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.

Employees (GRI 102-8)

 

Outotec had 4,146 (2016: 4,192) employees at year end 2017, which was 46 employees fewer than the previous year-end. Temporary personnel accounts for about five percent of the total payroll. Some of the temporary employees are self-employed, typically retired Outotec experts who work shorter periods in our customer projects. During annual vacation seasons, we hire students as trainees. The average age of employees was 42 years.

In addition to employees, Outotec had 302 (330) full-time equivalent contracted persons working under our supervision in project execution and services. These contractors are not reported in the employee data.

Compensation

 

 

The total compensation paid out to employees by Outotec in 2017 amounted to EUR 326 million (2016: 329). Outotec’s compensation policy is described in our Corporate Governance Statement 2017.

The ratio of annual total compensation of CEO to mean compensation of employees was 8.7 (2016: 7.9), which was 10% higher than in 2016. The annual total compensation ratio is calculated for all employees globally. Country-specific information was not available in the master data system. The calculation included the mean base salary. In 2016, Outotec’s CEO changed and the compensation covered 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.

94 (142) key employees were part of the company’s share-based incentive program in 2017. In addition, 795 (933) employees equaling 20% (22%) 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. In May 2017, Outotec paid out a total of 126,445 (233,160) shares and cash payments to cover estimated taxes to 1,222 (1,417) employees who participated in the employee share savings plan in 2014.

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.

Collective bargaining agreements (GRI 102-41)

60% of our employees are covered by collective bargaining agreements. This information was collected with a separate questionnaire sent out to all our locations. Binding collective agreements are followed in each country where they are applicable to Outotec employees.

Coverage by collective bargaining agreements by region, %

EMEA

78

Americas

37

APAC

0

Total

60

n= 4,146 employees

Benefits provided to full-time employees (GRI 401-2)  

Benefits by   region, %

P = permanent,   TEMP = temporary

EMEA

Americas

APAC

 

Total

 

P

TEMP

P

TEMP

P

TEMP

P

TEMP

Life insurance

71

45

100

63

0

0

66

38

Health care

80

59

100

63

36

2

77

48

Disability/invalidity coverage

92

59

100

77

96

2

94

50

Parental leave

98

94

100

77

96

2

98

73

Retirement provision

88

45

100

51

95

79

91

53

Stock ownership

94

0

100

0

60

0

90

0

n=

2,650

150

723

35

553

48

3,926

233

Coverage

100

100

100

100

96

84

99

96

Minimum notice periods for significant operational changes (GRI 402-1)

The provisions for consultation and negotiations with employees are included in the collective bargaining agreements in some of the countries where Outotec has operations. In Finland, the collective bargaining agreements include provisions for consultation and negotiations lasting from two to six weeks; in Australia four weeks, in Sweden four weeks, in Chile 30 days, and in Brazil 12 weeks. The minimum notice periods that must be observed in advance of significant operational changes depend on locations and national legislation, and therefore differ significantly. In Finland, the notice periods range from two weeks to six months, and in other countries, the notice periods range from two weeks to one year.

Workers representation in formal joint management-worker health and safety committees (GRI 403-1)

Outotec has a QEHS responsible person in each location with more than 10 employees. 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. Units that have less than 10 people are represented in the health and safety committees of the closest larger units.

Occupational health and safety

Injury rates and types, occupational diseases, lost days, absenteeism, and work-related fatalities (GRI 403-2)

 

The lost-time injury rate per 1 million work hours, including employees and contractors, improved to 1.7 in 2017 (2016: 1.8).

The lost day rate was higher in 2017 because there were a couple of long lost-time cases. In 2017, we had 2,410 contractors working under our control on project sites.

There are cultural differences and variation in the categorization between lost time injuries and total recordable injuries in certain countries, for this reason we have started reporting both LTIR and TRIR.

Health and safety topics covered in formal agreements with trade unions (GRI 403-4)

Health and safety topics are not covered in formal agreements with trade unions, because they are duly addressed by statutory regulations and laws that Outotec complies with.

Training

Average hours of training (GRI 404-1)

 

Our reporting of vocational and Code of Conduct training hours covers Outotec’s employees. The health and safety training hours cover employees and contractors working under our supervision on project sites. Only the training provided by Outotec is included in this report. Data on training pursued by individual Outotec employees externally is not reported as data is not stored into our systems.

Our learning management system including vocational and Code of Conduct training does not provide information of the training hours by gender and employee category.  It collects the information on Outotec’s own global training programs and e-learning modules. Local training data is reported by HR persons in the market area offices. Human rights issues were covered in Code of Conduct e-learning and classroom trainings. 

Training hours on health and safety are compiled from the health and safety reporting system.

We have significantly increased the health and safety training for both employees and contractors in 2017. In 2017, the training on cyber security was mandatory for all employees and 89% of the personnel participated in it.

Percentage of employees receiving regular performance reviews (GRI 404-3)

Performance   reviews, %

by gender

Female

99

Male

99

by employee   category

Senior management

100

Middle management

100

Specialists

100

Blue-collar workers

N/A*

n = 3,290 *) Performance reviews of blue-collar workers have not been registered in the data system, and they are not included in the above numbers.

Diversity

 

Diversity and equal opportunity (GRI 405-1)

 

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

We have not identified any minority or vulnerable groups amongst our employees.

Proportion of senior management hired from the local community (GRI 202-2)

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 2017, 60% (50%) of our market areas had local leaders.

Ratio of basic salary and remuneration of women to men (GRI 405-2)

Ratio of basic salary of women to men by   employee category

Male

Female

Senior management

1

0.77

Middle management

1

0.82

Specialists

1

0.80

Blue-collar workers

1

N/A

The ratio of basic salary and remuneration of women to men could not be fully reported, as data was not available by significant locations of operations and about blue-collar workers.

Supply chain data

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