APC 2012 Annual Report Download - page 83

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 81
SUSTAINABLE DEVELOPMENT
2
COMMITTED TO AND ON BEHALF OFEMPLOYEES
In 2012, the criteria for sustainable development in the personal
performance incentives were extended to the Country Presidents
of the fi ve principal countries of Schneider Electric.
Since 2010, the CO2 reduction target has been taken into
account for the performance incentives of all Global Supply Chain
Management personnel who receive a bonus.
The reduction in the occupational accidents Severity Rate and in
the Medical Incident Rate is taken into account for the performance
incentives of all managers at industrial sites and logistics centers
who receive a bonus.
In December2011, the annual long term incentive plan for2012
was put in place granting 2,637people performance shares on the
condition that they belong to the Group on the day at the end of the
acquisition period and that performance targets are met. For the
fi rst time, defi nitive attribution of a part of the shares is conditional
on meeting a sustainable development target which is defi ned as
the Planet & Society Barometer score at the end of 2013. As a
reminder, the Barometer is published externally and its components
are audited.
In June 2012, the profi t-sharing incentive plan was signed for the
years 2012-2013-2014 for the French entities Schneider Electric
Industries and Schneider Electric France. For the fi rst time, the
allocation of profi t for the employees of these entities includes
achieving the annual targets of the Planet&Society Barometer.
4.9 Social Dialogue and relations
Approach
Schneider Electric considers that freedom of association and
collective bargaining are fundamental rights and must be respected
everywhere. For many years, social dialogue has been taken
into consideration by our social reporting system: each year,
local HR report the presence of trade unions, works councils
and health & safety committees (see page 104 ). In 2012, 87%
of Schneider Electric entities have at least one representative
organization (fi gure based on more than 84% of the overall
headcount).
Social dialogue is managed at European level through the European
Works Council and at Country level by the HR leaders. Schneider
Electric applies in all countries the same HR policies and processes
regarding career management, training, diversity, health&safety…
as well as the Responsibility and Ethics Dynamics program and the
R&ED line (see pages57-59 ).
Action plans in major localizations
European Works Council (EWC)
Schneider Electric senior management and the employee
representatives of the European countries decided to set up the
Schneider Electric European Committee (renamed European
Works Council) under the terms of a collective agreement signed
on January28, 1998.
This European channel for dialogue has enabled the management
to make more effi cient decisions by giving employee representatives
the opportunity to be informed of such decisions and to understand
their reasons, as well as to put forward proposals to supplement or
improve them.
It has also fostered the emergence of a strong identity, combining
different cultures and having the common aim of working towards
social and economic progress within the companies in the Group
at European level.
In2012 a new European Works Council agreement (Amendment
no.3) came into force and is now the reference. It redefi nes the
geographical and business scope of the European Works Council,
and incorporates the provisions of the 2009 Directive on European
Works Council.
2012 is also the beginning of a new 4-year term for the country
representatives at the European Works Council. In March, all
members followed a dedicated training.
In 2012, the European Works Council met an unprecedented
ten times in three different locations in Europe: nine restricted
committee (“Bureau”) meetings and one plenary session. Four out
of the nine Bureau meetings were held through conference calls
as Amendment no. 3 opened this possibility for information-only
meetings. This allowed an active social dialogue at European level
along with the in-depth discussion on key topics.
Group Works Council, France
The Schneider Electric Group Works Council France is a forum
for economic, fi nancial and social dialogue between senior
management and the representatives of the employees from all
French subsidiaries.
In 2012, the Group Works Council for France enhanced its
information and understanding of business stakes and strategy of
Schneider Electric, through 6 meetings all along the year. Besides
the ordinary meetings, additional meetings were held within
the framework of Connect program and French Territory GPEC
agreement.
Pursuing the same objective, the Committee continued its program
of site visits:
•New R&D centre in Carros (February);
•SEA Aubenas for its expertise in vacuum interrupters (July);
•DINNOV laboratories settled in Grenoble on current innovations
(November).
Social dialogue in the United States
In North America, regular communication takes place with both
union and non-union employees on key business topics and trends
affecting their jobs. Company offi cials meet on a semi-annual basis
with key international union leaders to inform them of competitive
issues impacting the Company’s business, and to ensure alignment
with the Company’s business strategies and challenges, on a local,
regional and global basis.
The year 2012 was in the middle of the three year collective
bargaining agreement with the three international unions in
the United States as well as with the union that represents the
employees at Juno Plant in Chicago. Meetings are held twice a year
with the international representatives of these unions to maintain
communications and to review business strategies.