APC 2007 Annual Report Download - page 87

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4
Business review
Employee share ownership
The Group gives employees a stake in achieving targets
and in Schneider Electric's performance through profit-
linked incentive plans, employee share ownership, stock
option programs and bonuses. In the spring of 2007,
Schneider Electric carried out an employee share issue
open to members of the Employee Stock Purchase Plan
and entities set up to purchase shares on behalf of em-
ployees.
Example in 2007
France : The French federation of employee shareholder
associations (FAS) awarded Schneider Electric its silver
medal for employee share ownership in November 2007.
Absenteeism (France)
2004 2005 2006 2007
Days absent 6.9% 7.3% 5.8% 4%*
(% out of theoretical working days)
* 2007 data includes all subsidiaries in France.
Reasons for absence (France)
2005 2006 2007
Sick leave 65.8% 73.4% 88%*
(% of total absences)
Work/commute injuries 5.0% 4.4% 5.5%*
(% of total absences)
* 2007 data includes all subsidiaries in France.
Payroll
and compensation
For many years, French team members have benefited
from variable compensation representing up to 9% of the
total (depending on the Group’s financial results) through
profit-based incentive or profit sharing programs.
Information on profit-based incentive
and profit sharing programs and/or employee
share ownership
(percent) 2005 2006 2007
Variable compensation 6.1% 8.1%* 9,5%
* 2006 data adjusted to reflect Group scope.
Social dialogue and relations
European committee
Schneider Electric’s European Committee keeps employee
representatives informed of changes within the Group.
Committee members have their own training and informa-
tion resources, including an online database and forum
and a quarterly e-newsletter.
In 2007, the Committee met twice in plenary session and
held four officers’ meetings.
An agreement on anticipating change was signed in July
2007 (see Reasons for Dismissals, page 84).
Group works council, France
This council, which supports the various works councils in
Schneider Electric’s French subsidiaries, provides a set-
ting for information and discussion with employee repre-
sentatives of the Group’s French units. The members’
terms were renewed for a period of three years in 2006.
Schneider Electric’s commitment with this council, created
in 1997, goes far beyond legal requirements. To give mem-
bers an overall view of the Group and a good understand-
ing of its business, Schneider Electric offers training,
provides access to electronic resources and organizes
plant tours, among other things. A five-day training session
is organized for all new members to provide a panorama of
the Group’s operations and business environment.
In 2007, the council organized two plenary sessions, three
plant tours and one information meeting for correspon-
dents.
Collective agreements
In 2007, two agreements were signed with labor unions in
France, one covering 2007 wages and the other employ-
ment of disabled persons.
The Group also signed three amendments to the January
29, 2006 profit-sharing plan concerning employees of SEF,
SEISAS and Schneider Electric in France.
Sites declaring employee representation
(percent) 2005 2006 2007
Unions 47% 51% 46%
Works council 55% 55% 67%
Health and
safety committee 68% 69% 54%
Average cost per employee
2005 2006 2007
Gross salary
+ payroll expenses
+ individual and collective benefits
40.2 K37.2 K*37.3 K
* 2006 data adjusted to reflect Group scope.
Among other things, the award recognized the Group’s ef-
forts to engage a meaningful dialogue with employee
shareholders, within the limits provided for by law.
Measures singled out for commendation included:
Regular updates on the corporate intranet of changes in
funds, offers and legislation.
Training on employee share ownership for Supervisory
Board members and on employee savings plans for
Human Resources team members.
Possibility for employees to track their investments on a
dedicated intranet site.