System-ID: s_11_0

Social Responsibility

Employees

In the Slovenian based companies of the Gorenje Group the number of employees decreased by almost one tenth in the year 2010. The reduction was most evident in the companies characterised by high-volume production. The main reasons for the reduction are adjustments to the number of employees in response to demand and consequently the production, changes in the technology, and complexity and rationalisation of business processes. The educational structure of the employees who were newly employed in the companies of the Gorenje Group last year shows an increase in the complexity of business processes. The scope of employment was significantly lower than in the previous years, but mostly staff with higher professional education were employed than in the past.

Staff    
     
 2010200920082007
Total number of staff11,17410,90711,43211,456
Home Appliances9,0428,7419,1539,261
Home Interior9269911,1341,155
Ecology, Energy and Services1,2061,1751,1451,040
Staff - Slovenia 7,4508,1048,5978,913
Staff - abroad3,7242,8032,8352,543
New employment186161489915
Average employment period total (years)21.5821.7521.0820.42
Average employment period in Gorenje (years)17.7517.8317.1716.33
Average age (years)42.3342.5041.9141.08
Average absence from work (hours)525592529520
Average absence from work - sick leave (hours)140112134126
Average salary (in EUR) - gross1,2311,0681,0931,018
Average salary (in EUR) net820721737681

In 2010, the number of employees increased considerably in the production companies abroad and at the end of the year it amounted to 2,185 employees. The most significant factor for this increase is the integration of the Asko Group into the Gorenje Group. In Slovenia, 6,330 employees worked for Gorenje in the same period. At the end of 2010, a total of 8,515 persons, or four-fifths of all employees worked in the production companies of the Gorenje Group.

Structure of employees by countries

The major part of employees (84 percent) worked within the companies of the Home Appliances Division, eight percent in the companies of the Home Interior Division and eight percent in the companies of the Ecology, Energy and Services Division.

Structure of employees by divisions

At Gorenje, our responsibility for our employees is primarily understood as care for their social security. It has gained importance when the reduction of the number of employees is required. Due to the cancellation of employment contracts special emphasis has been placed on the provision of social security to dismissed employees in the last year. The majority of these employees will retire in compliance with the provisions of the “former” Pension Insurance Act.

In cases of termination of employment we strived to timely inform employees of the purposes and enable them to search for new jobs. The employees of the company Gorenje Tiki, in Ljubljana were informed about the closing down of the company six months before their employment contracts were cancelled. We concluded an agreement about additional termination benefits with these employees and assisted some of them with their job searches by performance of additional activities in co-operation with the Employment Service of Slovenia. Some works councils and a series of informative - consulting meetings were organised to inform them of their rights upon the cancellation of an employment contract, various possibilities of employment and provision of social security. We believe that in this way the degree of uncertainty was reduced with the majority of such employees and we helped them to find new jobs.

The increase in the average age of the employees temporarily stopped in the last two years, but it is still relatively high. Due to the low volume of employment and the increase in the retirement age, it is expected that the average age will start increasing again in the future. High average age of the employees is the main reason for a relatively high absenteeism rate as well as the increase in workload that cannot be avoided due to competition requirements. Special attention, concrete activities and solutions are, therefore, paid to the ergonomic arrangement of workplaces and working conditions. Working groups successfully deal with the search for solutions in this field and these groups include colleagues from the field of technology, production, human resources and occupational safety and health. Our commitment to continual improvement of the working environment is evidenced also by the allocation of substantial funds to this field during the economic crisis.

Similar trends apply also to the education and training of the employees to which Gorenje traditionally devotes much of attention. This enables quick and efficient introduction of changes in the production, technological and business processes and provides a high level of effectiveness also in the later stage of a professional career.

We at Gorenje believe that constant improvement in the educational level of our employees is one of the keys to the control of strong competition in our most important markets, enlargement of qualifications and encouragement of their creativity. The scope of scholarships for secondary schools, and studies at colleges and universities has been increased. Scholarship applicants are recruited mostly in schools, training and fairs. Scholarship recipients have the possibility of undergoing practical training at Gorenje. The Company provides relevant data required in the preparation of seminar projects and graduation theses, and some of our leading experts also act as mentors to students.

Movement of average net salary in Slovenian companies, in EUR

The average salary in Slovenian companies increased by just over one-tenth in the year 2010. One of the relevant reasons for the increase is that the production volume was reduced in 2009 - until September and consequently, the salaries were lower. The new increase in the production volume brought about new requirements for higher salaries. The increase of the lowest salary up to EUR 600 was agreed with the employees, a fixed allowance was introduced and the temporary reduction in salaries was eliminated, which was one of the anti-crisis measures. The consequence of this situation is significant uniformity of salaries, especially for workers performing less complex work.

At the time of the temporary cessation of work in October 2009 and in the period that followed, several meetings with the representatives of the trade unions and employees were held in Gorenje. The need for direct and relevant communication with the employees emerged. It became evident that the quantity and contents of the information provided to employees was not the concern, but rather the lack of confidence in and directness of the information communicated. As a result, meetings with the employees are now organised more frequently and the contents of these meetings are explained with respect to the needs of the employees.

Movement of labour costs in TEUR
Occupational safety

In the Gorenje Group the system of occupational safety and health is organised in compliance with the OHSAS 18001 standard. The system has been certified in three production companies (Gorenje, d.d., Gorenje - IPC and Gorenje Orodjarna). The parent company obtained the certificate in 2006, Gorenje IPC and Gorenje Orodjarna in the year 2007. Operation in compliance with the requirements of the standard is checked during internal and external annual audits.

Measures for the reduction of the noise level have been constantly implemented in the scope of occupational safety and health in working environments. Safety - technical inspections of work equipment are performed on a regular basis. At present, the information support has been introduced (the TREF programme). It involves management in the field of safe and healthy work enabling efficient care of all statutory records in this field. Risk assessments on workplaces have been up-dated in compliance with the plan.

Occupational accidents in Gorenje, d.d.
      
 20102009200820072006
      
Number of accidents186195193124130
Frequency (F)2023231818
Severity (S)438560609484451
Source: Data by Gorenje Group.
Frequency - days of absence due to illness per million hours.
Severity - number of occupational accidents per million hours.

In co-operation with an authorised medical doctor the improvement of ergonomic working conditions has continued in individual programmes and working environments. When planning new production lines a certain number of jobs are planned also for handicapped workers. Employees trainings for safe and healthy work is periodically organised. It has been supplemented by practical training relating to the workplace. In 2010, 1360 employees took part in training courses.

Over 7000 employees and their family members regularly participate in various sports- recreational activities that are organised by the sports club that has operated for several years. In the year 2010, preparations for the performance of new preventive activities for the employees began and these activities will be implemented in select health resorts during the year 2011.

In the year 2010, the average salary increased by just over 10 percent.