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96

LISI 2016 FINANCIAL REPORT

In addition, French employees have the right to invest in the company

through an employee savings plan and, in this way, become a LISI

shareholder. An attractive matching contribution from the employer

goes together with this Group Savings Plan. 17% of French employees

are LISI shareholders.

In France, the LISI Group employees receive a supplementary defined

contribution pension scheme (the so-called “Article 83”).

The employer pays a monthly fee on a mutual fund open to employees

to enable them to build up retirement savings. Employees may make

voluntary payments or allocate days off to increase the amount of

these savings. Upon retirement, the resulting savings are converted

into an annuity. Employees then receive additional income throughout

their retirement.

Making talented people involved and loyal is a major challenge for

the LISI Group. As such, executives or holders of key positions in

the organization receive a share award program conditional on the

medium-term performance of the Company. This method of variable

remuneration enables them to partner closely with the Company’s

performance results over several years.

1.2

I

ORGANIZATION OF WORKING TIME

1.2.1

I

Organization of working time

The work of production staff, in France and abroad, is most frequently

organized in two or three daily shifts. Depending on the site, substitution

teams are likely to be implemented on weekend days. Furthermore,

nightshift working was carried out in certain sectors in order to respond

to specific workload requirements.

Overtime accounted for more than 798,667 hours in 2016, or 4.5% of

hours worked.

1.2.2

I

Quality of life at work and absenteeism

The LISI Group considers that the health and safety of persons is one

of its major responsibilities.

Hence, quality of life at work is one of them. For this reason, each year,

LISI AUTOMOTIVE carries out

a survey on the quality of life at work.

The results of the survey are analyzed and enable working groups to

be organized on the topics that emerge and to establish improvement

action plans by site.

2016 was a year also marked by

the fitting out of new working areas

:

relocation or enlargement of our sites. These investments made it

possible to work on improving working conditions for the staff.

In response to staff’s expectations

, the Heidelberg site in Germany

held information workshops on blood pressure and days to raise

awareness of and for the prevention of back problems at work. The

Mellrichstadt site in Germany started a new initiative on massages at

the workstation. The Bar sur Aube site in France launched a fitness

program in an exercise room to work on the right gestures and

postures for Forging occupations. On the Dasle site in France, a doctor

of physiotherapy provides support for volunteer employees who have

back and tendinitis problems.

In France, the employees of the LISI Group benefit from the services of

the Réhalto firm

,

in order to

prevent any worsening

of psychosocial

risks

, regardless of their origin, work-related or personal.

This listening and support platform, composed of psychologists

available 24/7, allows any employee of the Group to obtain the

assistance of a qualified professional to overcome their problems and

find a solution to their difficulties, be they of a personal, professional,

family or addiction-related nature.

A simple phone call, on a totally confidential basis, puts the employee

in touch with a psychosocial health worker in his/ her region, who is

therefore able to provide

a

diagnosis. The employee can benefit from

up to 12 hours of paid consultations.

In 2016, the absenteeism rate was 3.8%: 3.7% for LISI AEROSPACE,

3.8% for LISI MEDICAL and 3.9% for LISI AUTOMOTIVE.

Various measures are taken at the divisions to reduce the number of

hours lost: in most units, incentive agreements include an absenteeism

indicator:

on the majority of sites, interviews are conducted on the employee’s

return to identify the levers of progress that will help prevent further

absences (e.g.: work on ergonomics, gestures and posture training,

adaptation of team schedules);

communication actions are put in place to educate staff on the

impact of unanticipated absences on production cycles.

MEDICAL

CHECK-UPS MAY ALSO BE CONDUCTED

WHERE REQUIRED. 1.3

I

LABOR

RELATIONS

1.3.1

I

The organization of social dialogue, particularly the

staff information, consultation and negotiation procedures

In addition to strict compliance with applicable law, the Group pays

attention to social dialogue with the employees’ representatives,

altogether during meetings of the works committee (or the single

employees’ delegation) on each of the sites which has such a body,

the Central Works Committee (Blanc Aéro Industries and Former), the

European Committee and the Group Committee of LISI.

Corporate social responsibility

6