Yara and sustainability

Labor practices and decent work indicator points 2012

LA1 – Total workforce by employment type, employee contract and region, broken down by gender

Africa Asia Brazil Europe Latin America
North America and Trinidad
 Region not given All Regions
Permanent employees - female 51 123 141 1,003 83 114   1515
Permanent employees - male 252 323 924 4,185 283 570   6,537
Total - Permanent employees 303 446 1,065 5,188 366 684   8,052
Non-permanent contracts female 1 5 61 304 2 24   397
Non-permanent contracts - male 9 14 375 904 15 107   1,424
Non-permanent contracts - gender not given  0  0  67  402  0  0   469 
Total non-permanent contracts 10 19 503 1,610 17 131 2,290
Total workforce 313 465 1,568 6,798 383 815   10,342
 

Note: Non-permanent contracts – gender not given; this relates to some countries where due to local legislation some employees choose not to disclose gender.

At the end of 2012 Yara had 8,052 permanent employees worldwide. This represents an increase from 7,627 employees in 2011, which reflects both organic growth as well as acquisitions. The increase was fairly evenly distributed among all regions. Staff turnover was about 8.5% in 2012. As in previous years, staff turnover is highest in Brazil. Like last year, around 19% of Yara’s permanent employees are female, which is related to the historical male dominance in this sector of industry.

LA2 – Total number and rate of employee turnover by age group, gender and region

Africa Asia Brazil Europe Latin America North America
and Trinidad
All regions
Permanent employees hired by Yara
Female permanent hired by Yara 21 32 24 88 6 11 182
Male permanent hired by Yara 113 129 180 238 58 71 789
Age above 50 34 28 8 25 4 4 103
Age below 30 18 57 87 103 23 37 325
Age between 30-50 82 76 109 198 37 41 543
Permanent employees leaving Yara              
Female permanent leaving Yara  1  31  30  78  4  19  163
Male permanent leaving Yara  10  38  176  205  22  72  523
Age above 50  1  3  9  161  2  15  191
Age below 30  1  26  75  27  10  27  166
Age between 30-50  9  40  122  95  14  49  329

LA3 – Benefits provided to full-time employees that are not provided to temporary or part-time employees by major operations.

Benefits provided to full-time employees that are not provided to temporary or part-time employees differ based on country. The graphs below display benefits provided to permanent employees and non-permanent employees, ranging from disability coverage, flexible working hours, health care facilities and life insurance.  

Benefits for permanent employees

Benefits for permanent employees View graph

Benefits for non-permanent employees

Benefits for non-permanent employees View graph

The majority of Yara's operations provide a minimum of disability coverage for permanent employees, as well as health-care facilities. Other types of benefits for permanent and non-permanent employees, such as educational assistance, savings plan and travel insurance, are provided in some countries. 32.5% of our reporting countries also provide maternity leave to non-permanent employees.

LA4 – Percentage of employees covered by collective bargaining agreements

Yara values its good relationship with employees and their organizations and works with them on a regular basis. In 2012 about 74% of Yara employees were covered by collective bargaining agreements, down from 76% in 2011. Asia and Africa increased percentage-wise over the last year, Asia from 19.6% to 20.2% and Africa from 0.0% to 25.7%. Europe and Latin America decreased percentage-wise, Europe from 86.4% to 85.4%, and Latin America from 23.1% to 15.8%. Brazil at 100% and North America at 37.9% remain as last year.

Percentage of employees covered by collective bargaining agreements
Africa 25.7%
Asia 20.2%
Brazil 100.0%
Europe 85.4%
Latin America 15.8%
North America and Trinidad 37.9%
Total Yara 74.3%

LA 5 – Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements

Notice periods are included in the collective bargaining agreements in 16 of the 40 reporting countries. Of these, 13 countries have specified number of weeks in their collective bargaining agreements, ranging from 2-14 weeks.

LA 6 – Percentage of total workforce represented in formal joint management-working health and safety committees that help monitor and advise on occupational health and safety programs

All production sites have a mandatory health and safety committee that covers all of the employees working on the site. Within Yara offices there are varying degrees of formal health and safety committees depending on local legislation. 24 of the 40 reporting countries have a health and safety committee in place. 4670 employees are covered by the mandate of the local health and safety committee, which based on number of permanent employees equals 58%, up from 42% in 2011.

LA 7 – Rates of injury, occupational diseases, lost days and absenteeism and number of work related fatalities by region and by gender 

In 2012 Yara achieved a TRI rate[1] of 5.0 for employees and contractors combined, up from 4.0 in 2011 and above the target of a TRI at 3.5 or lower. The TRI rate includes fatalities, lost-time injuries, restricted work cases where employees and contractors were allowed to carry out work different from their normal duties, and medical treatment cases. The LTI rate[2] for Yara employees and contractors ended at 2.9, also increasing from 2011 (1.9). Breakdown by gender shows that 96% of the incidents and accidents  involved men, 4% women.

Yara’s ambition is zero injuries. The company’s accident rate remains better than the average for European fertilizer producers. Yara is further strengthening the implementation of safety culture and focusing on critical areas to turn the incident rate down again.

Yara experienced two accidents with fatal results in 2012. In Colombia, a contractor employee working at height on a roof unhooked his harness and fell to the ground. He acted spontaneously to help  his colleague who had fallen from the roof but was safely suspended by his safety harness. In Ghana, a worker fell backwards onto the floor of a truck while carrying bags. The fall led to spinal injuries. The injured person had to be moved by car to several hospitals and during the second transfer he passed away. 

Yara recognizes the severity of such incidents and works continuously to improve safety practices and safety culture by systematically enforcing strict operating procedures and developing  employee and contractor competence.

Lost-time injury rate (employee and contractors)

Lost time injury rate View graph

Total recordable injury rate Yara total (employees and contractors)

Total recordable injury rate View graph


Health, safety performance 2008 - 2012
2008 2009 2010 2011 2012
LTI rate employees 1.0 1.3 1.0 1.3 2.2
LTI rate contractors 2.0 2.0 3.0 3.1 4.7
LTI rate employees and contractors 1.2 1.5 1.6 1.9 2.9
TRI rate employees 3.5 2.7 2.2 3.0 3.5
TRI rate contractors na na 7.3 6.1 8.5
TRI rate employees and contractors na na 3.8 4.0 5.0
Sickness rate production sites (percent) 3.8 4.3 3.5 3.6 3.6

In 2010 Yara introduced Total Recordable Injury rate as the primary safety KPI instead of LTI and included contractors in this rate. This has  contributed  to the TRI and LTI rate increase as our contractor companies gained an improved understanding of the importance of reporting all incidents in order to improve.

There has also been an increase in reporting within parts of the Downstream Operation as understanding there has also improved. Some of the increase in injury rates can be attributed to better reporting. With Yara Management following up also on lesser severity injuries, this has increased the focus on improving safety performance. By more consistent reporting, Yara has created a platform from which it will drive the next level of improvement.

In 2012 the company continued to develop and implement technical and operational procedures, also specifically for contractors as a response to the increasing trend in contractor TRIs. Yara also continued to develop the Behavior Based Safety process, focusing on reducing at risk behavior and increasing safe behavior. The number of safety contacts, for example, safety walks by managers, has also increased, resulting in a greater level of visible commitment towards achieving operational discipline.

The Upstream segment focused on developing leadership and technical competence through training initiatives for engineers, managers, supervisors and operators. In addition to occupational safety, improvements to technical safety have been achieved as Yara’s Process Safety program is realized. In the Downstream and Industrial segments, Yara continued to raise safety awareness through hazard identification, reporting and follow-up.

To improve Yara safety performance to the next level, in 2012 the company prepared to launch a campaign that will lead to a development in its safety culture. The intention is that leaders, employees and contractors take responsibility to be ‘Safe by Choice’.

Absence due to sickness at Yara’s production plants remained unchanged at 3.6 % in 2012, the same as in the previous year. Joint venture companies are included in the statistics in cases where Yara has operational responsibility.

Sickness rate at production sites

Sickness rate at production sites View graph

LA8 - Education, training, counseling, prevention and risk control program in place to assist workforce members, their families and community members regarding serious diseases

None of Yara's operations involve risks of incidents of serious occupational diseases. Yara provides treatment for workforce members, their families and community members. 42.5% of Yara's offices have programs in place for education, training, prevention and risk control if serious diseases were to occur.

For example, one European country has tailored its working environment to support employees with a specific personal illness so that they are able to continue their work in waste water treatment.

LA9 - Health and safety topics covered in formal agreements with trade unions

Health and safety topics are covered in all trade agreements between Yara and its unions.

Yara has set up an European Works Council to promote co-operation between the management and European employee representatives, to meet the company’s economic, social and environmental challenges. This agreement has been amended with a Safety Agreement, to share the same commitment to safety and to reach the goal of zero accidents. Safety principles such as application of site safety rules, joint health and safety committees, and employee participation and involvement are covered.

LA10 - Average hours of training per year per employee by employee category

In 2012 Yara spent approximately NOK 30 million on external training, equaling about NOK 3668 per employee. In 2012 we launched a new mandatory Ethics Training Program for all employees.

Furthermore, Yara decided to extend its online learning platform to include a wide range of learning activities. These activities, under the heading of YaraLearning, will be available for employees in 2013. Contents will be aligned with business and employee needs.

LA 11 – Programs for skills management and lifelong learning that support the continued employability of staff and assist them in managing their careers

Skills and career management are part of the Talent Development process that was rolled out globally to 7,200 employees in 2012. During a mid-year review, the employee discusses development areas for his/her current job and career ambitions in a 3-5 year perspective with his/her manager. The result is an agreed development plan for the coming 12 months with 1-3 focus areas and a number of development actions.

The table below shows the percentage of countries that provide assistance and support to employees when retiring or terminated. Yara follows legislative and union guidelines in regard to providing programs for skills management for employees. Therefore much of this assistance is provided as a service from the government rather than directly from Yara.

Yes No
Africa 0.0% 100.0%
Asia 0.0% 100.0%
Brazil 0.0% 100.0%
Europe 52.9% 47.1%
Latin America 50.0% 50.0%
North America and Trinidad 75.0% 25.0%
Yara 34.2% 65.8%

The countries that provide assistance programs, provide the below.

Assistance (e.g., training, counseling) on transitioning to a non-working life 21.4%
Job placement services 53.5%
Pre-retirement planning for intended retirees 26.7%
Retraining for those intending to continue working 30.8%
Severance pay 92.9%

55% of our countries provide employee training or assistance programs to upgrade skills, and of the countries that do provide employee training or assistance to upgrade skills, they provide the below.

Funding support for external training or education 79.2%
Internal training courses 83.3%
The provision of sabbatical periods with guaranteed return to employment 13.2%

LA 12 – Percentage of employees receiving regular performance and career development, by gender

There are two global processes for performance and career development; the Performance Management Process and the Talent Development process (called the Talent Development Mid-Year Review). In the Performance Management Process in December/January, performance during the past year is evaluated and goals are set for the coming year. Progress towards these goals are reviewed in the June to August period, when the Talent Development process takes place. The main purpose of the Talent Development Mid-Year Review is to discuss and agree development areas related to the employee’s current job and to future career ambitions, resulting in a 12-month development plan that is followed up throughout the year.

These two processes will be mandatory for all Yara employees and are gradually being rolled out in all parts of the world. In 2012 the scope for the Talent Development Mid-Year Review was 7,431 employees, and 5146 of these employees (69%) had a development plan in place by the end of the year. The scope for the Performance Management Process was 4,971 employees. Of these, 4,465 employees (90%)  had a Performance evaluation for 2012.

Africa Asia  Brazil  Europe  Latin America  North America incl. Trinidad  Total Yara
2012 2012 2012 2012 2012 2012 2012
Number of employees 242 437 1,065 5,258 366 684 8,052
Scope for Performance Plan 36 232 198 3,823 158 524 4,971
Completed plan (signed off by Manager and Employee) 27 129 184 3,455 156 514 4,465
% of employees 75% 56% 93% 90% 99% 98% 90%
Africa Asia Brazil Europe Latin America North America incl. Trinidad Total Yara
2012 2012 2012 2012 2012 2012 2012
Gender
Female 11 58 35 606 14 74 798
Male 16 71 149 1,480 35 174 1,925
Gender unknown 0 0 0 1,369 107 266 1,742

Talent Development

Region Scope Plan in place Completion rate
2012 2012 2012
Africa 264 84 32%
Asia 289 131 45%
Brazil 975 953 98%
Europe 4,997 3,440 69%
Latin America 289 211 73%
North America 617 327 53%
Total 7,431 5,146 69%

LA 13 – Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group memberships and other indicators of diversity

Yara strives to improve diversity in both corporate management as well as board composition. Currently, Yara has nine members on the Executive Management Team. Of the nine members, one member is female, and three are non-Norwegians (Belgian, German and Swedish).
 
The Yara Board of Directors consists of seven members. Of the seven board members, one member is Finnish, and six are Norwegians. Four members are male and three female.

Within the 137 top management positions in Yara, 12 positions are filled by women, 49 are held by Norwegians, 70 by other Europeans, 1 by a North American, 10 by Latin Americans and 7 by Asians.

LA 15 – Return to work and retention rates after parental leave, by gender

Africa Asia Brazil Europe Latin America North America Yara
How many female employees met the requirements of going out on parental leave 4 7 5 73 3 2 94
How many female employees took parental leave 4 3 5 75 3 2 92
How many female employees returned to work after parental leave ended 2 2 9 58 3 2 76
How many male employees met the requirements of going out on parental leave 4 2 51 163 11 10 241
How many male employees took parental leave 4 2 51 147 11 10 225
How many male employees took parental leave 4 2 51 146 11 10 224

Note;
Some of the female employees who took parental leave in 2012, are du to return in 2013 and are therefore not registered in the numbers of "how many female employees returned to work after parental leave ended".

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[1] TRI: Total Recordable Injuries per million hours worked

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[2] LTI: Lost-Time Injuries per million hours worked

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