10. Labor practices (LA)

Management Approach – Employment

Geberit’s prime objective is to acquire and retain the right employees for the company. Geberit sees itself as an attractive employer with an open corporate culture that offers international development opportunities at the interface between the craft, engineering and sales sectors, see www.geberit.com > Career > What we offer.

Employees enjoy attractive employment conditions. In 2017, salaries and social benefits amounted to CHF 746.8 million (previous year CHF 702.0 million). The employees can also participate in share participation plans at attractive conditions, see Financial Report > Consolidated financial statements Geberit Group > Notes > Note 17 and Remuneration report.

G4-LA1 Employee fluctuation

The average fluctuation rate (in terms of employees with permanent contracts, without natural departures and long-term leaves of absence) was 9% (previous year 11.3%). Including natural departures, it was 10.9% (previous year 12.7%). For key figures on fluctuation by age group, gender and region, see Key figures sustainability > Employees and society.

G4-LA2 Benefits

Geberit essentially grants the same benefits to full-time and part-time employees. However, employees with temporary contracts are not always entitled to the same benefits as permanent employees. For example, employees in Switzerland with temporary employment contracts of less than three months are not insured in the pension fund. Geberit bases its employee benefits on country-specific standards.

G4-LA3 Return to work and retention rates after parental leave

Geberit implements the currently applicable legal framework conditions. It also attempts in individual cases to find solutions that are as suitable as possible for the affected person and their team.

100% of all permanently employed women are entitled to paid maternity leave, and 5.5% or 120 women made use of this in 2017. 68 women or around 57% returned to Geberit following their maternity leave.

99% of all permanently employed men are entitled to paid paternity leave, and 3.9% or 265 men made use of this in 2017. 260 men or around 98% returned to Geberit following their paternity leave

Management Approach – Occupational Health and Safety

The health and safety of employees is of major importance. Geberit wants to gradually get nearer to the target of having healthy employees within an accident-free company. Each of the 30 production plants and logistics has a safety manager. The sites Rapperswil-Jona (CH) and Pfullendorf (DE) also have an appointed health manager. Since the beginning of 2017, the “Geberit Safety Team” – a team of experts from all production areas – has also been playing an active role in addressing the issue of occupational health and safety.

Using 2015 as the reference year, the aim is to halve the number of accidents by 2025. By then, the AFR (Accident Frequency Rate) is to be reduced to a value of 5.5 (accidents per million working hours) and the ASR (Accident Severity Rate) to 90 (number of days lost per million working hours). The key figures are reviewed on a monthly basis at the production plants. Since the start of 2017, the Group Executive Board has also been provided with a compact report on a quarterly basis. In addition, all plants are to implement the OHSAS 18001 standard for occupational health and safety by the end of 2018. Occupational safety has also been part of the annual appraisal of plant managers since 2013.

In the Geberit Safety System (GSS), processes are defined that are applicable throughout the Group and aim to enhance the operational safety of employees on an ongoing basis. The two processes “Risk assessment of workplaces” and “Safe handling of quartz dust” have been implemented uniformly throughout the Group since 2017. In 2017, work also began on implementing a software-based solution for capturing and systematically analysing accident data, the aim being to create a sound, comprehensive stock of data and a more efficient process.

As part of its Group-wide efforts to support employees’ health and well-being, Geberit also offers its employees precautionary healthcare opportunities through various offers and activities. These include, for example, sports facilities, anti-smoking trainings, health check-ups, massage services, dietary and health tips, presentations on health-related issues and workshops on targeted and correct relaxation. A comprehensive vitality programme is established at the sites in Jona (CH), Pfullendorf (DE), Pottenbrunn (AT), Ruše (SI), Kolo and Wloclawek (PL). The focus is placed on promoting personal vitality strategies with an attractive range of offers in the five fields of action exercise, nutrition, mental fitness, energy and vitality.

Furthermore, reintegration counselling is offered, which aims to get people back to work as soon as possible in the event of long-term illness. Managers are specifically trained in this respect. Examples of individual support include counselling in Rapperswil-Jona (CH) to assist with problems ranging from on-the-job pressure, partnership and family problems to debt issues, and the telephone helpline created in the USA to discuss problems at work in complete confidentiality.

For objectives and measures concerning employees and occupational safety, see also Sustainability strategy.

G4-LA5 Percentage of total workforce represented in health and safety committees

89.7% of all employees worldwide are represented through an occupational health and safety panel or safety committee at their site, in which employer and employee representatives can discuss occupational health and safety issues. The occupational health and safety panels are carried out on behalf of the General Management and involve all levels of the organisation as well as various specialist roles and areas (including company physicians, works council, occupational safety specialists, representatives of occupational health and safety unions).

G4-LA6 Accidents, occupational illness and lost time

The Group-wide absenteeism rate based on regular working hours for the reporting year was 4.76% (previous year 4.60%). Illness-related absences accounted for 4.62% of this rate (previous year 4.46%) and 0.14% was related to occupational accidents (previous year 0.14%). The statistics show only those occupational accidents that occur during working hours or business travel and lead to lost working time of one working day or more. A total of 205 accidents were recorded (previous year 202 accidents), equivalent to 4,065 lost working days due to occupational accidents (previous year 4,305 lost working days). There were no serious or fatal accidents.

The accident frequency rate (AFR) and the accident severity rate (ASR) are recorded in a standardised manner. These rates are calculated as the number of accidents or the number of lost working days per one million hours worked. The accident frequency rate (AFR) increased by 5.1% in 2017 to 10.3 (previous year 9.8). The accident severity rate (ASR) decreased slightly by 2.7% to 203.8 (previous year 209.4).

All key figures concerning the absenteeism rate by region can be found under Key figures sustainability > Employees and society.

G4-LA7 Assistance regarding serious illnesses

There are certain operational activities at Geberit, particularly in ceramic production, involving an increased risk of silicosis (dust disease). The risks lie particularly in the handling of raw materials, glazing and further processing (e.g. grinding). Geberit makes substantial efforts towards either avoiding the exposure of employees to these risks (e.g. through the installation of glazing robots) or minimising this exposure (e.g. through the use of special extraction devices, dust masks or the provision of training in correct behaviour at the workplace). This topic is also systematically addressed as part of the Geberit Safety System and certification according to OHSAS 18001. Furthermore, Geberit participates in the NEPSI programme as a member of FECS, a sub-organisation of Cerame-Unie (European Ceramic Industry Association). This includes monitoring the exposure of employees to quartz dust and the implementation of best practices.

G4-LA8 Health and safety topics covered in agreements with trade unions

Geberit attaches great importance to a high level of health and safety for its employees. To this end, it cooperates with authorities, trade unions and employers’ liability insurance associations on a country-specific basis. Written agreements exist at the majority of production and sales companies with parties such as trade unions and employee representatives. These normally cover topics such as personal protective equipment, complaints procedures, regular inspections, education and further training and the right to refuse unsafe work.

Management Approach – Training and Education

Qualified and committed employees are essential for the future success of Geberit. The company therefore sets particular store on the solid education and further training of all employees and on equal opportunities.

Young people can start their careers at Geberit with a commercial, industrial or technical apprenticeship. The aim is to impart all the skills that are required for apprentices to pursue their chosen careers in a professional, independent and responsible manner.

New employees are introduced to the company and its products through various job orientation programmes on joining the company. These range from individually designed introduction talks in various departments to the one-week basic course that provides practical knowledge about Geberit in small groups.

The standard Performance assessment, Development and Compensation (PDC) process has been in place since 2012. This standardised process enables the company to gain an overview of the available potential. PDC has several goals: reinforce the performance culture, increase transparency, and recognise and promote talent more effectively in order to make the organisation future-proof. Except for the employees who work directly in production at the plants, the vast majority of employees has now been incorporated into the PDC process.

G4-LA9 Employee education and further training

In the reporting year, employees across the Group attended on average around 11 hours of internal and external education and further training (previous year 10 hours). For key figures by gender and employee category, see Key figures sustainability > Employees and society.

The transfer rate of apprentices to a permanent employment relationship was 83%. The target remains 75%.

G4-LA10 Programs for skills management and lifelong learning

The Potentials Management Programme remains a priority. The aim is to selectively identify talents throughout the company and support them along their path to middle or senior management. Initial experience of managerial or project management responsibility is part of this. The problems investigated in project work as part of the programme are geared towards the reality at the company and provide the decision-makers involved with concrete bases for action. The Potentials Management Programme is intended to help fill at least half of all vacant managerial positions within the company with internal candidates. In 2017, this was achieved for 76% of all Group management vacancies.

All apprentices are essentially required to work at several sites during their training. As a global company, Geberit promotes the internationalisation of employees. Experience abroad and the transfer of know-how are an advantage for both employees and the company. Therefore, apprentices have the option of working abroad for a period of six months on completion of their apprenticeship.

There were also 154 internships and 24 diploma placements offered in 2017.

For further information, see Business Report > Business and financial review > Financial Year 2017 > Employees.

G4-LA11 Performance and career development of employees

In everyday working life, the personal and professional development of each individual employee is encouraged in a variety of ways. This covers all areas of work, functions and age groups. Just under 80% of all employees received appraisal interviews in 2017 at which development opportunities were also identified and discussed. As part of the standardised global Performance assessment, Development and Compensation process (PDC), employees receive a performance assessment and/or agreement of objectives at least once a year.

Management Approach – Diversity and Equal Opportunity

In its Code of Conduct, Geberit sets store on promoting diversity and creating a culture that enables all employees to contribute their full potential to the company. The company strives for diversity and promotes equal opportunities irrespective of gender, ethnic origin, skin colour, age, religion and nationality.

Geberit pursues a fair and non-discriminatory employment practice in accordance with prevailing national and international law. Recruitment, training courses and promotions depend solely on individual achievements, skills and potential regarding the requirements of the position in question

G4-LA12 Workforce diversity

The proportion of female employees at the end of 2017 was 23% (previous year 24%), and for senior management this figure was 8.4% (previous year 9.2%). The six-member Board of Directors has one female member. No further data on minority group membership is currently being collected as Geberit and its stakeholders do not consider this to be relevant. For key figures on diversity in terms of gender and age structure, see Key figures sustainability > Employees and society.

Management Approach – Equal Remuneration for Women and Men

Protection of the principles of equality is anchored in the Geberit Code of Conduct. This includes the prohibition of discrimination against any employee on the basis of gender. Fair and equal pay for women and men is guaranteed as follows:

• Job assessment by function in accordance with the proven Hay method on the basis of know-how, thinking ability and accountability. All jobs are pooled in a Group-wide grading system. The resulting grade is the basis for determining an employee’s pay. This guarantees gender-neutral, fair salary structures.
• Binding wage agreements with set pay grades at many Geberit sites.

G4-LA13 Gender-based differences in salaries

According to the annual survey of all Geberit Group companies, no differences between the basic salaries of women and men exist anywhere within the Group.

Management Approach – Supplier Assessment for Labour Practices

See chapter Suppliers.

G4-LA14 Screening of suppliers using labour practices criteria

See chapter Suppliers.

G4-LA15 Impacts for labour practices in the supply chain

See chapter Suppliers.

Management Approach – Labour Practices Grievance Mechanisms

Employees who openly address irregularities which represent breaches of applicable law, ethical standards or the Code of Conduct are acting correctly and in accordance with the Geberit Code of Conduct. The Group Executive Board of Geberit must be informed of problems in the area of integrity in order to be able to manage these swiftly and reliably. By openly addressing such issues, Geberit employees are contributing to their own protection, that of their colleagues and the protection of Geberit’s rights and interests.

As a general rule, employees should seek a personal meeting with their supervisor. The Geberit Integrity Line is available to all employees as a whistleblower hotline. The service is intended to enable employees to anonymously report cases such as sexual harassment or when a corrupt payment is being covered up. The Integrity Line is operated by an external company with experience in this area, and is available around the clock seven days a week.

G4-LA16 Grievances about labour practices

In the reporting year, the Geberit Integrity Line recorded one significant incident, which was subsequently investigated. This resulted in the discovery of shortcomings at a local company, which were then rectified.