2008 Registration Document - Rexel

5. Social responsibilityaccount for the Rexel Group’s new European scope, anamendment was signed on June 6, 2008 integrating fivecountries in which the Rexel Group had not been presentuntil this acquisition (Estonia, Finland, Latvia, Lithuania,Norway). As a result, the number of countries representedat the European Works Council was brought to 22. Othertopics were introduced and discussed including an actionplan to the benefit of “senior” employees, labor andenvironmental reporting procedures and the setting up andlater suspension of Opportunity08.Collective bargaining agreementsThe number of agreements entered into between employeerepresentatives and the Rexel Group is increasing:76 agreements were negotiated in 2008.These agreements were entered into in the followingcountries: Australia, Belgium, Canada, Spain, Finland,France, Latvia, Norway, Austria and Portugal. Among otherthings, the collective bargaining agreements concern:incentives, overtime hours, the Gestion Prévisionnelledes Emplois et Compétences (GPEC), profit sharing,organization and flexible working hours.2006 2007 2008Number of agreementssigned 19 36 76Profit-sharing agreementsA profit-sharing agreement has been negotiated withinRexel France S.A.S. in 2007. Upon the request of 2 tradeunions, the profit-sharing agreement was submitted to theapproval of the employees of Rexel France S.A.S. and wasadopted by 80.34% of these employees. The calculationmethod set forth in this profit-sharing agreement is identicalto the one provided by the French Labor Code.Incentive agreements in FranceAn incentive agreement at the level of Rexel France S.A.S.was entered into in June 2007. The sharing of profitsis based on the redistribution of part of the differencebetween the annual budget and the actual annual EBITA.In 2008, an amendment to this incentive agreement aimingat improving budgeted target achievement and determininga minimum incentive amount payment for each member ofstaff was entered into.Within Rexel Développement, a three-year incentiveagreement (2006, 2007 and 2008) entered into on June29, 2006, provides for a sharing of profits based on thethree following criteria calculated at the Rexel Group level:evolutions of sales, variation in the gross operating marginand the working capital requirements.Within Conectis, a three-year incentive agreement (2006,2007 and 2008) entered into on June 28, 2006, providesfor a sharing of profits based on the company’s operatingresults before tax and the company’s sales.Within Dismo, a three-year incentive agreement for years2008, 2009 and 2010 was entered into on June 6, 2008.For the financial year 2008, this agreement is based onthe variation of the income before tax expressed as apercentage of the company’s sales. For the financial years2009 and 2010, this agreement is based on the variation ofthe income before tax, expressed as a percentage of thecompany’s sales, and the operating expenses, expressedas a percentage of sales.Lastly, Appro 5, a subsidiary of Rexel France S.A.S., hasa three-year incentive agreement which ended in 2008,signed individually by each member of staff. This agreementis based on the portion of the net profit exceeding ashareholders’ equity remuneration at a rate equal to theinflation rate of the year (retail price INSEE index) plus 2%.Industrial actionsIn 2008, the total number of strike hours was 1,823; thecountries concerned were France (1,820 strike hours overtwo working days) and Finland (3 hours).In France, two strikes took place over the course of theyear 2008. The first strike took place in March and wasassociated with a national strike during the ObligatoryAnnual Negotiation (NAO). The second strike took placein December during the drafting of a Plan to SafeguardEmployment (PSE) at the level of Rexel France.5.1.7 Health and safetyThe Rexel Group has always paid particular attention tothe safety conditions of its employees and assets in everycountry and for every business.As workplace hygiene, health and safety themes arespecific to local environments, each country autonomouslymanages the risks inherent in their activities at their ownscale.However, at the Rexel Group level, numerous indicatorsare tracked and analyzed in order to define adapted actionplans.Number of accidentsresulting in deathNumber of accidentsresulting in medicalleaveNumber of accidentsnot resulting in medicalleave2006 2007 20081 0 1390 440 630384 383 524In 2008, the total number of accidents at the Rexel Groupwas 1,155, or an increase of 332 compared to 2007.The number of working days lost as a result of workplaceaccidents was 14,253 in 2008 (i.e., 107,475 hours).Commuting accidents were the origin of the only accidentwhich resulted in death in 2008, of 11.7% of accidentswhich resulted in medical leave, and of 4.4% of accidentswhich did not result in medical leave.PAGE 54 | REXEL 2008