Policy and Initiatives Regarding Labor Practices

In addition to complying with the minimum wage laws and regulations of each country and region, we verify that our wage levels are appropriate and aligned with market standards by comparing our wage data with objective market wage data. In the "JAL Group Management Vision 2035," the JAL Group clearly positions continuous investment in human resources as a key policy, and we are promoting various initiatives to enhance the well-being of each employee, including securing living wages.

To ensure accurate tracking of working hours and proper payment of wages, we cross-check PC log-on and log-off times with declared working hours. Where discrepancies may occur, we verify the reasons, and if a discrepancy is found to be caused by actual work, we ensure that the records are appropriately corrected based on the facts to guarantee the payment of overtime wages.

We hold regular discussions with trade unions regarding employees' working conditions (such as wage revisions and changes to welfare programs). These discussions take place between management and trade union representatives.

As part of our DEI initiatives, we regularly monitor the gender wage gap among management and general staff, as well as by job types. After obtaining third-party assurance, we disclose this data externally as ESG data.

We analyze that the main factors causing the gender wage gap are differences in length of service and disparities in the male-to-female ratio by job type.

To reduce these wage gaps, we are creating an environment that supports employees in balancing work with life events such as childcare and nursing care. In addition, we are promoting initiatives that focus on addressing disparities in the male-to-female ratio for each job type, including joint research with external institutions.

Recognizing that refreshment of mind and body, as well as feeding the experience and value gained through external experiences and self-development back into the company ultimately leads to corporate growth, we are committed to encouraging employees to take paid annual leave. In addition to thoroughly raising awareness of legal leave requirements, we implement initiatives to encourage leave taking, such as designating recommended leave dates. We are also working to create an environment where it is easier to take leave by making flexible work styles available, such as "workcation"^*1 and "bleisure"^*2, allowing employees to choose when and where they work. Additionally, the JAL Group ensures that wages are paid for paid annual leave.

In recent years, while the rapid evolution of digital technologies—including generative AI and robotics—brings significant benefits in terms of operational efficiency, concerns have also arisen regarding adverse impacts on future employment. The JAL Group is implementing a "DX Human Resources Development Program" for all employees to help them successfully utilize these technologies and smoothly shift toward value-creating work that only humans can perform.

This program aims to foster a JAL Group that constantly evolves by ensuring all employees share a common understanding of DX and actively promote transformation. We provide optimal educational programs tailored to each person's position and role related to DX, and we are working to enable all employees to promote DX from their respective positions.

We believe that these initiatives will also contribute to preventing or mitigating the negative impacts caused by changes in industrial structure.