G4-10 Total workforce
In 2014, an average of 8,821 (2013: 9,532) employees worked at Fortum. The biggest number of employees was in Russia, 4,196 (2013: 4,245) employees on average.
The number of Fortum's permanent employees on 31 December 2014 was 8,260 (2013: 9,515), i.e. 96.1% (2013: 96.2%) of the personnel. From these the number of full-time employees was 8,078 (2013: 9,264) and part-time 182 (2013: 251).
The percentage of fixed-term employees was 3.9% (2013: 3.8%). In general, Fortum does not use supervised employees. The joint venture Fortum Värme is included in the 2013 figures.
Fortum uses contractors as needed. Contractors worked mainly in construction and maintenance work. The exact breakdown of hours is not reported. Contractor employees worked at Fortum sites for a total of approximately 1,359,000 (2013: 1,753,000) days during the year. The figure is based on contractors' hourly logs and on estimates based on job costs and average hourly rates. The figure has been calculated on the basis of an 8-hour work day.
|Workforce by employment contract and employment type, broken down by region and gender|
|Employment type (permanently employed)|
G4-11 Coverage of collective bargaining agreements
We respect our employees' freedom of association and collective bargaining, and we do not monitor the degree of unionisation of our employees. We apply local collective bargaining agreements in all countries where we operate, in compliance with the scope of each respective agreement.
Collective agreements cover about 90% of Fortum's employees.
In Latvia, Sweden and Russia, all personnel are within collective bargaining agreements. In Finland, all personnel except top management are within collective bargaining agreements. In Estonia, approximately 25% of the personnel are within the collective agreements, and in Poland, 32% of the personnel are within the national collective bargaining agreements. There are no collective agreements in Lithuania.
Employment contracts are based on local legislation and on the company's human resources policy.
LA1 New employee hires and employee turnover
During the year, 619 (2013: 552) new employees joined Fortum and 668 (2013: 910) employment relationships were terminated. Divestments and outsourcing reduced the number of personnel by a total of 468 (2013: 126). There were 34 (2013: 36) employees on international assignment. Departure turnover in 2014 was 8.1% (2013: 9.7%). The joint venture Fortum Värme is included in the 2013 figures.
|Total number and rate of new employee hires and employee turnover by age group, gender and region|
|New employee hires||Finland||Sweden||Russia||Poland||Other countries|
|New recruits, %2)||1.4||1.6||5.0||1.2||8.5||2.2||2.8||0.7||5.1||2.5|
|Employees leaving||Finland||Sweden||Russia||Poland||Other countries|
|Departure turnover, %2)||3.9||1.1||4.0||4.0||6.8||2.6||8.0||1.5||5.9||2.8|
| Employees leaving, |
|Voluntary departure turnover, % 2)||1.5||0.8||3.4||3.5||4.6||1.6||1.5||0.8||1.7||2.6|
| Average length of service |
for employees leaving
| 1) Data for Estonia is not complete|
2) Percentage is calculated from country's number of employees
|Service years of the permanent employees in 2012‑2014, %|
|1) Includes joint venture AB Fortum Värme samägt med Stockholms Stad|
LA2 Employee benefits by
significant operating countries
In principle, our employee benefits are applicable for all employee groups and working hours groups, for permanent and temporary and for full- or part-time employees. Our most significant operating countries are the Nordic countries, the Baltic countries, Russia and Poland. Employee benefits, like occupational health care, insurance, parental leaves and pensions are typically country-specific and comply with local legislation and the prevailing market situation. Typical fringe benefits may include, for example, car and mobile phone benefits. In addition to fringe benefits, we also provide various other employee benefits. These include, for example, longevity pay and gifts for years of service, discounted electricity prices and recreational and leisure activities. These benefits are generally for all employees.
In Finland we participate in the Tekes EVE - Electric Vehicle Systems Programme. Employees choosing an electric
company car receive a monthly monetary subsidy. The subsidy applies to battery electric vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).
Personnel in Finland have also the possibility to join the insurance fund Enerkemi. The purpose of Enerkemi is to grant benefits in accordance with the Sickness Insurance Act as well as certain additional benefits according to the rules of the Fund. The Fund operates as an employee sick fund. The additional benefits are significantly better than market practices. The benefits include additional compensation for medicine, dental care and various medical devices.
We encourage our employees to exercise and to enjoy culture. In Finland, Sweden and Russia, all Fortum employees can join different personnel clubs offering activities related to sports, nature and the arts. In 2014, we supported employee recreational and leisure activities in our biggest operating countries with EUR 992,000.
- In Finland, the support for clubs, fitness and culture vouchers, and activities related to vacation homes was EUR 315,549.
- In Sweden, the support for clubs was EUR 107,890.
- In Poland, the support for employee fitness was EUR 18,892. The support for other recreational and well-being activities, including support for leisure activities and donations to pensioners, was EUR 162,047.
- In Russia, support for employee recreational activities, leisure camps and other social activities was about EUR 387,247. In Russia, recreational activities of employees' children (7-14 years) are also supported by contributing to the expenses of summer camps.
In 2014, we conducted a survey on employee benefits in our biggest operating countries. In the next phase, the survey will be done also in the smaller operating countries. The aim of these surveys is to ensure the competitiveness of benefits compared to market practices and the compliance with
regulations and decrees in all our operating countries. Based on the survey, we can state that our benefits in our most significant operating countries are in a good level.
Fortum’s short-term incentive scheme, i.e. bonus system, supports the realisation of the Group’s financial performance targets, sustainability targets, values and structural changes. The system ensures that the performance targets of individual employees align with the targets of the division and the Group. All Fortum employees, with the exception of certain personnel groups in Poland and Russia, are covered by the system. In Poland and Russia there are other incentive schemes. In 2014, nearly EUR 13 million from year 2013, i.e. about 85% of the target level, was paid to individuals belonging to the Fortum's short-term incentive scheme.
The purpose of Fortum’s long-term incentive system, i.e.
share bonus system, is to support the achievement of the Group’s long-term targets by committing key individuals. The Board of Directors approves the Fortum management members and key individuals entitled to participate in the share bonus system. The Board of Directors can also exclude individual participants from the system. Participation in the system precludes the individual from being a member in the Fortum Personnel Fund.
EU18 Contractor and subcontractor employees that have undergone relevant health and safety training
The safety of employees of subcontractors and contractors is as important to Fortum as the safety of own employees. Contractor safety targets are set based on a continuous improvement principle. Safety incidents and accidents are reported, accidents are investigated, and safety performance indicators are monitored on a monthly basis. Contractor and subcontractor safety is considered in all work phases – from the selection of subcontractors for the actual work to the post-performance evaluation. Requirements are set forth in the corporate-level safety instructions and the procurement organisation's instructions, and they are further specified in local instructions.
One of the key elements in the instructions is the requirement to provide proper induction training and on-site orientation to
all workers, including contractors, before starting the work. Effective induction training ensures a good understanding of site-specific risks, procedures and safety requirements. Induction training is valid only for a limited period, typically, not more than three years.
Induction training includes, at minimum, site-specific safety requirements, rules, instructions, work permit procedures, the main risks of the site and how to prepare for them, the required personnel protective equipment, near-miss and incident reporting, emergency response, inspections, housekeeping, fire protection, first-aid systems, evacuation plans, and the contact data for the individuals responsible for these tasks.
Induction training including safety training is provided for all contractors and subcontractors who work at Fortum's sites and facilities. Local organisations are responsible for implementing the training. Verification that the safety
requirements presented in the induction training are understood is ensured by using interpreters, when needed, and by testing.