Sustainability r e p o r t - Sabesp

Tobacco-Free Environment Gold SealWe were the first state-owned company and the second company in general to receiveto receive this seal. To help those interested quit smoking, we paid, through theEmployee Recovery and Care Program (PARE), the result of which are very positive, forthe treatment of 559 employees, of whom 177 actually quit smoking.Transparent communicationhelped increasing thenumber of shareholdersInvestor RelationsDespite the global crisis that engulfed the markets in 2008 and 2009, wecontinued to attract market analysts (sell side) and, as a result, investors,resulting in a number of coverages that jumped from 11 in 2008 to 17 in 2009.In order to keep our shareholders and investors always informed on ouroperations, strategies, and results, we adopted a consistent, clear and reliablecommunication policy with our shareholders, market analysts, financialinstitutions, rating agencies, and regulators. In addition to the public meeting andthe traditional results conference calls, we held a meeting between the analystsand the Chairman of the São Paulo State Sanitation and Power Regulatory Agency(ARSESP).For purposes of ensuring more transparency and facilitatingthe access to information about SABESP, we have expandedinformation availability on the investor relations website and usedmailing lists as a communication tool. Because of the increased transparence,there was a 34 percent increase in the number of individual shareholders in 2009as compared to 2008.Supplier RelationsThe regulatory framework of the basic sanitation industry (Law 11445/07) placesus in an environment in which business practices should take into considerationthe provisions set forth in the competition protection legislation, in particularLaw 8884/1994. Sabesp widely disclosed its procurement plan to the market inorder to encourage competition among suppliers. We designed our “CompetitionGuidelines for Public Procurement Processes”, which establishes the generalguidelines to expand the portfolio of suppliers and encourage competition.Furthermore, it covers the authorizations in public biddings and the potentialimposition of barriers to the entry of competitors in the market. Another initiativeadopted by Sabesp was the execution of the technical cooperation agreementwith the competition defense agencies: Department of Economic Monitoring(SEAE) and Department of Economic Law (SDE), which provides for theexchanged of information, technical assistance, and preparation of analyses andstudies in the competition and economic regulation areas, related to the waterand water industry. Note also that in 2009 we conducted 870 e-procurementprocesses, totaling R$1.15 billion, representing savings of R$116 million. One ofthe obligations prescribed to maintain the Abrinq Seal is the adopting contractualclauses with suppliers in favor of children’s rights protection. HR6 and HR7Relationship with EmployeesIn 2009, the scenario which we faced required continuous adaptations andadjustments to our corporate processes, and it was necessary to adopt peoplemanagement practice that would favor the overcoming of the many challengesfaced by us. In view of this countless challenges, Sabesp’s people managementis aligned with our business strategy, and is based on organizational values andprinciples.Human Capital IndicatorsOur headcount consists of 15,103 employees with employment contractsgoverned by the Labor Code (CLT), 931 interns, and 468 young apprentices,and as regards the latter, we contribute to their development as citizens, theirprofessional qualification, and insertion in the formal labor market, by creatingjob training opportunities. Note that we do not subcontract outside services andcontract services as needed. We also count on a workforce of approximately7,106 service providers included in these agreements. Our personnel is comprisedof 81 percent male and 19 percent female employees, with an average period of17.6 years working at Sabesp, and 69.9% of our employees are over 40 yearsold. Note that 18.1 percent of our employees completed elementary school, 47.4percent graduated from high school, and 34.5 percent are college graduates. Thedistribution of the employees by ethnic group is 12,822 Whites, 1,998 Multiracial/Blacks, 260 Asians, 2 Amerindians, and 23 undeclared. We comply with Decree3298 of 1999, which requires the allocation of 5 percent of the positions offeredthrough public selection processes to physically disabled individuals. LA1Table 22: LA13 Headcount distribution by position, gender and raceManagers College students Adm./Technical OperationalMale Female Male Female Male Female Male FemaleAno 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009White 429 415 115 117 1,620 1,522 873 873 4,264 3,945 1,583 1,464 5,145 4,463 82 58Black andMultiracial20 17 6 4 132 130 88 88 667 609 203 188 1,105 944 29 21Asians 14 16 1 1 86 83 52 52 46 48 52 46 13 12 0 -Amerindians 0 - 0 - 0 - 0 - 1 2 0 - 0 - 0 -Undeclared 0 - 0 - 3 3 0 - 5 5 2 2 13 11 0 -Total 463 448 122 122 1,841 1,738 1,013 1,013 4,983 4,609 1,840 1,700 6,276 5,430 111 79126 Relatório de Sustentabilidade 2009 127