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2 SUSTAINABLE DEVELOPMENT<br />

COMMITTED TO AND ON BEHALF OF EMPLOYEES<br />

80<br />

Midwest Regional Joint Board, Worker’s United which manufactures<br />

the Juno Lighting brand.<br />

Social dialogue in Mexico<br />

In Mexico, <strong>Schneider</strong> <strong>Electric</strong> leaders have regular communication<br />

with the employees on topics related to their jobs: this communication<br />

takes place in different ways, including large communication<br />

meetings and small group conversations. There is also continuous<br />

communication with the Union leaders and delegates of three<br />

national Unions which represent unionized employees. <strong>Schneider</strong><br />

<strong>Electric</strong> keeps them informed of internal and external issues<br />

impacting the company’s results, listen to their concerns and look<br />

for alignment with the company strategy and challenges.<br />

<strong>Schneider</strong> <strong>Electric</strong> and the Unions have negotiations regarding<br />

salaries and every two years the contracts are reviewed. In<br />

2011, <strong>Schneider</strong> <strong>Electric</strong> negotiated salary agreements in all the<br />

manufacturing and distribution facilities as well as benefi ts in fi ve<br />

manufacturing plants.<br />

Social dialogue in China<br />

In China, new labour laws, which refer to several important workrelated<br />

issues, came into force in 2008. <strong>Schneider</strong> <strong>Electric</strong> fully<br />

complies with the new Chinese law:<br />

• <strong>Schneider</strong> <strong>Electric</strong> union is established and is functioning in<br />

China, it is engaged with city trade union;<br />

• the Group is under discussion with city trade union on how to<br />

deal with collective contract, which is new in China.<br />

Social dialogue in India<br />

In India, social dialogue is traditionally restricted primarily to blue<br />

collars working in factories. <strong>Schneider</strong> <strong>Electric</strong> has 31 factories<br />

REGISTRATION DOCUMENT 2011 SCHNEIDER ELECTRIC<br />

across India. Only 3 factories have Registered Trade Union, namely<br />

Infrastructure Business at Naini, Global Suply Chain factories<br />

at Chennai and Nasik. In these factories, social dialogue is done<br />

through involving Unions. In all other factories, social dialogue is<br />

organised either through Works Councils/Committees or through<br />

direct dialogue with employees.<br />

<strong>Schneider</strong> <strong>Electric</strong> India has a strong social dialogue culture with<br />

both unionized and non-unionized employees (Work Committees/<br />

Councils). These representatives periodically meet and discuss<br />

the issues on grievances, productivity and growth. Apart from the<br />

regular meetings, management representatives also meet with<br />

Union or Works Council representatives based on the need. The<br />

Unions are affi liated to the external bodies and registered under the<br />

Trade Union Act, 1926.<br />

The majority of <strong>Schneider</strong> <strong>Electric</strong> employees are non-unionized<br />

(28 factories out of 31). These employees are represented<br />

through various employee committees and councils (such as<br />

Welfare Committee, Women’s Committee, Transport Committee,<br />

Canteen Committee, Sports & Recreation Committee, Safety &<br />

Health Committee, Prevention of Sexual Harassment Complaints<br />

Committee, etc.). These committees provide a platform for<br />

employees to represent their concerns, collective grievances<br />

and workplace-related issues to the management. All employee<br />

engagement programs are run through these committees with the<br />

active participation of every employee. To maintain cordial employee<br />

relations in the organisation and create an atmosphere of trust and<br />

motivation, we sign every year a single or bipartite agreement on<br />

salary and benefi ts as per the provisions of local laws for a year.<br />

In 2011, <strong>Schneider</strong> <strong>Electric</strong> Global Supply Chain India successfully<br />

negotiated an agreement through collective bargaining with two<br />

Unions (Nashik and Chennai). Thereby, <strong>Schneider</strong> <strong>Electric</strong> agreed<br />

to fi x all the terms on wages and benefi ts for next four years.

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