Social data

Our commitment to the United Nations’ Global Compact’s principles on human rights, environment, labor, and anti-corruption, and our recognition of the UN’s Guiding Principles on Business and Human Rights demonstrate our desire to further advance social responsibility in our business.

Our approach to social responsibility is described in connection with our material themes:

Employees

Outotec had 4,340 employees on average in 2016 (G4-10). At the end of 2016 Outotec had 667 employees fewer than the previous year-end, due to cost saving actions, related redundancies and job terminations. Our temporary personnel have at the same time been reduced to about five percent of the total payroll, and the number of full-time equivalent contracted persons working in project execution and services was reduced to 330. We could not report the share of part-time employees of the total workforce because the information has not been included in our HR master data system. Some of the temporary employees are self-employed, typically retired Outotec experts who work shorter periods in customer projects. During annual vacation seasons we hire students as trainees.

In addition to employees, Outotec had 330 (2015: 405) full-time equivalent contracted persons working under our supervision. These contractors are not reported in the employee data.

Employees by employment type 2016 2015 2014
Employees at year end 4,192 4,859 4,571
Employees on average 4,340 4,855 4,776
Permanent employees 3,978 4,534 4,187
Temporary employees, as % of total 5 8 8

n = 4,192 (2015: 4,859), coverage 100%

 

Employees by category Personnel by region

Employees by gender

Employees by gender, % 2016 2015 2014
Share of women among employees 18.7 18.4 18.8
Share of men among employees 81.3 81.6 81.2
Share of women among management* 13.2 13.3 13.1
Share of men among management* 86.8 86.7 86.9

*) n = 1,264 management-level employees, according to Outotec grading

Average age of employees

2016 2015 2014
42.0 41.3 41.0

Labor practices and decent work

Total number and rates of new employee hires and employee turnover by age group, gender and region (G4-LA1)

New employee hires by gender 2016 2016 2015 2015 2014 2014
  # % # % # %
Women 101 16 169 18 N/A* N/A*
Men 545 84 783 82 N/A* N/A*

*) data is not available due to system change

Employee turnover rate by age group

2016
#

2016
%

2015
#

2015
%

2014
#

2014
%

<25

68

48

68

27

66

24

26–30

138

27

101

16

104

16

31–35

174

22

121

14

118

14

36–40

133

19

144

19

92

13

41–45

137

23

109

16

76

13

46–50

94

19

82

15

67

13

51–55

86

19

85

17

41

9

56–60

59

19

39

12

33

10

>60

86

43

49

20

71

31

Total

979

23

798

16

668

15

Employee turnover rate by gender 2016 2016 2015 2015 2014 2014
  # % # % # %
Women 164 21 147 16 127* 15
Men 815 24 651 16 543* 15

*) The total figures for employee turnover by age and gender for 2014 differ slightly due to missing age information on two persons.

Employee turnover rate by region 2016 2016 2015 2015 2014 2014
  # % # % # %
Finland 181 14 132 9 120 9
Germany 47 9 68 12 42 8
Rest of Europe 86 26 72 19 133 35
The Andes 367 46 324 32 216 18
Australia 70 19 74 18 70 15
Rest of the world 228 27 128 13 89 14

The higher employee turnover in 2016 compared to 2015 is partly the result of personnel reductions due to cost saving programs.

Approximately 50% of our employees are covered by collective bargaining agreements. Binding collective agreements are followed in each country where they are applicable to Outotec employees.

Compensation

Total compensation paid out to employees by Outotec in 2016 amounted to EUR 329 million (353). Outotec’s compensation policy is described on www.outotec.com/cg.

142 key employees were part of the company’s share-based incentive program in 2016 (168). In addition, 933 (1,211) employees equaling 27% (27%) of eligible personnel participated in our employee share savings plan. This plan was not offered to employees in Mozambique, Morocco, Qatar and Saudi Arabia, due to legal restrictions or because operations were only acquired during the year. In May 2016, Outotec paid out a total of 233,160 shares and cash payments to cover estimated taxes to 1,417 employees who participated in the employee share savings plan in 2013.

Outotec runs several pension plans in various countries. These plans are mainly classified as legally defined contribution pension plans. Other post-employment benefits include medical arrangements for retired employees in Germany.

Compensation 2016 2015 2014
Wages and salaries paid, EUR million 329.1 353.4 362.8
Ratio of annual total compensation of CEO to median compensation of employees 7.9* 10.3 9.7
Change in annual total compensation of CEO, % -20.2 -2.9 -40.9
Change in annual median compensation of employees, % 4.2 -2.9 -4.4

n = 4,192 (2015: 4,859), coverage 100 %
*) In 2016, Outotec’s CEO changed and the compensation covers three different CEOs, one of them acting. CEO’s compensation does not include severance payment, compensation for unused vacation, salary for notice period or relocation costs due to the change of CEO.

Benefits provided to full-time employees in 2016 (G4-LA2)

Benefits provided to full-time employees, but not provided to temporary, %
FT = Full-time, TEMP = Temporary
EMEA Americas APAC Total
  FT / TEMP FT / TEMP FT / TEMP FT / TEMP
Life insurance 70 / 42 100 / 38 0 / 0 67 / 36
Health care 84 / 65 100 / 38 7 / 7 77 / 53
Disability/invalidity coverage 93 / 64 100 / 38 0 / 20 85 / 52
Maternity/paternity leave 100 / 95 100 / 38 100 / 0 99 / 75
Retirement provision 36 / 0 100 / 38 36 / 0 49 / 4
Stock ownership 96 / 0 100 / 0 64 / 0 93 / 0
n= 2,634 / 149 780 / 21 521 / 29 3,935 / 199
coverage 99 / 98 100 / 100 97 / 71 99 / 93

Minimum notice periods for significant operational changes

The minimum notice periods that must be observed in advance of significant operational changes depend on locations and national legislation, and therefore differ significantly. Notice periods range from two weeks to one year (G4-LA4).

Occupational health and safety

The reporting of health and safety covers Outotec’s premises and employees, contractors working under our supervision and our project sites.

The entire workforce (100%) is represented in formal joint management-worker health and safety committees that help to monitor and provide advice on occupational health and safety programs (G4-LA5). Units that have less than 10 people are represented in the health and safety committees of the closest larger units.

Injury rates and types, occupational diseases, lost days, absenteeism, and work-related fatalities (G4-LA6) 

Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities 2016 2015 2014
Non-fatal injuries arising from or in the course of work 23 41 33
Fatal injuries arising from or in the course of work 0 0 0
Lost-time injury rate (LTIR –per 1 million working hours) 1.8 2.8 1.5
Occupational diseases 1 0 0
Occupational disease rate (per 1 million working hours) 0 0 0
Lost days because of  occupational accidents or disease 304 512 173
Lost day rate (per 1 million working hours) 24.5 35.1 7.6
Absentee rate, % 1.8 1.2 0.9

n = 6,450 (7,157) including Outotec’s employees and subcontractors working under our control on project sites

We have found out that there are cultural differences and variation in the categorization between lost time injuries and total recordable injuries in certain countries. To improve transparency we have also reported total recordable injury rates (TRIR) for 2016.

Total recordable injury rate (TRIR) by region in 2016 (G4-LA6)

Market area LTIR TRIR
North & Central America 1.3 8.0
South America 0.8 1.2
Europe & North Africa 1.9 6.9
Eurasia 0 4.7
Sub-Saharan Africa 4.7 10.4
Middle East and India 0 1.4
China 15.1 18.9
SEAP 0.8 6.7
Outotec total 1.8 5.7

Workers with high incidence or high risk of diseases related to their occupation (G4-LA7)

Health and safety topics are not covered in formal agreements with trade unions (G4-LA8), since they are duly addressed by statutory regulations and laws that Outotec complies with.

Training and education

Our reporting of training hours covers Outotec’s employees. Our learning management system provides information of Outotec’s global training programs excluding blue-collar workers. Training hours on health and safety are compiled from the health and safety reporting system. Average hours of training per year by gender and employee category (G4-LA9) is partly reported. It includes vocational training only due to different data management systems in other types of training. For health and safety training, externally pursued training and Code of Conduct classroom training, the information of gender and employee category has not been collected.

Training

2016

2015

2014

Vocational training and instruction

Number of employees

2,391

2,444

1,301

Hours

12,612

31,788

27,521

Training or education pursued externally and paid for in whole or in part by Outotec

Number of employees

500*

500*

807

Hours

2,850*

3,000*

6,877

Training on health and safety

Hours

92,800

87,277

200,979

Training on human rights issues**

Number of employees

1,223

954

1,104

Hours

673

1,431

3,139

Total training hours

 76,500

 95,499

 131,380

Number of employees  4,192 4,859   4,571
All types of training hours / employee 18.3 19.7 28.7

*) Training on MS Office365 tools
**) Human rights issues were covered in Code of Conduct e-learning and classroom training. In 2016 the number of hours of training declined, even though more employees underwent training, because in previous years there were more classroom training sessions with a longer duration than e-learning sessions.

 

Vocational training by gender Vocational training by employee category
   
   

Diversity and equal opportunity

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity (G4-LA12)

Employees by age group 2016 2015 2014
Executive Board, %      
<30 years old 0 0 0
30-50 years old 25 31 57
>50 years old 75 69 43
Senior management, %      
<30 years old 0 0 0
30-50 years old 56 59 60
>50 years old 44 41 40
Middle management, %      
<30 years old 1 3 2
30-50 years old 66 64 66
>50 years old 33 33 32
Specialists, %      
<30 years old 26 22 19
30-50 years old 70 59 61
>50 years old 23 19 20
Blue-collar workers, %      
<30 years old 28 30 31
30-50 years old 54 54 52
>50 years old 19 16 15
Board of Directors, %      
<30 years old 0 0 0
30-50 years old 25 0 0
>50 years old 75 100 100

n = 4,192, coverage 100%

 

The share of men in the mining and metallurgical industry has traditionally been high, which partly explains the current low share of women.

When Outotec starts a new operation in a new country, an expatriate employee is typically assigned to integrate the new operation into Outotec. Our goal is nevertheless that senior management should be hired locally. In 2016, 50% (63%) of our market areas had local leaders. The decrease is due to the fact that a permanent leader for one market area has not yet been appointed, and the position is temporarily held by an expatriate.

Share of women by employee category, %  

Suppliers

Outotec had approximately 3,300 (3,400) active direct suppliers in 2016. Our total spend on customer-related purchasing in 2016 was EUR 486 million (629 million). The total spend decreased as the company’s order intake and sales declined due to the weaker market situation.

The share of indirect spend decreased in 2016 because external services were used less than in the previous year, in line with our cost saving program. 

Our spending on local suppliers in 2016 amounted to EUR 310 million (EUR 270 million), equivalent to 64% of our total supply spend (G4-EC9). The largest shares by country – each amounting to EUR 10–50 million – were spent in the USA, China, Australia, the UAE, Sweden, South Africa, Mexico, Chile, and the UK. The remaining local spend was distributed among 45 countries. 

Supply spend by category  

For more information, see also: