OMRON Corporation has concluded a labor agreement with the OMRON Labor Union. The agreement requires both sides to act in good faith and to strictly observe contract provisions in order to establish and develop labor-management relations based on mutual sincerity and trust.

Management policies, business plans, and management and business measures are fully explained to union members at meetings held as necessary. An exchange of views between the company and the labor union is also encouraged, so as to strengthen mutual understanding and ensure that necessary measures can be implemented effectively and thoroughly.

In fiscal 2011, repeated discussions were held with labor union representatives regarding the OMRON Group’s medium/long-term strategy “VG2020” and its human resource strategy, which is a key functional strategy of VG2020. The talks helped ensure that union members are fully informed about OMRON’s management strategies.

Decisions on working conditions are made only after thorough discussions are held and a mutual agreement is reached between management and employees at the Labor-Management Council meetings. To deal with important issues, various Labor-Management Review Committees are established to discuss and share issues facing OMRON, and the activities needed to solve these issues through collaboration. As with OMRON Corporation, OMRON Group companies in Japan with labor unions seek to promote communication between management and union members through the Labor-Management Council meetings, and deepen mutual understanding in order to facilitate smooth implementation of various strategies.

OMRON Group companies in Greater China have also organized a labor union, initiating activities to encourage discussion between the management team and representatives of employees, and promote better understanding between them.

OMRON has an appropriate compensation system in place for inventions by employees based on the provisions stipulated in the Patent Law.

To raise employee motivation for creating excellent inventions, and to establish a corporate culture that promotes the creation of powerful patents that can support the growth the company, OMRON has established an Excellent Patent Reward System. This system recognizes employees' excellent inventions that are expected to result in the creation of new businesses or contribute significantly to the company's revenue. A reward will be paid for excellent patents that have been registered and recognized for actual contributions to business.

In fiscal 2011, an invention was recognized as an excellent patent and its inventor received a reward.