Human resources and safety in the workplace

HIRING POLICY, COMPOSITION OF AND CHANGES IN PERSONNEL

It is with growing attention that the group monitors the main data on its workforce, including employees, temporary staff and all other types of contractors and freelancers.

This focus is an extension of the group’s values and is due to the awareness that expertise is not the only key factor in the achievement of objectives, but a series of other factors like corporate climate and constantly enhancing and encouraging professional and human qualities that resources offer and can develop is also crucial.

Throughout the year, management strives for ongoing dialogue with workers on the actual application of contracts, their renewal and the management of employee relations.

At 30 September 2020, MAG Group employees numbered 599, compared to 544 at 30 September 2019, with an annual average higher than previous years, analysed by month and gender below:

The analysis of employees by gender reflects the stratification that the group inherited with the business units it has acquired. It is the group’s policy to strictly enforce equal opportunities, not only with respect to gender, but also religion, personal beliefs, race, ethnic origin, etc..

The group also has temporary staff1 (with temporary employment contracts) in accordance with current laws and with the aim of covering peaks in activities. The number of temporary staff is on-the-whole moderate although, in prior years, activities were particularly intense in some transitional phases, leading to an increase in temporary staff.

The table below shows the average cost of temporary staff of the year, analysed by gender and compared with recent years:

In 2019/20, the group hosted young interns gaining work experience to complete their studies, generally in support functions (administration, finance and HR).

HEADCOUNT CHANGES IN 2019/20

Changes in the headcount in 2019/20 are summarised below:

The table below also analyses the category and gender of new employees hired in the past five years:

Resignations in 2019/20 and previous years are analysed below by age and gender:

Finally, the following table summarises the reasons for termination of employment in 2019/20:

ANALYSIS OF EMPLOYEES BY AGE, SENIORITY AND FUNCTION

The first two tables analyse employee percentages by age:

and seniority for the past three years:

The table below analyses personnel by the functional area2 in which they work, considered thematically and transversally rather than in terms of the overall organisation, which is divided into SBUs:

HIRING POLICY

The principles for the recruitment of new resources are based on ensuring equal opportunities for all candidates, without any discrimination, and following a selection process that is carried out:

  • in various steps by different people,
  • considering many different candidates for the same position.

Candidates are evaluated on the basis of their skills, training, previous experience, expectations and potential, with respect to the organisation’s specific needs.

All newly hired employees are given a copy of the national labour agreement and the MAG Code of conduct.

Employees are analysed by education level below:

Over the past five years, the portion of employees with a university degree remained high (almost 30% of the total), while employees with a high school diploma increased by almost 5 percentage points (from 79.5% to 83.1%).

TRAINING

MAG Group promotes its employees’ professional growth through continuous training. On the basis of feedback from the relevant supervisors, HR management prepares an annual training plan with specific courses to be held.

In 2019/20, 9,587 hours of training were offered, compared to 16,508 hours in the previous year and an average of 12,459 hours in the last five years. Not considering new employee training, which is part of the orientation process and, therefore, linked to changes in the headcount, training hours totalled 5,806, compared to an average of 7,047 in the previous five years. As regards the 2019/20 figures, it should be kept in mind that the restrictions due to the health emergency meant that many courses could not be held on site and the rescheduling of some training initiatives.

The table below analyses hours of training in the previous five years, highlighting the courses held by in-house trainers:

The group has launched and, for the most part, completed a safety in the workplace training programme for workers, nominees and managers, along with periodic updates, in line with the provisions of current legislation.

Specific training initiatives on the management of the health crisis were also rolled out during the reporting period.

The group has also made language training a priority, partly given its focus on international development. Multi-year English courses were commenced in the group’s Italian facilities over the last two years, with students grouped into classes according to their knowledge level. The aim of the training is to improve general language ability and to help in the integration of employees from different nations.

DIVERSITY AND EQUAL OPPORTUNITIES

As noted previously, MAG Group is committed to guaranteeing equal opportunities to all women employees, who make up 14.4% of its personnel, even though its industrial nature has historically meant a prevalence of male employees over female employees, especially among blue collars. The most recent group policies are based on the principles of pluralism and prohibit all forms of discrimination, with the aim of naturally leading to a change in the gender mix of its headcount.

The group is also very attentive to the family needs of its workforce, without jeopardising its organisational and production requirements.

This attention is reflected in its maternity and paternity leave programmes, as provided for by the various legal systems where the group operates, in its approval of requests to reduce work hours (part-time contracts entailing partial days or partial weeks).

The group employs 23 disabled people, who were hired not only to fulfil a legal obligation (under Italian law) but to encourage their inclusion and integration in its organisation.

REMUNERATION AND INCENTIVES

MAG employees are assigned positions in accordance with the standards of the applicable labour agreements (Italian entities apply the national labour agreement for the metal-mechanical industry), integrated by secondary contracts that provide for minimum remuneration based on the employee’s level and a merit-based bonus for blue and white collars.

Junior managers and managers (or equivalent levels under other legislation) participate in an incentive system that include a merit-based component (MBO) and remuneration commensurate with the achievement of collective and individual targets, subject to gates, in accordance with the criteria described in the Errore. L’origine riferimento non è stata trovata.  section (see above).

The pension plans in place for all group employees are those provided for by current legislation applicable where the group operates.

WORK HOURS AND ABSENCE

The working week is 40 hours for the Italian companies and in Canada (Quebec) and 46 in the US. In the first two cases, the 40 hours are divided into five working days from Monday to Friday.

The following table summarises main overtime data:

The following tables give information on total hours of employee absence:

and hours of sick leave:

Similarly to other indicators, these figures are below the averages3 of Italy’s metal-mechanical industry in previous years but are much higher in 2019/20 due to the impact that the health emergency has had on the workforce and on the hours worked by companies in many industrial sectors.

None of the MAG Group companies made substantial recourse to furlough schemes such as CIG (Cassa Integrazione Guadagni) or similar, with the exception of some employees from the Vergiate (VA) facility at Leonardo’s premises4.

WORKER HEALTH AND SAFETY AND WORK ENVIRONMENT

It is a priority for the group to safeguard its workers’ health and safety. The health and safety issue management system is compliant with current laws and regulations in the various legal systems where the group operates and, more generally, is aimed at continuously improving work conditions.

The group’s Italian companies have updated procedures and operating processes to the requirements of Legislative decree no. 81/2008 (Consolidated act on health and safety in the workplace).

The table below summarises data on injuries in the workplace:

The trend is consistent with the group’s policy and the figures are considerably lower than the averages5 of the metal-mechanical industry.

  1. The temporary staff discussed in this section consists of personnel working under the temporary employment contracts permitted under Italian law. It does not include any other forms of employment (e.g. jobshoppers, contract-workers, etc.). ↩

  2. “Management” includes senior management (MD, SBU manager and operations manager) and their support staff. ↩

  3. Source: Federmeccanica, “L’industria metalmeccanica in cifre”, 2017. – Per capita total hours of absence from work: 103.1 and hours of sick leave: 53.8. ↩

  4. The Vergiate (VA) facility made recourse to the furlough scheme (CIG) for a total of 2,127 hours between 16 March 2020 and 28 July 2020. ↩

  5. Source: Federmeccanica, op.cit., Per capita hours of absence from work for injuries: 4.2. ↩