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Employee relations

Essity is committed to fostering a workplace that is safe and that is founded on fair employment practices and mutual respect. We will as a minimum follow all applicable labor and employment laws wherever it operates.

Dialogue with employees

Essity carries out an All-Employee Survey every second year for employees at wholly owned companies. The latest survey was conducted in 2015, and received a response rate of 88.3% (86.3) of the workforce.

The survey covers a total of 47 aspects in nine dimensions. The results are expressed asindexes for leadership, innovation, customer orientation and engagement, as well as an overall Essity index. The index for 2015 was 72 (70) on a scale 0-100.

All managers will prepare action plans together with their employees based on the outcome of the employee survey.

The next employee survey will be carried out in 2017.

Employee relations and union activities

Transparent communication is fundamental to the trust between Essity and its employees, as well as their representatives. Employees are encouraged to raise issues relating to employment and health and safety with their line manager. Our company recognizes the right of all employees to join unions and to partake in union activities. Union involvement varies among our countries of operation, but on average 64% (65) of Essity’s employees are covered by collective agreements.

Global Framework Agreement

In 2013, we signed a new agreement with IndustriALL Global Union. IndustriALL represents 50 million employees in 140 countries in the mining, energy and manufacturing sectors. It was formed in June 2012, combining several union organizations, including the International Federation of Chemical,Energy, Mine and General Workers’ Unions(ICEM), which previously represented Essity employees. The content of the new agreement largely coincides with the previous arrangement with ICEM, although there are now clearer references to ILO conventions. The Swedish Paper Workers Union is also encompassed by the agreement with EWC and IndustriALL.

Discrimination

Diversity and non-discrimination in the workplace are cornerstones of our Code of Conduct. Essity has a system in place for reporting and investigating discrimination incidents and applies procedures to avoid similar incidents in the future.

Compensation

We offer employees a market-tested total remuneration package. Levels vary in each local market in which the company operates.

Organizational changes

The notice period in connection with organizational changes in the Group varies, but averages about five weeks. In connection with organizational changes, Essity works to support the employees affected. This is done through discussions with labor unions at an early stage and by preparing a social action plan that is adjusted to local conditions. The action plan normally includes assistance in seeking employment and/or education. Other tools include severance pay, early retirement and financial incentives for those who find new jobs before the end of the period of notice. Support services may comprise individual career counseling or administrative support.

Leadership and talent management

Our Leadership Platform defines what is expected from all our leaders. The leadership development activities are directly linked to this platform. To enhance specific leadership capabilities, there are five main development programs:

Leadership@Essity: Mandatory one-day onboarding program for all newly appointed leaders. The course focuses on Essity’s strategies, processes and tools, as well as general leadership and expectations placed on leaders. 457 new managers completed the course in 2015.

Core 1: A six-day program to develop leaders that have been in their role for six to 12 months. The program aims to further develop their capabilities to effectively lead others. During 2015, 365 participated in this program.

Creating Value and Driving Business ­Performance: Two courses to further strengthen participants’ capabilities in strategic leadership areas. In 2015, 97 leaders participated in these programs.

Core 2: To develop people’s capabilities to lead in a complex environment, engage people and drive change, Essity developed and piloted a new leadership program in 2014. In 2015, 41 leaders participated.

Other training: Essity has sustainability training programs in place that focus on innovations, claims and communication with the aim of improving the understanding of sustainability’s impact on product and services, customers and consumers.

A global performance management review system

We have a global system for performance review and development planning (GPS) in place. The reviews identify the skills and abilities necessary for employees to achieve the stated targets and whether the individual needs to develop in any specific areas. The objective is to follow up the performance of every employee twice a year. In 2015, 96% (89) of white-collar employees participated in performance management reviews. The corresponding number for blue-collar employees is 86% (75).

Last updated: 6/13/2017