Employee relations

SCA in Russia has developed a special training programme for new employees, including both legal issues and SCA's internal rules for fair competition and ethical business principles.

Dialogue with employees

SCA places value in having well-informed employees and creates opportunities for them to freely express their views. The importance to SCA of effectively engaging with employees makes employee surveys an important tool for evaluation of operations and providing a basis for improvement.

In many markets SCA has formal employee consultation processes. One of the largest representative groups is the SCA European Works Council which represents about 30,000 SCA employees. Through regular meetings at different levels, SCA maintains an ongoing dialogue with employee representatives.

SCA recognises the right of employees to freely associate and all SCA employees are free to join trades unions. On average, around 70% of employees at SCA sites were covered by collective bargaining agreements in 2009.

Global Framework Agreement

In April 2004, SCA signed a Global Framework Agreement with ICEM (the International Federation of Chemical, Energy, Mine and General Workers’ Unions), the Swedish Paper Workers’ Union (representing all Swedish trade unions) and SCA’s European Works Council. The agreement is based on the Code of Conduct and is an expression of SCA’s willingness to promote cooperation and social responsibility within its worldwide operations and to act as a responsible employer. The areas covered by the agreement are reviewed bi-annually in a joint meeting between the signatories.

The last review conducted in January 2009 concluded that no violations of the agreement had occurred. In March 2009, the signatories met and the agreement was updated through the addition of two new amendments covering SCA's commitment to creating awareness on blood-borne viruses and an undertaking by SCA to consult with its employee organisations on any outsourcing plans. The next meeting of the parties will take place in 2011.

Discrimination

Diversity and non-discrimination in the workplace are cornerstones of the SCA Code of Conduct. SCA has a system in place for reporting and investigating discrimination incidents and applies procedures to avoid similar incidents in the future.

In 2009, a total of seven incidents of discrimination were reported in the SCA Group. Four incidents related to sexual distrimination (see Code of Conduct compliance). The remaining three cases of discrimination involved abuse of power, bullying and assault. Two incidents resulted in termination of employee contract and one incident in a repremand and additional trining on appropriate SCA behaviour. Each of these cases were investigated in accordance with SCA procedures and local legislation.

Compensation

SCA offers employees a market-tested total remuneration package. Levels vary in each local market in which the company operates.

Restructuring and reorganisation

SCA is committed to providing effective support to all employees affected by organisational changes. The first step in the restructuring procedure is early and transparent information to the affected personnel. SCA also notifies the SCA European Works Council and other employee representatives in accordance with SCA policy, national legislation and collective agreements. Employees are informed about the reasons for the changes, expected consequences, and how the changes will be implemented. The average notice period in the SCA Group in connection with organisational changes is five weeks.

Social plans, which address both Group and individual needs, are created. Typically, the social programmes contain employment search assistance combined with financial support and assistance with further education. Agreements, which include severance pay and provisions that address the search for alternate employment, are made with affected employees. Services available include individual career counselling, job searches, workshops and administrative support.

Employee development

At SCA, training and development of employees is assigned high priority. There are a number of centrally and locally run development programmes available for various employee categories throughout the organisation, as well as opportunities for employees to attend specialised courses as the need arises.

The average number of training hours for all employees in 2009 was 10 (9) hours. The total training cost, measured using 2009 expenditure data, was about SEK 246m (153), or about SEK 5,000 per employee. The estimated relation internal/external training is 70/30 and these figures only capture external costs/training hours.

Recruitment

Accordingly, SCA launched a web-based recruitment system across all SCA business groups in 2008 – the Job Portal. During 2009, the introduction was completed. The aim of the portal is to display all available jobs within SCA. Furthermore, those who wish can register their CV and future work preferences in a database that automatically matches them to available jobs as vacancies arise. Today, more than 40 countries have been connected to the system.

Succession planning

Each business group has a succession plan that is revised on an annual basis. Similarly at Group level, a corresponding process encompasses SCA’s top 300 managers and is led by the CEO.

Leadership and talent management

SCA has best-in-class ambitions with respect to leadership. In 2009, the organisation developed a new global leadership platform based on SCA’s core values and its strategies. It is a common framework that describes what is expected from SCA leaders and is designed to meet short and long-term needs for current and future leaders and talents.

A global performance management review system

During 2009, SCA developed and instigated the launch of a new global performance management review system that will serve as a congruent language to define and clarify the conduct that is required at a global level for SCA to achieve its business goals. In 2010, a majority of SCA’s managers will receive training in this common system.

All employees shall have at least two performance reviews per year, which will now be conducted in accordance with a Group-wide model. It will include setting clearly-stated targets and expectations, and providing and receiving feedback so that employees appreciate their contribution to SCA’s business results. About 70% of employees are given regular performance and career development reviews.