bold spirit - ArcelorMittal South Africa

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60 ArcelorMittal South Africa Annual Report 2010 Human Resources management continued Plans are in place and budgets have been approved to roll out a variety of campaigns to sustain communication and to boost employee morale in the year ahead. hold seats on various committees, including the Safety, Health and Environment and Employment Equity Committees. Management meets with union representatives on a monthly basis and senior trade union members are involved in negotiations on wages and conditions of service. The two-year Collective Labour Agreement signed in 2008 lapsed in 2010. In March 2010 we renegotiated a new agreement with unions resulting in a 7.5% salary increase and a housing allowance increase of 10% for the three lowest categories. The overall cost impact of this agreement was 7.8% We recognise the importance of maintaining open and transparent dialogue with employees, particularly during difficult periods, and we continue to engage with employees through various structures and forums. Personal growth is a strong motivator for most people, especially for our professional staff. This factor − combined with the shortage of skills in the country − was the prime reason we maintained our skills development and training programme through the economic crisis period and continue to invest substantial sums in this area. Identifying employee concerns Information obtained through engagement surveys, and our performance on critical human resources indicators, have highlighted the following material human resources issues: • Employee morale • Attracting external talent • Employment equity • Remuneration Attracting external talent is dealt with in the section ‘Growing a robust skills pipeline’, while employment equity is dealt with in the section ‘Socioeconomic equity’. The rest are dealt with below, as well as the aspect of career development. Employee morale The negative effects of the economic downturn, cost cutting, tightening of budgets, unfavourable press coverage and government’s open criticism of the company’s pricing structure have led to uncertainty among employees and a drop in employee morale. We are aware of the negative impact of these issues on our people and taken active steps to boost employee morale, starting with clear and regular communication. Plans are in place and budgets have been approved to roll out a variety of campaigns to sustain such activities. In particular, our senior managers have been encouraged to respond to employee concerns at local level. The global company carries out biannual group-wide climate surveys, testing employee views on the state of the company. Specific action plans are drawn up after a group-wide communication process.
61 ArcelorMittal South Africa Annual Report 2010 Specific interventions to address issues around recognition and reward (including non-monetary recognition) and career development raised in the employee survey, are dealt with below. We have reintroduced an employee recognition programme as part of our short-term reward strategy alongside the annual individual and business performance review cycles. This new programme will ensure that we acknowledge and reward employees’ outstanding performance that contributes to superior business results. The programme will reward employees through monetary and non-monetary awards across all levels in the organisation. The programme is an integral part of our employee value proposition and forms part of our total rewards and benefits philosophy. Remuneration Remuneration was raised as one of the most significant areas for improvement in the last employee survey. We recognise that competitive, market−related salaries are crucial to attracting and retaining the best people. We conduct two external remuneration surveys per annum in order to analyse the competitiveness of our salary scales against market benchmarks. This process informs our total rewards framework leading to specific interventions. During the year, we conducted an analysis of the effectiveness of our total reward model (share scheme and other benefits), and the impact of our internal parity policy. We expect to complete this exercise in early 2011 and effect indicated changes during the course of the year.. During 2010 we paid average annual increases of 8% to non-bargaining category employees and 7.5% to bargaining units. Personal career development We strongly believe that part of developing a robust skills pipeline lies in providing existing employees with career development opportunities, and we have implemented various platforms to facilitate this process. All employees receive regular performance and career development reviews. An internal competency mapping system currently allows us to see at a glance which courses individual employees in the bargaining unit need to attend, while nonbargaining employees have specific developmental requirements which are raised at their performance management discussions. This information is currently being consolidated into a single system that will highlight which training programmes each employee needs to attend. We are also in the process of compiling a training life-book that will be included in employee induction packs, mapping out the various career paths open to them in the company and outlining the courses required to achieve certain career goals. Human rights We do not have operations in regions where the abuse of human rights is a risk. The ArcelorMittal Group launched the human rights policy to all employees along with the other human resources policies that were refined during the year.
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Brand values Our goal is to provide
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