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Labor Practices and Decent Work Indicators
GRI Indicators LA1, LA4, LA6, LA7, LA10 and LA13
As of year-end 2010, the Advanced Materials Division
had a workforce of 1,229 and the Engineering Systems
Division had 791 employees. Including Corporate employees
the total AMG workforce was approximately 2,039. 1
AMG assesses the diversity of its workforce in terms of
gender and age. The multinational and therefore multicultural
nature of the business means that ethnic diversity
is significant, but because of the difficulty in defining
minority employees in such an environment, the Company
does not collect data on this aspect. Of the total employees
17% are female; 22% are under 30 years of age, 51%
between 30 and 50 and 27% over 50. The metals and
mining industries are traditionally male dominated, and
workforce rationalizations have led to a mature workforce,
both areas of which AMG is mindful. The Management
and Supervisory Boards are currently all male and all
members are over 50 years of age.
AMG respects the freedom of its individual employees
and their rights to join, or choose not to join, unions.
Across the combined Advanced Materials and Engineering
Systems Divisions, including corporate staff, 66% of
AMG employees were covered by collective bargaining
agreements. For the Advanced Materials Division 82% of
employees are covered by such arrangements, whereas
in the Engineering Systems Division, which includes a
higher proportion of professional salaried staff, 42% were
in collective bargaining units.
Manufacturing our products safely is a key focus for the
AMG business units—one of our key principles is that
no task is so important that it should put our employees
at risk. AMG has never had a fatal accident in either its
Advanced Materials or Engineering Systems Divisions
since its formation. Our primary measures of safety
performance remain the lost time accident (LTA) rate2 and accident severity rates3 . In 2010 the Advanced
Materials LTA rate was 3.3, a 13% reduction from 2009.
The Engineering Systems LTA rate was coincidentally also
3.3 for the year representing a reduction of 32%. Overall
the Company LTA rate was 3.3 and while this represents
an improvement of almost 20% over 2009, the Company
will be taking a number of initiatives in 2011 to further
increase the profile of safety and to achieve our ultimate
goal of zero harm to any of our employees. The overall
accident severity rate in the Company was 0.32 in 2010
1 Includes Corporate, Advanced Materials and Engineering Systems Division
employees but not GK or Timminco employees.
2 Lost time accident frequency rate equals the number of lost time accidents
multiplied by 200,000 divided by the total hours worked. Lost time injury was
defined using local regulations and ranged from minimum one lost day to
three lost days.
3 Accident severity is defined as the number of worker-days lost as a result of
disabling injuries per thousand worker-hours of exposure.
50 Sustainable Development
and is unchanged from 2009. Formal Health and Safety
committees with representatives from all levels of the
organization are in place at all major production facilities
and most of the smaller facilities, but not at administrative
and sales offices. Overall, 84% of the AMG workforce
is represented in these committees which are focused on
improving each site’s safety performance.
Lost time accident rate Accident severity
3.77
2009
4.83
3.32 3.32
2010
Advanced Materials
0.26
2009
0.43
Engineering Systems
0.36
2010
0.23
For the first time in 2010 the report includes data on the
development of AMG employees through training. Investing
in our people to develop their skills and maintain our
technical competitive advantage is an important objective
for AMG. Three employee categories were determined
to be suitable to track AMG’s training and the number
of employees in each category, and the data on average
amount of training they received in the reporting period
were collected. Data on corporate employees was not available.
The results were Management (93 employees trained,
averaging 17 hours), Professional, Technical, Sales and
Administration (685 employees trained, averaging 16 hours)
and Production and Maintenance (1089 employees trained,
averaging 19 hours). Across all of AMG, on average each
employee received a total of 17 hours of training time in
2010 (approximately 1% of total hours worked). Categories
of training included technical and professional development,
quality, anti-corruption policies, human rights policies
and health and safety. Because this is the first year of
data collection, AMG believes that not all training has been
captured and plans to make improvements to its systems
in this area during 2011.
Human Rights and Ethics
GRI Indicators HR3, HR5, HR6 and SO3
AMG supports and respects the protection of internationally
proclaimed human rights and will work to make sure
it is not complicit in human rights abuses. As part of
this commitment the Company has surveyed each of its
Advanced Materials and Engineering Systems Division
sites to identify if there is the possibility of freedom of