Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; Chairman, President & CEO: Kiyoshi Otsubo) announces that it modified the childbirth congratulatory bonus system in April 2006 as part of its countermeasures against the declining birth rate and efforts to nurture future generations, with payment amounts increased to 20,000 yen for the first child, 50,000 yen for the second child, and 1 million yen for third or subsequent children. Since the changes were made, the impact has been substantial, particularly with regard to third and subsequent children. Prior to the changes, the number of employees having a third or subsequent children was just over 10 annually, but this has almost doubled to an average of just under 30 per year. In September 2017, 11 and a half years since the program was modified, the total number of recipients of the 1 million yen bonus surpassed 300.

Japan's declining population has had a severe impact on the labor market, and there are serious concerns regarding a loss of vitality throughout society. Rengo is aware that the low birth rate and fostering future generations are key social issues for business enterprises. As such, it implements measures that support a good work-life balance, including expansion of the childcare leave program and introduction of a program for reduced working hours so that employees can care for their children. Rengo has received Kurumin certification pursuant to the Act on Advancement of Measures to Support Raising Next-Generation Children since 2008.

Rengo Group companies, including Settsu Carton Co., Ltd., Rengo Paper Business Co., Ltd., and as of June this year, Yamato Shiki Co., Ltd., also increased bonuses for third or subsequent children to 1 million yen and have taken other measures from the same perspectives to modify and enhance their childbirth congratulatory bonus programs.

Family structures are diversifying, but approximately half of Rengo's employees have children and about 10% have three or more children. Rengo remains committed to celebrating the birth of new life from its perspective as a business enterprise, as well as to supporting childcare through programs and financial measures.

From the viewpoint of correcting the issue of overly long working hours and establishing a good work-life balance so that diverse human resources including women are able to work, Rengo is making company-wide efforts to raise Total Factor Productivity (TFP) and is reviewing work styles. In February of this year, Rengo adopted and announced the Work Style Reform Declaration with a focus on encouraging male employees to take childcare leave pursuant to the work style reform policies being promoted by the Ministry of Health, Labour and Welfare and the Osaka Labour Bureau. Rengo is using this review of the work styles of men as an opportunity to establish workplaces that facilitate work by everyone, regardless of gender.

Going forward, Rengo will use work style reforms to counter the low birth rate and support the development of future generations while creating and solidly establishing a culture that facilitates childcare by both men and women.