Employment

Management approach

At Mondi we develop and empower our people to achieve strong performance and personal growth in a dynamic culture that embraces diversity. Given the global nature of our Group, and specific employment equity requirements in South Africa, the management of diversity is dealt with in a separate section – see Diversity. While the management of people is a line function, specialist human resources personnel at a Group, division and operational level provide knowledge, guidance and support to line management as required. Human resources personnel participate at an executive level at Mondi.

We review progress and priorities with leaders on a regular basis and during 2010 we initiated a process to refine and develop our corporate culture, which we would like to be characterised as being dynamic, entrepreneurial, respectful, empowered, responsible, and transparent.

Group employment

At the end of December 2010, Mondi employed 29,000 people across the Group (2009: 31,000). In addition, the Group employed an estimated average of 21,000 contractors during the year.

Recruitment and retention

Employee turnover is not centrally monitored or reported. The measurement of this indicator is the responsibility of the individual operations, and is monitored locally. While turnover levels for the Group remained relatively low, it has become apparent to Mondi – particularly in Europe – that greater attention needs to be paid both to the image of the Group and to attracting young engineers into the business. Increasingly, it has been found that:

• there is a lack of interest in technical disciplines; and
• that paper-making and printing are not sought-after careers for young engineers.

Given that our existing workforce is aging, these factors are a priority for the group in recruiting competent, talented employees in the future.

At a local level, a number of innovative campaigns to counter these trends were undertaken during the year. One of these – at Świecie operation in Poland – involved close collaboration with specialist technical universities, offering young engineers practical workplace experience. Another is the 3G programme at our Ružomberok operation in Slovakia, developed to attract and retain employees across generations. At Neusiedler in Austria, a programme to attract and retain new apprentices was put in place. In South Africa, the turnover level is also low, resulting predominantly from natural attrition. This turnover level is adequately addressed by developing local people through initiatives, such as learnerships, apprenticeships and on-the-job training.

Employment practices and collective bargaining

We uphold the basic labour rights enshrined in the Fundamental Rights Conventions of the International Labour Organization (ILO), ensuring fair employment practices. Our remuneration practices are competitive and do not discriminate on the grounds of age, race or gender. Benefits provided to full-time employees include membership of pension and provident funds, access to medical care/schemes, study assistance, maternity and paternity leave, annual bonus, overtime pay and profit bonuses.

The Group recognises the right of employees to freedom of association, supports the practice of collective bargaining, and promotes the relevant structures and relationships where this is both appropriate and local practice. Where applicable, we enter into meaningful and transparent relationships with unions and other employee representative forums. In South Africa and in many of the E&I countries, collective bargaining is enshrined within legislation. In Europe, Mondi has implemented a forum for dialogue where council leaders meet members of Mondi’s top management on an annual basis.

While collective bargaining practices differ from country to country, they are embedded within the functioning of the Group, and are supported by appropriate policies. Our sustainable development policies, management standards and performance requirements on global employment and corporate citizenship, which comply with local legislation, ensure that employment practices are fair and employees are represented appropriately. Please see the Governance of sustainability section for more information about our SDMS. The minimum separation notice period is typically 30 days and any grievances or disciplinary actions are addressed through our disciplinary and grievance systems.

In South Africa

In South Africa, Mondi is a member of various bargaining councils including the Statutory Council for the Paper Packaging Industries Bargaining Forum and the Bargaining Council of the Wood and Paper Sector, under whose auspices national relations between employers and unions are managed. Three senior Mondi human resources executives are represented on these councils. Around 52% of the South African workforce is represented by various unions, with the majority being members of the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (CEPPWAWU), National Union of Metal Workers South Africa (NUMSA), United Association of South Africa (UASA) or Solidarity. Wage negotiations were successfully concluded, effective June 2010, for a maximum 8% increase.

Training and development

We support the training and development of our employees and contractors, not only so that they may undertake their jobs safely and productively, but also so that they may fulfill their potential. In 2010, a total of 1.65 million hours of employee and contractor time was devoted to training and development. The safety training particularly focused on critical tasks as determined by one of our safety indicators for 2010. The information is not captured by teh employment category and is not deemed to be particularly meaningful as employment category varies across the Group.

Mondi continues to expand its employees’ skills base through a three-tiered approach comprising:

• bursaries and other forms of financial assistance towards higher education for employees, their children and the general public;
• recognised training and development courses on a part-time study basis through approved tertiary institutions; and
• selected training courses, seminars and programmes for knowledge upliftment, offered both internally by the company, inter alia through the Mondi Academy, and externally by approved training institutions.

Training and awareness programmes in respect of safety, human rights and other labour-related issues are undertaken on a regular basis at an operational level.

The Mondi Academy offers leadership, technical, business and personal development courses in Austria, Poland and Russia. In South Africa, the Mondi Academy will be launched in 2011, and will focus on leadership development, problem solving, finance, negotiation skills and conflict resolution.

Mondi’s skills development programme includes long learning initiatives aligned to career path development plans; learnerships in pulp and paper technology; fitting and turning, electrical, millwright, instrumentation, boilermaking, rigging and earthmoving equipment mechanics apprenticeships; and the provision of bursaries and study assistance.

In South Africa, employee skills and knowledge upliftment were offered to some 3,420 employees in the fields of legal compliance; safety, health and environment training; pulp and paper technology; operational skills programmes; leadership development; and computer training. Bursaries and study assistance – assistance to employees of the company, their children and the general public (particularly members of the land claim communities in South Africa) – provided support in the fields of engineering, forestry, and paper and pulp technology to 295 people. Annual training needs assessments are conducted in conjunction with a workplace skills plan that outlines training and skills development targets.

Around 40% of employees form part of the Mondi performance management programme and receive regular performance and career development. In addition, Mondi has been expanding the scope of the Performance and Development Review (PDR) process, which provides a platform for managers and employees to discuss their development requirements, to a broader group of employees.

Identifying and developing leadership skills

The process to develop our culture includes a review to simplify our corporate values and what we expect of leaders.

Mondi offers two kinds of leadership development programmes:

• local initiatives designed and implemented at site level; and
• leadership development programmes designed and managed centrally to ensure consistency across the Group.

During the year local initiatives included, for example, a mill development programme for individuals identified as talented (at our Ružemberok operation in Slovakia) and Mondi Knowledge Days (for our Europe & International Division). Centrally driven leadership development activities consist of assessment modules (development centres, assessment discussions), training modules like the Mondi Enhanced Leadership Programme for experienced managers with further potential and the Mondi Leadership Development Programme for junior managers with high leadership potential, the Mondi Senior Sales Development Programme for senior sales managers, and other supporting tools like the “Mondi Mentoring Programme” and the “360 Degree Feedback for Executives” Programme.

Last change: 10.03.2011