verallia: a responsible employer

A SHARED COMMITMENT

Verallia places great importance on issues that affect its personnel, such as workplace health and safety, employee motivation, diversity, good employee relations, labor relations, and involvement in local communities.

An ongoing commitment to ensure employee HEAlTH and SAfETy

Recruitment and relations with schools and universities to further contribute

to DIvERSITy and excellence

A focus on personal growth and DEvElOpMENT in career management

Access to skills and management TRAININg programs 

Employee ENgAgEMENT with the company’s business and social objectives

The key principles of Verallia’s human resources policy are as follows:

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a zero-risk culture Verallia’s health and safety policy hinges on the development of standards to ensure that our sites are compliant with requirements. We also deploy programs aimed at changing behavior and safety management practices among our employees, as well as temporary staff and contractors working at our plants.

Two key performance indicators (KPIs) are tracked at company level on a monthly basis: the lost-time accident frequency rate (TF1) and the non-lost-time accident frequency rate (TF2) for Verallia personnel and contractors/ temporary staff combined.

Verallia applies specific health and safety standards based on an analysis of the root causes of the most frequent accidents and their seriousness.

This process has resulted in the development of standards for working at heights; lock-out/tag-out of electrical

equipment; contractor management; work permits for potentially hazardous activities such as welding, grinding and excavation; operation of forklifts; and machine safety.

1. focusing on the basicsVerallia has defined 4 Cardinal Rules, which were rolled out across the company in 2009 to make employees more aware of the basic principles of health and safety: do not bypass, neutralize or damage any safety devices; always wear suitable personal protective equipment (PPE); always follow lock-out procedures systematically; and use proper equipment and tools at all times. The implementation of these “4 Cardinal Rules for saving lives” is regularly tracked in all of the countries in which we operate.

2. Collaborative tools Verallia also has a number of programs in place aimed at delivering progressive improvement in safety behavior across the organization. The primary aim of the Safety Management Audit Tool (SMAT) program, for example, now in place at all our sites around the world, is to enable managers and operators to discuss safety in a real work situation, in order to identify positive behavior as well as areas for improvement in relation to specific tasks.

a responsible employerSAfETy

Cultural toolsParticipatory toolsManagement tools

Risk assessment for each job and task

Comprehensive and coherent program

Cardinalrules

Safetystandards

Internalplant-levelstandards

Clear policy andresponsibilities

SMAT, monthly meetings, 5S, daily safety minutes

TF5 BBS,...

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(Number of lost-time accidents + fatal accidents) x 1,000,000

Number of hours workedTF1Number of reported accidents x 1,000,000

Number of hours workedTF2Number of recorded unsafe situations x 1,000,000

Number of hours workedTF5

Safety issues reported back by managers or operators from the different Verallia entities as a result of activities under the SMAT and TF5 (day-to-day risk management) programs are followed up with associated action plans at sites, where necessary.

Several sites have also embarked on a behavior-based safety (BBS) initiative which aims to foster a safety culture among all employees, particularly operators. Some plants (for example Wirges in Germany, as well as Dego and Carcare in Italy) have provided employee training to further raise

awareness of safety issues. The Porto Ferreira site in Brazil has launched the GOS program (Portuguese for Safety Observation Template), a series of safety discussions led by members of the plant’s safety committee (operators and employee representatives) to ensure the correct implementation of safety standards and rules.

TF1 - Lost-time accident frequency rateTF1 measures the number of accidents resulting in more than 24 hours of time off work. Accidents that occur when traveling to and from work, or to and from the location where employees normally eat their meals during the work day are not included.

TF2 - Non-lost-time accident frequency rateTF2 measures all accidents requiring medical services (fatal accidents + lost-time accidents + non-lost-time accidents).

all aboutTF1TF2

Lock-out/Tag-out is used to ensure that electrical, mechanical

or hydraulic equipment is de-energized before work

is carried out on it, to prevent the equipment from being

inadvertently re-started or re-energized by

another person.

LOCK-OUT / TAG-OUT

all about

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We have identified two key areas of focus related to health aspects of our industrial processes.

two objectives for optimal working conditions

1. Workstation ergonomics (movements and postures)Health risks can relate to lifting and handling, movements and postures, or repetitive strain on the upper limbs. Specialists in ergonomy support the risk assessment process and help develop solutions such as warm-up exercises, awareness training and the installation of new lifting/handling equipment. The Lagnieu plant in France, for example, has introduced warm-up sessions for staff responsible for adjusting the forming equipment at the start of a new production

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run as part of its workplace ergonomics initiative. The ten-minute warm-up sessions, led by two in-house instructors, take place before the job change process to reduce the risk of injury and back strain when handling moulds.

Verallia has also produced a best practice guide for handling moulds, and the target for 2012 is to ensure that one site in each country conducts a mould handling analysis and implements the good practices outlined in the guide. The Bad Wurzach plant in Germany has already completed the analysis, and a number of workstation modifications have been made to implement the recommended practices.

2. Exposure to heat and noiseVerallia has adopted the Noise Standard (NOS) developed by Saint-Gobain in 2004 to assess personnel exposure to noise generated on site. A noise mapping exercise has been conducted at each plant, and a number of techniques have been deployed to reduce employees’ exposure to noise pollution. At the Pescia plant in Italy, for

example, a soundproofed cabin has been installed in a central location in the forming area. The new cabin allows the operator to conduct quality checks on three separate IS machines in cooler and quieter conditions.

A number of initiatives has also been introduced to reduce our employees’ exposure to heat. In Lonigo, Italy, for example, an air cooling system has been installed to boost the air renewal rate and reduce the temperature for personnel working in the packing area.

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people: our key resourceHuman resources are key to Verallia’s corporate strategy. Our HR policy, built on experience, wide-ranging expertise, and a commitment to the Principles of Conduct and Action, combines the virtues of strength and proximity by:

• Devolving management to country and subsidiary level

• Leveraging synergies at corporate level, with a particular focus on career management, diversity, mobility, and the implementation of our Principles of Conduct and Action

1. Recruitment and university relations The recruitment of new employees is vital to the ongoing development of the company. We select candidates carefully to ensure that they offer the right combination of skills, teamworking ability and development potential. New recruits’ attitude and behavior must be in line with the Principles of Conduct and Action, and openness to functional or geographical mobility may also be taken into account during the recruitment process.

As an employer, we are committed to diversity and equal opportunity, and our recruitment process is designed to treat all applicants fairly, regardless of gender, age, ethnicity and disability.

We are also committed to increasing the number of women we employ, particularly in technical jobs, to achieve a better balance between male and female employees.

Our recruitment figures for 2011 show that we are making progress: 32% of the

200 managers who joined Verallia last year were women (the proportion in France was 47%).

Verallia has an policy of active engagement with schools and universities. Our HR teams take part in recruitment

verallia employeur responsable

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events hosted by educational institutions to interview and select students for internships and entry-level positions. Examples include: the Forum Trium recruitment fair, held by a group of prestigious French engineering schools; Foro de empleo in Burgos, Spain and a number of career fairs in the United States.

To boost Verallia’s profile as an attractive employer among universities specializing in our key disciplines (engineering, packaging, sales and marketing), we also send out speakers to talk about their career experiences to students in specific courses. The range of subjects and speakers is impressive and includes a presentation on marketing and design office activities at the French packaging engineering school ESIEC; an “industry jobs” seminar at the Ecole Nationale des Ponts et Chaussées (ENPC) engineering school near Paris, France, attended by a Verallia plant manager; and the design of teaching modules for Master’s degrees at the Polytechnic University of Turin in Italy. Plants in various countries regularly

host visits to demonstrate our industrial expertise to students, and to encourage them to join Verallia upon completion of their studies. Students from the University of Reggio Emilia in Italy recently visited our sites in Gazzo Veronese and Villa Poma, for example, while a group from ENPC toured the Oiry plant in France.

RecRuitment

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2. career management and training Our employees always have been, and always will be, our greatest asset for growth. Their specialized expertise, their adaptability and capacity for innovation, and their motivation and engagement will enable Verallia to continue to grow and to meet new challenges and seize opportunities.

Verallia works hard to foster a culture of real internal mobility and development, supported by a range of initiatives designed to help our employees fulfill their potential.

At Verallia, we consider knowledge sharing to be very important. Therefore, considerable effort is devoted to training. Recent years have seen a continuous increase in the percentage of our workforce that has received training (approximately 83% in 2011) and the number of hours of training (more than 49 hours per employee in 2011).

In 2011, the amount invested in training by Verallia was equivalent to 3.4% of the total payroll.

Our training programs are structured around two principal areas:• Skills training to develop the knowledge

and expertise of employees. Technical training, for example, represented 54% of the total volume of training in 2011 (compared with 42% in 2010). The majority of training is provided at our in-house training centers (such as the international training center in Chalon-sur-Saône, France, and the Technical Training Center in Marion, Indiana, United States).

• Management training to develop team leadership and project management skills of current and future managers

In addition to conventional classroom-based training, we also use tutoring programs to transfer knowledge and expertise in work situations. Tutors come from the same entities as tutees, receive special training in tutoring techniques, and conduct their tutoring activities according to a structured step-by-step program that ends with an assessment of the skills acquired by the individual. Tutoring programs are mainly used with technical staff at our plants, for example to develop skills in both forming and packing activities (in France), or to allow operators to be seconded for a three-week training period

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to acquire new skills (in Spain). We also offer training programs at our

plants for recently graduated engineers (such as the Pépinière program in France and the Management Leadership Development Program in the US), whereby trainees spend time in a variety of roles, interspersed with specialist training sessions, over a period of 15-30 months. Engineers are assigned supervisory positions in operational teams upon completion of the training program.

Mentoring programs are part of the management development process in Germany and the United States. Participating managers meet with their assigned mentor— with whom they do not have a direct reporting relationship—on several occasions during a period of 12-18 months. The meetings give mentees the opportunity to discuss issues they are facing at work, and to receive advice and support from the mentor, often in the form of customized action plans.

Verallia employees also have access to a range of e-learning tools. In 2011, a series of six technical e-learning modules about the glassmaking process were developed by

Verallia’s training department. The modules have been translated into several languages and are available to all personnel.

Finally, in each of its countries of operation, Verallia offers single-year or multi-year study-and-work apprenticeships for young people (who represent approximately 3% of our total workforce) in the fields of production, maintenance, finance, marketing and human resources. The apprenticeships combine high-quality practical experience with the theoretical training provided at school, helping to make the participants more employable. Some of the apprentices are hired as full-time Verallia employees upon completion of their course.

Our human resources teams and managers have a range of tools and processes at their disposal to support employees’ professional development. Annual appraisal interviews, for example, provide employees with an opportunity to talk to their direct supervisor about areas for improvement and training needs. Verallia employees also have access to an intranet site that provides information about internal job vacancies, allowing them to

be proactive in managing their careers. Annual “People Reviews” are held at the

team level in all of our countries of operation, helping to identify employees with the desire and potential to benefit from international experience. International assignments, which last an average of three years, deliver significant benefits for both the employee and the company: They provide a demanding yet undeniably enriching experience for the employee, both personally and professionally, while promoting the development of a shared culture, creating synergies, and fostering exchanges of best practices, all of which strengthen Verallia as a company.In 2011, 45 managers benefited from assignments abroad.

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3. employee engagement

employee relations We recognize that labor union cultures and labor relations environments vary from country to country, and we adapt our approach accordingly, with the same strong commitment to ensuring constructive and balanced dialog with employees in all of our countries of operation.

In the United States, for example, for the past four years Verallia North America’s Labor Relations Director and the head of the GMP labor union have hosted a joint event for students at Purdue University to promote good labor relations based on mutual trust, communication and respect for employees.

In France, where there is a long tradition of social dialogue, an innovative agreement regarding union recognition was reached in 2011 to enable employee representatives to reconcile their union commitments with their professional development. Key provisions of the agreement include support for union officials at the beginning and end of their

term, training in the rights and responsibilities of employee representatives and access to high-level training in communication and economics at a leading French graduate school for labor union stakeholders.

Several other agreements have also been signed in France in recent years, reflecting a shared commitment to progress in areas such as gender equality, jobs and skills management, planning and profit sharing.

Finally, labor relations at the international level are becoming more structured as European labor organizations work together more closely.

share options and profit-sharing Verallia employees can access Saint-Gobain’s savings plan (where local legislation permits). Launched in France in 1988, the share option plan has been gradually extended to include nine countries, including some in South America. It enables employees to build savings over a number of years, based mainly upon Saint-Gobain share options granted at an attractive price.

In some countries, including France,

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employee salaries can also be enhanced by incentive and profit-sharing plans.

increasing employee engagement through satisfaction surveys and family eventsEmployee satisfaction surveys were conducted in Spain, Portugal, South America and Russia in 2011 to measure employee attitudes and expectations. Survey questionnaires are completed anonymously by employees and cover areas such as work atmosphere, management, communications, pay, career management and training. The survey results have been reported back to all personnel, and action plans have been implemented to drive improvements in certain areas.

Verallia is also committed to involving employees’ families in special events so our personnel can share and take pride in their everyday work environment. Open houses held when a furnace is rebuilt, or to mark the completion of site upgrade projects (such as that which took place recently at the Azuqueca plant in Spain), provide families with an ideal opportunity for a site visit.

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Demonstrating its commitment to social and environmental responsibility and reinforcing its competitive advantage in these areas, Verallia was the first glass packaging company to introduce a program of audits carried out by an independent body.

In 2011, audits were conducted at all of our sites by Intertek, a firm that specializes in the assessment of companies' performance in the fields of compliance, quality, safety, environment and social responsibility. With a network of more than 1,000 laboratories in 100 countries, and more than 30,000 employees, Intertek is a leading provider of social and environmental performance assessment and certification services.

The audit results illustrate our employees’ commitment to sustainable development: one-third of the 47 sites audited scored 98% or more, and two-thirds scored more than 92%.

The audits highlighted our excellent performance in employee communications, and our efforts to stop discrimination

audits: as transparent as glass

and to reduce our environmental impact through our programs to reduce energy consumption, CO2 and other emissions, and our structured approach to monitoring safety performance.

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social audits

Working conditionsWages and working hours

Health and safetymanagement systems

environment

Child labor Working hours Work area Documentation Regulatory compliance

Forced labor

Pay and benefits Emergency preparedness

Work-related accidents

Employee engagement

and profit sharing

Effectiveness of sites’ environmental

management systems

Freedom of association

and collective bargaining–

Equipment safety Audits and monitoring

of corrective actions–

Freedom from

discrimination– Risks Integrity –

Disciplinary practices –Chemicals and hazardous

substances– –

Work contracts – Cafeterias and break areas – –

The audits carried out at Verallia’s sites by Intertek featured more than 400 questions relating to five main themes: