both employees and job seekers.

Worker Dispatching Act

The bill to amend the Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers (the "Worker Dispatching Act") came into force on September 30, 2015. The Act specified abolition of conventional restrictions on sectors to receive dispatched workers; favorable treatment of dispatched workers with no time limit (open-end employment); obligation of dispatching companies to assist career formation of workers; and other items, in order to promote the healthy development of the dispatching industry. Such direction dovetails the management policy of UT Group, which have adopted open-ended employment for many years, and provides a tailwind to us.

We will continue to promote our dispatch business in compliance with laws and regulations, and strive to provide services valued by clients, by keeping a perspective of workers in mind.