sain t-gobain annu al report 2008 annual report

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Construction Products
The Construction Products Sector saw its workforce decrease
by 4.5% or 2,392 people, like-for-like. Most of the reduction
came in the United Kingdom, Spain and the United States,
where the crisis had an immediate impact on markets.
In the US, for example, the Gypsum Division was forced
to reduce its workforce by 527 employees. The Pipe Division,
with Saint-Gobain PAM, held steady overall despite
some reductions in Spain and the United Kingdom.
At current scope of consolidation, the integration of Maxit’s
teams increased the Mortars workforce to 9,792 people
from 5,135 at year-end 2007.
Building Distribution
Total employment in the Building Distribution Sector
declined by 4% or 3,061 people like-for-like, as all
of the banners in France, the United Kingdom, Spain,
Benelux and Germany reduced headcount in response
to falling demand in the construction markets.
Packaging
Employment in the Packaging Sector remained relatively
stable, declining by just 2% or 323 people, like-for-like.
This primarily reflects the Sector’s commitment to driving
continuous improvement in operations and efficiency,
which has enabled a steady reduction in its workforce.
By Delegation
On a comparable scope of consolidation basis, the number
of employees declined in almost every Delegation during
the year. The steepest reductions occurred in the regions
most affected by the market slowdown, such as Spain/
Portugal/Morocco (down 13.8% like-for-like), the United
Kingdom and Ireland (down 11.8% like-for-like) and North
America (down 9.1% like-for-like). Only Brazil and India
reported an increase in the number of employees.
Separations
The separation rate held steady at 18.3% in 2008.
• Attrition rose slightly, to 13.2% from 12.9% in 2007.
• The resignation rate stood at 7.1%, down 0.6 points.
The rate is traditionally higher in the Building Distribution
Sector, where turnover is more frequent, but at 9.2%,
it was still below the industry average. Resignations are
likewise more common in Eastern Europe (11.6%)
and emerging Asia (9.1%), where buoyant job markets are
conducive to higher turnover. In most cases, separation
reviews are performed to identify the reasons for leaving.
• The overall termination rate stood at 5.8% in 2008,
a 0.6-point increase over 2007. The rate primarily rose
in Europe, where business slowed sharply in late 2008.
Job protection plans
Layoffs or restructuring programs are carried out only
when they are unavoidable to preserve the financial health
of the subsidiary or Sector in question. In such cases,
the Group’s size and diverse business base offer a wide
variety of opportunities for inplacement transfers.
In France, Saint-Gobain Développement is spearheading
an active support process designed to place as many
of the affected employees as possible in new positions.
In particular, local job centers deliver ongoing, personalized
support, even after the work site has closed.
Procedures are also in place to address the professional,
material, psychological and personal consequences of losing
one’s employment. Depending on their needs, for example,
employees enjoy access to additional training, relocation
assistance, spousal job placement or support for pursuing
a personal project.
Hiring
The hiring rate declined to 16% from 20.1% in 2007,
with the most significant reductions occurring
in the Building Distribution and Construction Products Sectors.
Hiring rose only in Asia, in both developed and emerging
markets, and was stable in Latin America. The economy
in these regions was not as hard hit by the crisis in late 2008,
with the result that our local business remained firm over
the period. By contrast, regions that felt a sharper slowdown,
such as Western, Central and Eastern Europe and North
America, had to scale back operations and therefore hiring.
Use of temporary workers
and subcontractors
Temporary work
Temporary workers are used primarily when there is
a lack of visibility for certain incoming orders, recruitment
is temporarily hampered or absent employees need to be
replaced. The absenteeism rate was 4% in 2008, versus 3.4%
in 2007. The most common causes of absenteeism are illness,
maternity leave and workplace accidents.
Suitable for filling vacancies of short or unforeseeable
duration, temporary workers are used to replace absent
employees, bridge a transitional period or respond quickly
to a major need for manpower. Hours worked by temporary
personnel represented 6.5% of total hours worked in 2008,
a decrease from 7.3% in 2007, with the decline reported
in all of our industrial operations.
Fixed-term employment contracts are more effective
for assignments spanning several months, such as to replace
workers on maternity leave or extended sick leave, or to handle
spikes in production resulting from large orders.
Saint-Gobain - 2008 Annual Report