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Annual Report 2014 CEO statement Sustainability governance Strategic priorities Performance and progress Snapshots GRI & UNGC

Occupational health and safety

LA6-9

Manufacturing facilities have been the focus of the Group’s occupational health and safety (OHS) work since stepping up efforts five years ago.

The Group total case incident rate (TCIR) is 0.9 (1.0). Almost 80% of factories across the company have achieved below 1.0; considered good OHS performance in the manufacturing industry. Progress over time is more noteworthy the 2014 rate was reduced by a further 10% compared to 2013 and 57% compared to 2010.

On target

Electrolux has a global health and safety management assessment process for all Major Appliance facilities which is also integrated into acquired operations. Three of four Small Appliance factories share the reporting. In 2014 we achieved the strategic goal to reach a TCIR of 0.7 across Major Appliances one year ahead of schedule.

The goal for Major Appliances is to operate 25% of Major Appliance facilities at industry best practice levels (TCIR of less than 0.25) by 2015. The current TCIR for Major Appliances is 0.69.Year-on-year targets have also been set for Major Appliances factories. Facilities with TCIRs greater than 0.7 are expected to demonstrate a 10% improvement on OHS incidents while those under 0.7 but above 0.2 are expected to reduce their rates by 5%. In 2014, 13 of the 16 factories above 0.7, and 6 of the 13 factories below 0.7 managed this. All factories already at TCIR 0.25 are tasked with maintaining their performance.

There was a marked improvement in the OHS performance of plants acquired in Chile and Argentina, with a 31% and 47% decrease in total injury rate respectively. These plants were all acquired in 2011 and have made great efforts to align with Electrolux standards.

In production environments, changing behavior is crucial to reducing OHS risks. Success depends on communicating desired behaviors in a way that resonates with people on the factory floor. Electrolux Major Appliances raised the ambition of its ‘days without an accident’ program from 100 to 150 days in 2014, to engage everybody in OHS objectives.

In order to better understand the types of incidents that occur in factories and prevent them from recurring, Electrolux Major Appliances also introduced First Aid Incident Rate (FAIR) in 2013 to measure incidents that only required first aid. In 2014 data was collected from factories and an average FAIR was calculated. Relative improvement targets will be given to factories for 2015 across Major Appliances.

OHS performance in the ALFA assessment is shown here.

Joint OHS committees

The Workplace Standard and CoC stipulate that local OHS management must live up to Group standards. To ensure this, an OHS Committee, consisting of both management and workers, must be in place at every manufacturing facility. The committees are intended to engage both workers and management in achieving objectives, monitoring performance and advising on OHS programs. This year, these committees covered 98% of the manufacturing units.

Rates of injury

In 2014, the global incident rate (TCIR) decreased by 10% (10%) while the number of workdays lost due to injuries decreased by 24% (48%) compared to 2013. Local definitions on what constitutes a workplace injury have been used to determine the total injury rate.

Incident rate 1)
 
 
 
 
 
 
 
 
 
 
 
 
10
11
12
13
14
 
 
 
 
 
0
 
0.5
 
1
 
1.5
 
2
 
2.5
 
3
 
  10 11 12 13 14
Incident rate 2.1 1.2 1.1 1 0.9

1) Per 200,000 hours worked (TCIR). Key Health and safety data for the Group’s operations. In 2014 data was collected covering 53 production facilities, 30 warehouses.

LA7 Rate of injuries, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region

  2014 2013 2012 2011 2010 2009
Number of work-related injuries  401 434 497 440  800 1,012
Injury rate1) 0,9 1 1,1 1.2  2.1 2.6
Number of workdays lost due to occupational injuries 3088 5677 10,991 6,302 9,671 10,686
Lost day rate1) 7 13 25 18  26 27
Number of work-related fatalities 0 0 0 0 0 0

1) per 200 000h

Education and training

There is strong focus on training in order to prevent injuries and illnesses. OHS training is ongoing and includes induction, Cardiopulmonary resuscitation (CPR), first aid, driver-awareness, drugs and alcohol, and safe operating of machinery such as forklifts.

The 2014 Global Safety Day run by Major Appliances demonstrates commitment and builds awareness about the importance of safety in the workplace and rewarded facilities in each region for outstanding health and safety performance and improvements.

Coverage in trade union agreements

The International Framework Agreement, a formal agreement between Electrolux and key unions underlines the Group’s commitment to maintain the same standards in all the countries where it operates. The agreement encompasses a chapter regarding OHS, stating that all employees are to be provided with a safe and healthy working environment, and, when applicable, safe and healthy residential facilities with meeting local law as a minimum. Electrolux and its suppliers are also responsible for taking appropriate action to prevent workplace accidents or illnesses as defined in the Workplace Standard.