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6 - Training<br />

Breakdown of training expenses by region and type, as a percentage of zone payroll costs.<br />

Training Management General Core<br />

budget training training know-how<br />

training<br />

Europe** 4.66% 7.66% 11.96% 80.38%<br />

North America 3.34% 5.00% 2.00% 93.00%<br />

South America* 3.83% 8.50% 27.50% 64.00%<br />

Asia 3.93% 13.87% 35.55% 50.58%<br />

** Excluding Euromaster and Pneu Laurent<br />

* Excluding plantations<br />

As in 2003, the Group’s training effort was focused on core<br />

know-how, in line with its policy of promoting the acquisition of<br />

skill.<br />

7 - Disabled workers<br />

In most countries, companies are required by law to fill a<br />

statutory percentage of jobs with disabled staff. Where this<br />

percentage is not reached, companies are required to make<br />

a financial contribution. As a matter of principle, <strong>Michelin</strong> Group<br />

promotes employment of disabled people and to this end, adopts<br />

a mix of solutions: employment of disabled workers (for example<br />

1.5% in Brazil, 2% in the United States of America, around 3%<br />

in the UK and 6.1% in France), recourse to subcontractors<br />

mainly staffed with disabled persons (for example in Spain<br />

and Poland) and financial contributions to ad-hoc statutory institutions,<br />

as in Hungary.<br />

8 - Corporate citizenship<br />

In most countries where it operates, <strong>Michelin</strong> Group makes<br />

financial contributions to a number of associations in the field of<br />

sports, vocational training, culture and charity. Each year, the<br />

Group spends some €25 million on local community events and<br />

charity.<br />

In Europe, Group contributions to local life vary from country to<br />

country and are in general substantial as well as sustained. A<br />

€300,000 contribution was made to the Spanish Red Cross after<br />

the attacks on Madrid on March 11, 2004.<br />

In North America, <strong>Michelin</strong> contributes to associations and local<br />

communities in the form of financial contributions and volunteer<br />

work. Upwards of US $1 million are earmarked every year for<br />

this purpose, in such areas as social training, environmental,<br />

safety and living environment programs.<br />

In Nigeria, <strong>Michelin</strong> plays an active role at local level including<br />

maintenance of medical equipment, power and water supply,<br />

contribution to the running costs of schools and sports clubs and<br />

the handicapped children’s hospitals for an overall yearly amount<br />

of some €500,000.<br />

In Asia, <strong>Michelin</strong> made a US $2 million donation to victims of the<br />

tidal wave in December 2004.<br />

9 - The vital role of sub-contracting<br />

In 2004, third-party services, cleaning of facilities, machinery and<br />

working outfits, security, handling and storage, waste elimination,<br />

IT and telecom operations and administrative services)<br />

amounted to the equivalent of 4.1% of payroll.<br />

10 - <strong>Michelin</strong> European Development:<br />

an actor of regional development and<br />

job creation<br />

<strong>Michelin</strong> Development, the Group’s job search program, is active<br />

at local level in every region where the Group operates.<br />

In 2004, <strong>Michelin</strong> Development set up agencies in France (Société<br />

d’Industrialisation et de Développement Economique – SIDE),<br />

Spain, Germany, Italy, the United Kingdom, Russia, Poland and<br />

Hungary, and one is being set up in Roumania. With twenty<br />

dedicated staff and an overall budget of €8 million, in 2004,<br />

<strong>Michelin</strong> Development supported projects with a job creation<br />

potential of a thousand or so jobs in the mid-term.<br />

11 - Community relations, vocational<br />

training, associations<br />

In 2004, a series of guidelines on the nature and importance<br />

of its involvement in the life of neighbouring communities were<br />

circulated in <strong>Michelin</strong> sites worldwide. The three priority areas<br />

are as follows:<br />

• improve mobility (through public awareness campaigns on road<br />

safety for children and teenagers such as “Junior bike” in<br />

Europe);

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