Policy regarding "Guidelines on Price Negotiation for Appropriate Pass-through of Labor Costs"

Policy regarding "Guidelines on Price Negotiation for Appropriate Pass-through of Labor Costs"

To comply with the Guidelines on Price Negotiation for Appropriate Pass-through of Labor Costs issued by the Japan Fair Trade Commission on November 29, 2023, we, as an ordering company, will establish the following new policy, notify all suppliers, and make it publicly available both internally and externally.

  1. We will hold regular discussions with suppliers regarding the pass-through of labor costs.
  2. When requesting suppliers to explain the reasons for increased labor costs and to provide supporting materials, we will respect their requested price, treating the published materials as a reasonable basis.
  3. To ensure reasonable pricing through appropriate cost pass-through across the supply chain, we will carefully assess the appropriateness of suppliers’ requested amounts, while suppliers are expected to optimize transaction prices with their subsequent suppliers.
  4. If a supplier requests a price increase due to higher labor costs, we will engage in discussions and will not treat the supplier unfavorably simply because of such a request.
  5. Regardless of the method or content of a supplier’s request, we will engage in discussions and, when necessary, propose appropriate approaches to addressing the pass-through of increased labor costs.

                                      

October 1, 2025

Takachiho Koheki Co., Ltd.

President and Representative Director

Takanobu Ide

 
.