I. Table of Contents - ISS

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Company Overview
In 1995 ISS established the European Works Counsel as an in-house forum for dialogue between ISS
management and employee representatives across Europe. In 2004, 31 employee representatives
from 17 countries were engaged in European Works Counsel meetings.
While ISS generally seeks to reduce its employee turnover, the relatively high rate of turnover
characteristic of the facility services industry provides a certain amount of operational flexibility.
Through natural attrition ISS is able to reduce staff costs in response to fluctuations in market demand.
As a result of its local scale and density ISS can shift employees among existing customers. EU law,
which under certain circumstances allows ISS to pass on site staff to the new service provider when a
facility services contract is lost, provides additional operational flexibility.
In the last five years ISS has not experienced any material disruption to its business as the result of
strikes, work stoppages or other labour disputes. In 2003, ISS signed a letter of agreement with the
international service workers union UNI (Union Network International), under which ISS pledged to
ensure good working standards in all of its countries of operation, and UNI pledged to expose
companies in the industry that violate basic employment principles and applicable legislation.
Table 26: Key Employee Statistics
2002 2003 2004 (1)
Number of Employees 248,500 245,000 273,500
Share of Fulltime Employees (%) 53 55 57
Staff Turnover Blue Collar Workers (%) 51 50 50
Staff Turnover White Collar Workers (%) 18 19 24
Total Staff Turnover (2) (%) 49 49 49
Share of Employees with less than One Year Seniority (3) (%) - 31 31
Share of Employees with One to Five Years of Seniority (3) (%) - 42 39
Share of Employees with more than Five Years of Seniority (3) (%) - 27 30
Note:
(1) Approximate figures derived on the basis of 99% of the total number of employees.
(2) Calculated as the number of employees who leave during the year divided by the average number of employees for the year.
(3) At end of period.
Source: ISS
H. Sales and Marketing
ISS employs approximately 1,000 persons worldwide who are engaged in ISS’s sales and marketing
efforts. ISS’s sales and marketing effort is predominantly organized and conducted through its country
organizations. Each country has adapted its sales and marketing efforts to the challenges of its
individual market.
ISS maintains a centralized corporate marketing department that coordinates ISS’s branding strategy
and its company-wide marketing initiatives. In addition, this department is responsible for sales and
account management relating to multinational customers and other key clients and the marketing of
ISS’s integrated facility services to a select group of European multinational companies, comprised of
existing and potential customers. ISS intends to continue to expand this international sales force in
the future.