1
April 28, 2009
To whom it may concern:
Report on Submission of Notification of Job Offer Cancellation
Group subsidiaries Ctec, Inc., CSI Co., Ltd. And TechnoPro Engineering, Inc. ("Three Technology Subsidiaries" hereinafter) submitted "Notifications of Cancellation of Job Offers to New Graduates" to the Tokyo Labour Bureau on
April 27,
2009 as instructed by the authorities.
Deteriorating economic conditions have resulted in a sharp decline in demand for the group's services, and to adapt to the extremely challenging business environment that confronts us, we announced a "Business Rebuilding Plan" on March 2, 2009. Under this plan, the entire group has: 1) withdrawn from manufacturing staffing services and sold off relevant operating companies; 2) reduced engineer staff at the Three Technology Subsidiaries; and 3) reduced indirect staff, restructured operations and cut wages at individual companies.
In light of these circumstances, full consideration was given to the options for new graduates at the Three Technology Subsidiaries, specifically the cancellation of offers and/or the hiring of new graduates on standby status at home (furloughs) and payment of standby allowances.
Nonetheless, the sharp declines recently seen in both economic conditions and the job market indicate that it may be extremely difficult for new graduates, who are in a relatively weak social position, to immediately find new job opportunities, and we therefore made the difficult choice of refraining from canceling job offers etc. and instead encouraging the reassignment of as many new hires as possible to group companies that have demand for staffing services, thereby ensuring these individuals of job opportunities.
In explaining to new graduates this request to accept reassignment, the Three Technology Subsidiaries emphasized that reassignment was not mandatory. They also made repeated efforts in individual consultations to furnish new graduates with accurate information and encourage their understanding so as to enable them to make the choice of their own volition.
The provision of job opportunities through reassignment to group companies is a temporary measure to deal with difficult times and is predicated on new graduates returning to the companies where they were originally offered jobs as the economic environment recovers and group results and assignment opportunities improve.
While we exerted every effort to explain the group's thinking and responses to new graduates, the Three Technology Subsidiaries unfortunately had some who elected to decline offers.
Company:
RADIA HOLDINGS, INC.
Representative: Shinichi Horii
Representative Director and President
(Code No. 4723 TSE 2nd Section)
Contact:
Hideshi Tachiyama Senior Executive Officer General Manager, Public Relations and Investor Relations Division
(TEL: 03-3405-9262)
2
The government currently offers "Special Incentives to Promote the Full-Time Employment of Younger Workers etc." in which it pays incentives to companies who hire people for whom job offers have been withdrawn, but these incentives are not available if the worker declines an offer. To be eligible for incentives, companies are required to submit a standard "Notification of Cancellation of Job Offers to New Graduates" to the labor authorities.
The group made every effort to protect the jobs of new graduates and to avoid cancellation by providing reassignment opportunities. Nonetheless, there were some who elected to decline offers. We engaged in repeated consultations with the authorities on ways to provide relief under the "Special Incentives to Promote the Full-Time Employment of Younger Workers etc.," but the conclusion was that the only means to do so was the submission of a "Notification of Job Offer Cancellation."
As a result, the Three Technology Subsidiaries are going to be publicly listed by the authorities "businesses withdrawing job offers" for April new graduates.
The submission of a "Notification of Job Offer Cancellation" is an unusual and extraordinary step that was taken by the Three Technology Subsidiaries to provide relief to those who declined the group's job offers, and it applies only to those who elected to decline offers.
End of document
