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34 KORSNÄS SUSTAINABILITY REPORT
Korsnäs works systematically with issues
regarding workplace health and safety.
The work is based on the belief that
health and safety go hand in hand with
effi ciency and profi tability.
Preventive measures
The aim is to create safe workplaces, with
a focus on preventive measures to reduce
the number of work-related accidents,
maintain a low absenteeism rate and re-
duce the number of people with long-term
illnesses. Overarching work environment
issues are handled within cooperation
committees consisting of both employer
and employee representatives, see page 35.
Locally, work environment groups within
each operation are in charge of safety
matters. Health matters are handled in
close collaboration with the local occupa-
tional health service.
Part of the change process
To illustrate the importance of safety and
to develop a safety culture within the
company, these issues are also included in
Korsnäs’ long-term change process within
the framework of the KOM programme,
see pages 36-37. For example, in 2011 a
project was conducted to improve traffi c
safety at Korsnäs Rockhammar. Improve-
ment teams, consisting of mill employees,
identifi ed locations at high risk for acci-
dents, which lead to practical measures
being taken. Korsnäs Gävle carried out an
improvement project to eliminate lifting in-
juries within part of the production chain,
resulting in new working methods, instruc-
tions and training for those involved.
Results 2011
The statistics for 2011 indicate that the work
on health and the working environment
Social responsibility
Overall, the results of the work on health and the working environment were positive in 2011. Absence due to illness was low and the number of work-related injuries resulting in sick leave declined.
Goal for employee dialogues 2011: Employee dialogues will be carried out with at least 98 percent of the company’s employees.
Outcome 2011: 92 percent.
Goal for leadership training 2011: At least 98 percent of Korsnäs’ depart-ment heads will have begun leadership training.
Outcome 2011: 99 percent.
HEALTH AND SAFETY HAVE TOP PRIORITY
A DRUG-FREE WORKPLACE
Company policy insists that Korsnäs be an alcohol and drug-free workplace. This policy helps create a good, safe working environment The focus is on preventive work, with information cam-paigns aimed at all employees. Alcohol and drug testing is carried out on new staff, on suspicion of infl uence and as part of rehabilitation after repeated short-term sick leave. Random alcohol and drug testing is performed in all areas of operations, among employees, contractors and consultants. Guidelines for measures to be undertaken in con-nection with abuse problems are set out in Korsnäs’ Action Plan for Alcohol and Drug Abuse.
Korsnäs dedicates substantial resources to exercise and other wellness programmes. The aim is to improve employee health at the same time that activities create employee satisfaction and a sense of community in the workplaces.
35KORSNÄS SUSTAINABILITY REPORT
yields good results. Absence due to illness
is low at all three mills and the trend has
been downward for a long time. The num-
ber of rehabilitation initiatives is also low.
The number of work-related injuries with
sick leave in 2011 was lower than in 2010,
while the number of work-related injuries
not resulting in absence due to illness in-
creased. Employee reporting of incidents
remains high. The company believes this
is positive because more active reporting
makes it easier to prevent accidents.
Social responsibility
0
2
4
6
8
2006 2007 2008 2009 2010 2011
Total Men Women
%Absence due to illness
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010 2011
Reporting of incidents Work-related injuries resulting in absence due to illness
Work-related injuries not resulting in absence due to illness
Work-related injuries and incidents
0
5
10
15
20
0
500
1000
1500
2000
2006 2007 2008 2009 2010 2011
Average of whom, women %
Number %Number of employees
REHABILITATION POLICY
In coordination with the trade unions, Korsnäs has adopted a policy and plan of action for rehabilitation. The point of departure for this is the view that work and social interaction in the workplace represent a signifi cant part of life. The objective is to bring employees whose work capacity has been impaired back to normal work.
Cooperation committee
General health and safety issues are ad-dressed by cooperation committees that act as safety committees. At the level beneath the cooperation committee, lo-cal committees or working committees deal with issues involving the working environment. Matters of policy regarding the working environment and safety are decided on by the Group-wide council. The coordination bodies within Korsnäs consist of representatives from both the employer’s and the employees’ sides. The council model is not currently applied in safety work in Korsnäs’ Latvian subsidiary. There,
management represents the employees at meetings addressing safety issues.
Cooperation agreements
The industry has an overall, central coop-eration agreement describing matters such as work with workplace health and safety and occupational health services. Korsnäs has an overall cooperation agreement for the Korsnäs Group describing the levels of the cooperation structure. Policies regard-ing the working environment, rehabilitation and alcohol and drug issues have also been developed through joint action. Work environment issues are of key signifi -
cance, where each manager is responsible for ensuring workplace safety. The trade unions appoint safety offi cers and a chief safety offi cer. Each new manager and safety offi cer takes part in basic working environment training, which is arranged regularly based on the requirements imposed by operations. In Korsnäs’ Latvian subsidiary, working environment and safety issues are also included in the central agreements with the trade unions, although these are worded differently than the corresponding agreements in the Swedish operations.
At Korsnäs Rockhammar, a KOM project has led to a new pedestrian path, as well as speed and warning signs set up to improve road safety, concludes automation electrician Magnus Blomberg, a member of the improve-ment team.
36 KORSNÄS SUSTAINABILITY REPORT
Social responsibility
The purpose of KOM is to ensure
continued competitiveness in a future in
which the market is changing at an
ever-increasing pace. By using the KOM
method, the company and employees are
better equipped to deal with problem-
solving and manage the operation in
relation to established objectives. The
method will lead to a common platform
for the change process and strengthen the
corporate culture by always working with
continuous improvements.
New approaches
KOM is a long term programme that is still
in the introductory phase. The aim is for the
company to improve at working with
management by objectives and quickly
address deviations. To date, 12 KOM
projects have been started, carried out by
improvement teams with four to seven
participants. The KOM teams are selected
to reduce or eliminate identifi ed losses, such
as handling damage with forklifts, and to
reduce machinery-related time losses. Some
of the teams have worked on improving
workplace health and safety and increased
personal safety. The various losses are
identifi ed through analyses. These cross-
functional teams are the key to safeguard-
ing employee expertise, resulting in new
solutions to the projects.
The reports from the fi rst projects have
now been submitted, describing concrete
measures, improved procedures and a
strong commitment to development. They
have also created conditions for immedi-
ate or future savings.
Several new change projects are
planned for 2012 and the next few years,
which will affect even more aspects of the
operation.
Leadership for change
Skills and commitment from all employees
are essential for the KOM programme to
have an impact. Consequently initiatives
to improve leadership and employee
commitment are an important part of the
process. In 2011, a new leadership
programme was started for all leaders
within the company, from the corporate
management team to the fi rst line
managers at all departments and through-
out the operation. The focus of this
initiative is change leadership. All
managers will complete the training
programme.
Improved dialogue
Improving the dialogue between leaders and
other employees, as well as between
different parts of the operation, is a
fundamental component of the new
leadership policy that Korsnäs introduced.
The aim is to create good everyday
communication, including feedback that
will lead to improvement. Special efforts are
also needed to develop forums and new
tools for employee development, which
previous employee surveys showed were in
demand. As an example, Korsnäs has
worked with the trade unions to design an
improved model for the employee dialogue.
The goal is to conduct employee
dialogues twice a year for all employees,
with a basic dialogue to discuss objectives
and a follow-up dialogue.
Improvement Projects in the KOM programme place great emphasis on root cause analysis; in this case exploring the root cause of valve problems.
RENEWAL, LEADERSHIP AND EMPLOYEE COMMITMENT
Korsnäs’ change management program, KOM, Korsnäs Operational Management – is gradually being introduced throughout the company. Development of employee commitment and leadership is an important element in this long-term change process and is a requirement for creating lasting change.
37KORSNÄS SUSTAINABILITY REPORT
Cooperation with trade unions
Korsnäs’ ambition is to maintain close rela-tions with the trade unions and the com-pany considers union work to be important and valuable. Cooperation with the unions is a prerequisite for the process of change in progress throughout the company. The company’s employees are repre-sented on the Board of Korsnäs by ordinary members or their deputies. The company and the unions cooperate both centrally and locally on efforts with major invest-ments and other important projects. There is a cooperation council at each of the mills
and these hold regular meetings with mill management.
Human rights – diversity and equality
From Korsnäs’ CR Policy: “Korsnäs works to promote diversity and equality among its workforce and in its recruitment processes. The company employs, trains, promotes and remunerates all employees in accordance with job-related factors, such as individual skill, quality of work, attitude, competence and potential, as well as the company’s needs. Korsnäs’ stance is to promote a sound and collegiate working environment
for all employees. This disregards ethnic or national origin, skin colour, religion, gender, sexual orientation, citizenship, age, marital status, functional disability or any other cat-egorisation protected by current legislation.” In 2011, Korsnäs received one notice of discrimination in connection with recruit-ment. The case was resolved in arbitration. Child labour does not occur in Korsnäs’ operations, where the minimum employment age is 18. Korsnäs also assesses its larger suppliers regarding a number of factors, in-cluding aspects of the working environment.
EMPLOYEE SURVEY
Korsnäs has been conducting regular employee surveys for about ten years. The purpose is to gain a view of employees’ work situation while developing measures of the company’s capacity to generate added value for its customers. The surveys are conducted by the opinion research company TNS-Sifo, which uses the survey responses to derive a Value-Creation Capital (VCC) index. Korsnäs’ 2010 sustainability report included com-ments about the outcome of the most recent survey. The next employee survey will be carried out 2013.
KOM FOR INCREASED COMPETITIVENESS
KOM (Korsnäs Operational Manage-ment) is a long-term programme of change to enhance effi ciency and competitiveness by avoiding losses in the company’s overall processes. In this context, “losses” refers to losses in terms of both materials and time and that do not contribute to the value generated for customers. A central component of the KOM programme involves developing the company’s approach to problem solving and continuous improvement. The KOM programme builds on World Class Manufacturing (WCM), which is well-established in many industries.
The employee profi le affi rms that, as Korsnäs employees, we shall: • work for the best of the company • help generate value for customers • work in a goal-oriented manner and
focus on improvement • have respect for other employees, e.g.
in promoting a safe working environ-ment, being open to dialogue and seeing diversity as a strength.
The four criteria of the management pro-fi le state that a good leader should: • provide a good role model • lead towards clear objectives • develop operations, him/herself,
employees and the team • take decisions
EMPLOYEE AND MANAGEMENT PROFILES
Korsnäs’ employee and management profi les are of great importance in the change process that has been initiated through the KOM programme.
Improving the dialogue between employees and managers at all levels of the company is one component of the improvement process at Korsnäs.
Social responsibility
38 KORSNÄS SUSTAINABILITY REPORT
Social responsibility
CONTACTS WITH SCHOOLS AND UNIVERSITIES
In a world with intensifying competition,
new working methods and faster technol-
ogy development, employee skills are
becoming a crucial competitive factor.
Like many other industries, Korsnäs faces
a generational shift, with many people
retiring over the next 15 years. In this
situation, the company’s long-term talent
strategy – which encompasses recruit-
ment, skills development and skills
transfer – will be particularly important.
Attraction
To meet these challenges, the strategy
includes efforts to attract and recruit
young, well-educated employees. The
starting position is relatively favourable
because Korsnäs has been building close
contacts with schools and colleges over a
long period of time. For example, each
year the different operations offer primary
school students a large number of
internships. Korsnäs also arranges an
extensive study visit programme for
upper-secondary school students, teachers
and career counsellors. The mills and
forestry operations also host workplace
interns from upper-secondary school
vocational programmes.
Contacts with colleges and universities
are important and take place through
efforts such as job fairs, study visits and
degree projects. Korsnäs has representa-
tives on various education councils and
committees at all levels of education.
Professional trainees
Professional trainee is a new form of
employment, in which adolescents are
given a six-month introduction to the
company’s operations and processes. They
are then hired as operators or maintenance
technicians. The improved comprehensive
approach creates conditions for closer
cooperation between operations and
maintenance. The initiative is also part of
the practical knowledge transfer necessary
for the impending generational shift. The
professional trainee programme is a
complement to Korsnäs’ trainee pro-
gramme for older students.
To ensure the company’s competitiveness, Korsnäs works with a long-term talent strategy. This strategy includes close contacts with schools, colleges and universities.
The summer camp held in Örebro aims to awaken an interest in science and engineering among girls. The camp is a joint venture by the Tullängsskolan School, Komtec, Risbergska School and Örebro University. Korsnäs sponsors the event.
The company’s professional trainee initiative has been quite successful. The new employees receive a broad introduction before proceeding to employment as operators or maintenance technicians.
INDUSTRY-WIDE PROGRAMMES
Korsnäs is involved in industry-wide programmes to inform about forest management. The Forest at School programme is a national joint action project involving schools and Sweden’s forestry stake-holders. The aim is to teach students and teachers about forests and forestry. Through outdoor education, the Forest at School programme seeks to unite theory and practice. Journey into the Future is an upper secondary school initiative that the Forest Industries Federation carries out in tour format to disseminate information and stimulate interest in young people to work in the forestry industry. Since its inception in 1999, Journey into the Future has met more than 120,000 students at almost 300 schools.
PRAO = internships for younger students. APPU = workplace internships for older students.
39KORSNÄS SUSTAINABILITY REPORT
Social responsibility
COMMUNITY INVOLVEMENT — LOCALLY AND GLOBALLY
Korsnäs’ operations in Gävle, Frövi and
Rockhammar provide support in various
ways to local clubs and associations,
primarily within sports and culture.
There is a strong commitment to educa-
tion, especially in activities that stimulate
an interest in technology among young
people.
Korsnäs is also involved in other
relevant social activities at both a central
and local level. For example, the company
supports a science and engineering camp
for girls in Örebro. In Gävle, Korsnäs is
one of the principal sponsors of Rapa-
tac, an initiative to help children accept
greater responsibility for their schooling.
Playing for Change is a locally sup-
ported programme with a global perspec-
tive. The Playing for Change Foundation,
which was founded by Kinnevik, supports
social entrepreneurs with sustainable
ideas for how to improve life for children
and young people. The basic idea is that
play prepares children for life and that
children all over the world have the right
to free play. Among many other things,
in 2011, Playing for Change supported
the “Healing Game” initiative, which has
developed play pedagogy to help trauma-
tised refugee children.
Korsnäs is one of the main partners of
Playing for Change and has, during the
year, facilitated facilitated support for
social entrepreneurs in Sweden, Ghana
and Russia. Korsnäs employees have also
served as advisers to the social entrepre-
neurs in Sweden and participated on the
jury that selects the entrepreneurs who
will receive support.
Korsnäs’ ambition is to act both locally and globally as a good corporate citizen. This community involvement includes support for positive initiatives and activities.
The Rapatac project offers children and young people leisure activities and helps them to accept greater responsibility for their schooling and future. As one of Rapatac’s main partners, Korsnäs supports the establishment of the activities at the Rapatac Nordost activity centre in Gävle.
The Maths Centre association offers assistance in mathematics to secondary and upper-secondary school students in the form of open maths workshops. About 200 volunteers run 33 maths workshops per week. The founder of the Maths Centre is one of the social entrepre-neurs who receive support from Playing for Change.
“A RICHER LIFE”
Korsnäs contributes to foundations and funds to promote stimulating leisure time for the company’s employ-ees. For example, Korsnäs employees and pensioners have access to about one hundred holiday homes in Sweden and abroad. Trips to sports events, trade fairs, theatre shows and other cultural events are arranged for em-ployees and their families.
Playing for Change gives enthusiasts who work in areas with vulnerable individuals the chance to develop their ideas and create meaningful and sustainable companies.
CHRISTER SIMRÉN, CEO KORSNÄS AB