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Human capital management

Employment

In the 12 months ended 31 December 2016 average monthly employment in the Group was 2 041 job equivalents and was about 0.4% lower than in the 12 months ended 31 December 2015. Out of the average number of employees, 1032 job equivalents fell to direct labour, whereas 1009 job equivalents to white-collar staff. Compared with the same period of 2015, the number of manual workers was 5.1% smaller, while non-manual workers 2.8% smaller. 
The year-end employment in the Group was 1990 employees. Compared with the end of 2015, the number of people employed decreased by 168 persons (7.8%). In respect of employment structure by education, the number of personnel with higher education, mainly engineering, decreased by 45 persons. The year-end number of employees holding degrees accounted for 41.3% of their total number, compared to 40.1% as at the end of December 2015.

Effectiveness of human capital management

Productivity of employment, calculated as the relation of sales revenues and average monthly employment, was 476 thousand PLN and was 109 thousand PLN lower than in the comparative period of 2015, when it amounted to 585 thousand PLN. Profitability of employment, calculated as the relation of gross profit to average monthly employment, was 34 thousand PLN in the 12 months ended 31 December 2016, which was 3 thousand PLN less than in the same period of 2015 (30 thousand PLN).

Recruitment and selection

In the period from January through December 2016, together 172 new people were employed, which was by 269 persons fewer than in the comparative period of 2015 (by 61.0%).

In the period between 1 January and 31 December 2016, contracts of employment were terminated with 336 employees, of whom 29 persons were eligible to old–age pension or disability pension. In the period between 1 January and 31 December 2015, contracts of employment were terminated with 340 employees, of whom 19 persons were eligible to old–age pension or disability pension. From February through December 2016, employment contracts with 6 persons were terminated because of gross violation of employer’s disciplinary rules. (with 2 people in the comparative period of 2015). There were only a few cases of termination of employment at the employer’s will. In 2016, employment contracts were terminated with 7 persons (with 17 persons in the comparative period of 2015) pursuant to Articles 10 of the Act on Particular Rules of Terminating Employment Relationships with Employees for Reasons not Related to the Individual Employees Concerned of March 2003.
As at 1 April 2016, 11 employees of the liquidated KONIP Sp. z o.o. were transferred to the Head Office of ELEKTROBUDOWA SA, pursuant to Article 23(1) of the Labour Code.

Information about the system of control of employee share ownership plans

The Group had no employee share ownership plans.

Motivating systems

The parent company has a Collective Labour Agreement in place, concluded on 4 January 2004 between the employer and the trade unions active in ELEKTROBUDOWA SA. The Collective Agreement defines the remuneration strategy and remuneration rules applicable to all employees of the Company, except for its managing and supervising bodies.

Development and training

Development of employee’s qualifications and competence is a key for the growth of the Group. In the 12 months ended 31 December 2016 the Group invested 1 582 thousand PLN in training of its personnel, which gives an average of 775 PLN per one employee. The costs of training had a 1.1% share in the 2016 remuneration fund.
Expenditure on training principally concerned the policy of constant development of the project management-focused corporate culture and also the issues of enhancing professionalism of work teams, particularly vocational training for electricians, and improving language skills.
In December 2016 ELEKTROBUDOWA Group signed an agreement with Gdańska Fundacja Kształcenia Menedżerów on organizing Master of Business Administration courses for the managing staff of the Company, and with MT&DC on organizing a series of training courses within the frame of Project Management Academy. The programmes will be launched at the beginning of 2017 and will cover a group of over 50 managers.

Organisation and general sustainable development goals

Aware of functioning in the network of mutual ties and dependence, and of the environment that impacts its activity and the impact that it has on the environment, the parent company, ELEKTROBUDOWA SA regards sustainable development as a significant element of its activity. 
In 2016, coordination of activity in the broadly understood sphere of Corporate Social Responsibility was entrusted to one of Members of the Management Board.

His tasks related to the CSR area include in particular:

  • assessment of economic, social and environmental impacts of the Company on its environment,
  • preparation of CSR strategies and programmes, defining the measures of effectiveness of CSR actions,
  • taking decisions and actions in respect of CSR and accountability for such decisions and actions,
  • building up the involvement of managers and employees in CSR actions,
  • consulting the efficiency and completeness of CSR actions with local communities and stakeholders,
  • preparation of CSR reports and communicating the CSR actions to the Company’s stakeholders.

For ELEKTROBUDOWA SA, being a socially responsible company means taking the responsibility for the effects and impact of its decisions and activity on the community and the environment.
ELEKTROBUDOWA SA complies with the requirements of “Best Practice for GPW Listed Companies”, guided by the values defined in the Company’s Code of Ethics.

Since 2010 the parent company has been a member of the UN Global Compact (a global network of organisations which declare cooperation and development within 10 principles of responsibility in the areas of human rights, labour standards, environment and anti-corruption).

As a member of the UN Global Compact, ELEKTROBUDOWA SA has committed itself to:

  • support and respect the protection of internationally proclaimed human rights.
  • make sure that they are not complicit in human rights abuses.  
  • uphold the freedom of association,
  • elimination of all forms of forced and compulsory labour,
  • support abolition of child labour,
  • effective counter-acting discrimination in respect of employment,
  • preventive approach to environmental challenges,
  • undertake initiatives to promote greater environmental responsibility,
  • encourage the development and diffusion of environmentally friendly technologies,  
  • work against corruption in all its forms, including extortion and bribery.  

In 2016 the Company was included in the stock-exchange index of companies, RESPECT Index for the tenth time in a row, what is a proof of continual improvement in practices from the scope of corporate and information governance and relations with investors.

Sustainable development aspects

Within the sustainable development strategy the parent company, ELEKTROBUDOWA SA lays considerable emphasis on:

Environmental aspects 

The main goal concerning environmental aspects consists in preventing pollution through application of new, environment-friendly technologies, rational waste management, emission and effluent control and reducing the consumption of natural resources. 
ELEKTROBUDOWA SA is identifying the essential areas of direct and indirect impact of its activity on the natural environment on a current basis. The analysis of environmental impact allows to take effective measures limiting the scale of the Company’s impact on biodiversity in the places where our activity is carried out and reducing the use of raw materials, water, fuels and energy.
Every year the Company prepares the Environmental Management Plan, the targets and tasks of which are assessed and then further actions are taken in order to mitigate negative impacts on the environment.

Labour policy

Principal objective of the labour policy is the application of standards provided in the Universal Declaration of Human Rights. ELEKTROBUDOWA SA does not use forced or compulsory labour, does not employ children and also counteracts any forms of discrimination in respect of employment and kind of performed work. ELEKTROBUDOWA SA respects the right of employees to associate and to collective bargaining. The company reasonably collaborates with society partners, undertakes preventive actions in the sphere of occupational health and safety, counteracts loss of employment, establishes honest principles of remuneration and offers benefits in excess of privileges prescribed by law, and also applies relevant procedures of investigating complaints and grievances and disciplinary procedures. 
Like in previous years, in 2016 cooperation with the Company’s trade union organisations was very good. Throughout that period there were no labour disputes. Neither was the Company a party to collective bargaining with the trade union organisations active in the company.
One of the essential elements of the Company’s labour policy is providing traineeship for secondary and tertiary school students and helping graduates to enter the labour market by offering to employ them. In 2016 the programme Practical Training Live, targeted at students of technical universities, was continued. In December 2016 the Company signed an agreement with the State University of Applied Sciences in Konin on cooperation in dual teaching.

Social commitment and charity

The main goal in respect of social commitment is engaging the stakeholders and integration with local communities. ELEKTROBUDOWA SA is maintaining the policy of open communication with local communities in social consultation related to the operating activities of the Company and immediately informs the local communities about an potential hazards. 
ELEKTROBUDOWA SA maintains its conscious policy of supporting social activities in the scope of charity, social policy, health protection and promotion, acting for the benefit of national minorities, science, education, culture, art, protection of national heritage and culture protection, promotion of physical education and sport, promotion and organization of voluntary service. 
Supporting social activity is exercised through donations in cash or in kind for public benefit entities or the entities performing public tasks. In 2016 the Company earmarked 103 thousand PLN on charity, most of it for health protection and promotion. For many years the Company has been cooperating with the Municipal Kindergarten No. 24 with Integrated and Special Classes in Jaworzno in respect of funding the purchase of rehabilitation equipment for disabled pre-school children. The Company does not directly donate individuals, political parties, government or self-government administration entities.

Business environment

As far as business environment is concerned, the main objectives include: transparency of operations of ELEKTROBUDOWA SA, and informing the company’s shareholders, on a current basis, about conducted business activity and the economic and financial situation of the company. 
ELEKTROBUDOWA SA complies with the requirements of “Best Practice for GPW Listed Companies 2016”. The Company applies anti-corruption procedures and provides training for its employees concerning ethical supply chain and anti-corruption practices. 
The Company evaluates its key suppliers and contractors in respect of human resources, OHS regulations, corruption preventing and environmental practices.

Reporting

Since 1996 the parent company ELEKTROBUDOWA SA, as the company listed in the Warsaw Stock Exchange, has been meeting its information obligation to publish, in the form of current and periodic reports, defined therein information relating to the Group, giving a fair, true, and complete view. 

In 2016 the Group was submitting, on a current basis, reports in the form enabling investors to assess the impact of the disclosed information on the asset, economic and financial situation of the Group. The parent company, ELEKTROBUDOWA SA published the required current and periodic information through the Electronic Data Transfer System ESPI and Electronic Information Base EBI.
Beside financial reporting, the parent company ELEKTROBUDOWA SA is also committed to non-financial reporting. As a member of UN Global Compact, since 2009 the Company has submitted annual reports on its progress in implementing the principles of the Global Compact Initiative, assuring about its constant support for the Initiative and informing about actions taken in the areas of 10 Principles of Global Compact.
In 2016 the parent company prepared and published on its website the social report summing up the actions in the sphere of CRS currently taken by the Company. The report has been based on the international sustainability reporting standards Global Reporting Initiative (GRI 4), focusing on those aspects which reflect significant economic, environmental and social impacts of the organization and which have substantial influence on the company’s evaluation by the stakeholders and on decisions taken by them.

Business ethics

The parent company, ELEKTROBUDOWA SA has a Code of Ethics in place, which exemplifies key ethical values of the Company. Each employee of ELEKTROBUDOWA SA is obliged to read the Code of Ethics and adhere to its recommendations. The Company and employees acting on its behalf are obliged to comply with laws and respect the rules of social coexistence and good manners in the countries where the Company conducts its business operations. ELEKTROBUDOWA SA does not tolerate any acts which are illegal, unethical or threatening the interests of the Company.
Implementation of the Company’s objects in accordance with the principles set in the code of ethics is manifested by establishing in 2016 a function of Fraud Risk Manager whose duties comprise: identification of the areas of business activity which are susceptible to fraud, and also conducting systemic actions aiming at detecting and examining the reasons of irregularities, fraudulent or corruptive acts, and appointing persons responsible for different areas of such actions and defining their scope of responsibility. 

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