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ANNUAL REPORT 2012
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Human capital is fundamental for the implementation of business strategy, and its importance is recognised by Eternit in various staff management initiatives. The efforts made in this regard have been recognised by the market: Eternit and its subsidiaries were listed among the top rankings in terms of staff management in 2012.

At the end of the financial year, the Company had 3,130 direct and indirect employees, including 52 student trainees and 56 apprentices. Eternit prioritises the hiring of local labour, with 57% of its management body, including the Executive Board, consisting of employees from the surrounding communities.

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In 2012, 684 employees left the Company, resulting in a consolidated staff turnover rate of 58.07%. Analysed by gender, the turnover rate was 46.05% among men (588 leaving the Company) and 20.58% among women (96 leaving the Company).

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Eternit maintains an open-ended private pension plan scheme, duly authorised. The plan was set up with the main objective of providing a retirement supplement and pensions for employees and executives. Contributions are made by all employees and managers to a Free Benefit Generating Plan of the defined contribution type. Contributions are made by the group and the participants, following pre-established percentages, in accordance with progressive levels of contribution. For the financial year ending December 31, 2012 and 2011, the Company and its participants made the following contributions to the cost of the benefit plans, as shown in the table below.

Employees by region*
 
Eternit  
Osasco (SP)
3
Colombo (PR)
368
Porto Alegre (RS)
0
Rio de Janeiro (RJ)
214
São Paulo (SP)
161
Simões Filho (BA)
236
Goiânia (GO)
303
Minaçu (GO)
0
Anápolis (GO)
148
SAMA  
São Paulo (SP)
12
Minaçu (GO)
1,200
Tégula  
Atibaia (SP)
238
Içara (SC)
63
Camaçari (BA)
41
Frederico Westphalen (RS)
42
Anápolis (GO)
56
São José do Rio Preto (SP)
45
Total 3,130

*It includes the outsourced staff.
total direct and indirect employees

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Workers by type of contract* Directly hired employees Outsourced Student trainees Apprentices Total
  2,391 629 55 55 3,130

* All directly hired employees and outsourced staff are employed on a full-time basis. The others work half days. All employees are hired for an indeterminate period.


Numbers leaving the
Company by age group
2012 2011 2010
Number % rate Number % rate Number % rate
Up to the age of 25 233 28.32 290 53.29 170 62.11
26 to 30 168 16.81 177 23.57 90 27.49
31 to 40 173 17.56 204 23.22 110 22.57
41 to 50 84 8.51 69 8.59 34 7.89
Over 50 26 2.11 27 2.53 9 2.05


Number leaving the
Company by region
2012 2011 2010
Number % rate Number % rate Number % rate
Colombo (PR) 138 9.85 144 10.33 0 11.05
Porto Alegre (RS) 0 0.00 1 0.07 94 0.00
Rio de Janeiro (RJ) 38 2.71 41 2.94 0 3.88
São Paulo (SP) 44 2.92 39 2.08 33 1.41
Simões Filho (BA) 43 2.93 40 2.87 13 1.76
Goiânia (GO) 25 2.03 38 2.73 15 3.41
Minaçu (GO) 49 8.37 72 0.93 29 0.93
Anápolis (GO) 42 2.93 20 1.43 56 0.94
Atibaia (SP) 138 9.85 215 81.88 8 80.78
Içara (SC) 26 2.04 15 76.37 78 50.36
Camaçari (BA) 41 5.16 50 109.37 6 124.34
Frederico Westphalen (RS) 30 75.67 29 92.69 30 75.67
Anápolis (GO) 19 105.26 51 106.88 19 105.26
São José do Rio Preto (SP) 38  0 12 0 0

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Contributions to benefit plans (R$‘000)
2012 2011
3,542 3,530

Eternit guarantees the right of its employees to freedom of association and collective-bargaining. Among the mechanisms that guarantee this stance, of particular note is the Tripartite Agreement (see more on “Safe Use of Chrysotile Asbestos”). In 2012 no operations were identified in which there was any risk of these rights are being violated.

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All directly hired employees are covered by collective wage agreements. Any operational change is communicated to employees with advance notice of 30 days. Only the collective agreement at SAMA formalises this practice, with the other companies in the group adopting it on a voluntary basis.

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Human rights aspects relating to employees are fully covered by labour legislation, clauses in the Company’s Code of Ethics, and collective agreements as a result, there is no risk of any child labor, forced labor or labor analogous to slavery.

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Relationship with former employees

Eternit undertakes a commitment to monitor the state of health of its former employees. This practice includes not only professional operational staff from the current units, but also those who previously worked at the Poções mine in Bahia, for example. This same procedure is valid for suppliers who directly deal with the Company’s products, such as the drivers of transport trucks and the stevedores in ports that ship the company’s products.

The company maintains a databank with medical records, x-rays and thorax resonance scans of all these public audiences. For communication with them, there is a specific toll-free telephone number 0800-622945.

Attraction and retention of talent

Salaries

Eternit’s remuneration policy is in alignment with the best market practices, including fixed and variable remuneration, and benefits at all hierarchical levels. Salary increases may take place as a result of changes in responsibilities, increases freely given, promotions or employee transfers. All employees are eligible for variable remuneration, linked to performance targets.

The Company also maintains an open dialogue with the unions of each region where it is present, and applies percentage increases in accordance with signed collective wage agreements Eternit also continuously monitors average salaries practised in the market in order to keep its remuneration practices in alignment with other companies.


Benefits
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Benefits provided to employees in 2012   Tégula
Eternit1 SAMA2 Employee Outsourced Part-time
Medical assistance3 X X X X X
Dental assistants X X X   X
Nutrition assistance and food card X X X   X
Day care assistance X X      
Pharmaceutical assistance X X X   X
Orthopedic assistance X        
Ophthalmological assistance X X X   X
Meal and restaurant tickets X X X X X
Student grants X X X    
Language course grants X X X    
Toys X X X   X
Christmas basket X X X X X
Assistance in the event of disease/accidents X        
Confraternizations X X X X X
Crown of flowers X X X   X
Payroll loans     X    
Emergency loans X X      
Freight     X   X
Birth kit X X X   X
Time at home award X X X    
Wedding presents X X X   X
Birthday presents X X      
Private pension plans X X X    
Quality-of-life program X X4      
Reimbursement for medical expenses in loco X X      
Parking reimbursement for São Paulo X X      
Group life-insurance X X X    
Transport vouchers X X X   X

1. Eternit does not use temporary staff. Benefits are provided to 100% of employees.
2. At SAMA, all employees receive benefits, including temporary staff and those employed on a part-time basis.
3. Medical assistance is extended to former employees of Eternit and SAMA.
4. All the administrative area of São Paulo.


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Proportion of lowest salary to local minimum salary (%) 2012 2011 2010
Eternit      
Company headquarters in São Paulo (SP) 83.0 175.7 41.8
Offices in Osasco (SP) 447.2 525.2 418.7
Plant in Simões Filho (BA) 42.2 41.7 38.0
Plant in Goiânia (GO) 43.6 42.5 13.3
Plant in Colombo (PR) 21.9 23.7 10.1
Plant in Rio de Janeiro (RJ) 35.6 30.4 28.1
Precon plant 24.9 0.4 12.6
SAMA 62.8 72.0 58.1
Tégula      
Plant in Anápolis (GO) 33.9 10.0 7.5
Plant in Camaçari (BA) 22.0 15.8 04.1
Plant in Frederico Westphalen (RS) 32.3 29.8 38.5
Plant in Içara (SC) 94.5 57.5 54.5
Plant in Atibaia (SP) 51.3 60.6 64.3
Plant in São José do Rio Preto (SP) 51.3 60.6 -

In 2012, 13 women and 72 men availed themselves of the benefit of maternity/paternity leave. Of these, only one employee of SAMA did not return after the end of his leave, because her baby was born in November, so she was still on maternity leave at the end of the year. All returning employees had remained with the Company 12 months after the end of their leave.

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During the year, the units also carried out campaigns, programs and seminars on occupational health and safety. There were 31 projects at Eternit, 12 at Tégula and 8 at Precon focused at internal employees, families and outsourced staff. In addition to this, SAMA publishes a journal called Viva Bem on its intranet every month, on subjects covering tobacco addition, alcoholism, obesity, nutritional habits, the practice of sports, among other health-related matters. At Eternit and Precon the journal is published every two months.

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Targets and performance

Performance targets linked to results are stipulated for all employees. Each area of the Company defines specific objectives for this purpose. The Executive Board and the Management also have individual performance targets to be met, that include quantitative as well as behavioural factors. The continuous evolution of all the employees at the Company, including those in positions of responsibility, is periodically evaluated, serving to provide information for the Company Career Plan.

At Eternit and at SAMA, 100% of all employees receive performance evaluation. While at Tégula, the directors, managers and supervisors, who are equivalent to 5% of the total workforce, receive a performance analysis on an annual basis.

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Professional development

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At the units of Eternit, the PLACAR program – the Career Plan of Eternit and Precon maps out and identifies employees for future positions within the Group, in a clear and transparent manner, enabling the employee himself to trace out his professional future within the company. This program is updated annually, and covers 100% of the employees at the plants of Eternit and Precon. In addition to mapping out his career at the Company, the employee can also trace out his or her individual performance plan, with assistance from his manager, and the human resources department. Eternit offers a training plan that is structured to meet the needs of current and future positions, generated and drawn up based on PLACAR, as well as providing assistance in the form of student and language course grants, providing a 50% subsidy for monthly fees.

At SAMA and Tégula, the identification of qualification aspects to be worked on by employees is carried out using Training Needs Assessment methodology, applied annually. At SAMA, employees themselves plan their own careers, with support provided by a series of corporate initiatives, such as the Taking Care of My Career, Student Trainee and Apprentice Programs. This concerned with individual development extends to families, with the Be-a-Bá do Emprego, and the transition to retirement, with Segundo Tempo. While Tégula supports the qualification of its employees through graduate, postgraduate and language course grants.

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Training hours carried out in 2012* Total hours Total investment (R$) Hours per employee Investment per employee (R$)
Management, Coordination and Executive Board 384 23,703.68 20 1,247.56
Administrative 5,202 222,184.56 50 2,136.39
Total 5,586 245,888.24 34 1,497.04

* The information above refers only to the unit in São Paulo. For the next few years, the company will be perfecting its controls so that they can include all the units and companies in the Eternit Group. For the year, total investment in training amounted to R$1,364,000.