Form 20-F - Gerdau

Members of the Board of Auditors are elected at the ordinary shareholders’ meeting for one-year terms, and
may be re-elected. In accordance with the Brazilian Corporate Law, the board of auditors may, at the request of any of
its members, ask independent auditors to provide explanations or information and investigate specific facts.
All members of the Board of Directors and the Gerdau Executive Committee, as well as the executive
officers, are elected for one-year terms, with re-election or re-appointment permitted. Members of the Board of
Directors are appointed at the General Meeting of Shareholders while members of the Gerdau Executive Committee
and executive officers are elected at meetings of the Board of Directors.
D. EMPLOYEES
The following table presents information on the geographical distribution of Gerdau’s employees:
Direct Brazil Abroad Total
1998 8,639 1,172 9,811
1999 8,495 3,361 11,856
2000 8,436 3,654 12,090
2001 8,631 3,565 12,196
2002 12,978 5,048 18,026
2003 14,263 5,334 19,597
Outsourced* Brazil Abroad Total
2003 8,609 243 8,852
* ‘Outsourced employees’ refers to individuals hired by other companies to develop or exercise activities that
are not the core business of the Company.
As of December 31, 2003, the Company had 19,597 employees in its industrial units excluding the two joint
ventures, Sipar and Gallatin Steel. Of this total, 73% are based in Brazil and the remainder in units in South and North
America, which have 472 and 4,862 employees, respectively. The number of employees in Brazil grew considerably
in 2002 due to the full consolidation of the Açominas plant. In North America, the number of employees increased in
2002 as a result of the incorporation of employees of the former Co-Steel into Gerdau Ameristeel Corp.
As unions in Brazil are organized on a regional rather than a national basis, the Company has no nationally
applicable agreements with its workers. Gerdau believes that its employee pay and benefit structure is comparable to
general market rates. Gerdau also provides its employees with fringe benefits such as health and child care.
Gerdau Açominas seeks to maintain good working conditions at its plants and as a consequence has what it
believes to be a comparatively low employee turnover rate. Due to a strong emphasis on employee training, the
Company attempts to manage any necessary production curtailments through the timing of vacations, rather than
workforce reductions.
Gerdau Ameristeel Corp. has been and continues to be proactive in establishing and maintaining a climate of
good employee relations. Ongoing initiatives include organizational development skills training, team-building
programs, opportunities for participation in employee involvement teams, and an ‘open book’ system of management.
Gerdau Ameristeel Corp. believes that a high level of employee involvement is a key factor in the success of its
operations. Compensation programs are designed to bring the financial interests of employees into line with those of
Gerdau Ameristeel’s shareholders.
Gerdau Ameristeel currently has 4,862 employees. Of this total, approximately 1,000 are represented by
unions in a number of collective bargaining agreements. Agreements with the mill employees expire on various dates,
beginning in February 2004. The first negotiation of contracts was successfully completed at the Whitby, Ontario
facility in Canada, and should form the basis for subsequent negotiations with the remaining mills (two in Canada and
two in the United States).
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