Our
 People


We operate in a service industry. This means that the motivation and wellbeing of our staff are critical to our operations. Employees and the way they work make all the difference. We are pleased to report that an increased number of business units meet the international standards of Investors in People (IiP) and the Occupational Health and Safety Assessment Series (OHSAS 18001).

This section deals with our social performance. We recognise that our people are the most important sustainable competitive advantage we have. We aim therefore to cultivate mutually-beneficial relationships with each of them. We focus on the following (GRI) key performance indicators:

• Workforce
• Occupational Health and Safety Assessment Series 18001 (OHSAS 18001) certification
• Road traffic accident fatalities
• Blameworthy road traffic accident rate (average per 100,000 kilometres and per vehicle)
• Lost time accidents frequency rate (LTAFR)
• Workplace fatalities
• Investors in People certification
• Employee engagement
• Turnover and retention
• Absenteeism
• Diversity and opportunity
• Training hours
• Social inclusion
• SA 8000 certification
• Corporate citizenship

The GRI indicator numbers are provided in the heading of each table.

Workforce

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Workforce	GRI indicator: LA 1
Headcount¹	FY 2004²	FY 2005²	FY 2006
Mail	81,129	76,619	84,731
Express	46,502	48,845	54,060
Non-allocated	430	836	431
TNT	128,061	126,300	139,222
Full time equivalents (year average)³	FY 2004²	FY 2005²	FY 2006
Mail	43,825	41,724	42,691
Express	42,876	44,847	49,858
Non-allocated	417	822	424
TNT	87,118	87,393	92,973
1. Including temporary employees on our payroll. 2. The numbers for 2005 and 2004 have been adjusted for comparative purposes. 3. FTEs (full time equivalents) are calculated each month based on the total hours worked divided by the local standard week or local contracts. The yearly average is calculated by adding together the monthly numbers and dividing the result by twelve.

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Mail workforce	GRI indicator: LA 1
Headcount	FY 2004	FY 2005	FY 2006
Mail Netherlands	65,326	58,880	56,997
Cross-border Mail	885	821	743
European Mail Networks	13,426	15,509	26,325
Data and document management	1,492	1,409	665
Full time equivalents (year average)	FY 2004	FY 2005	FY 2006
Mail Netherlands	36,226	33,841	31,826
Cross-border Mail	793	737	666
European Mail Networks	5,317	5,868	8,745
Data and document management	1,489	1,278	1,454

This table shows a decline in Mail Netherlands headcount and FTEs and a growth in European Mail Networks. Since Mail Netherlands is certified to all management systems (except SA 8000) and European Mail Networks in most cases is not yet certified, this causes declines in Mail’s overall certification percentages.

Health and Safety

OHSAS 18001 certification

We strive to ensure that our employees can do their job in a healthy and safe working environment. We achieve this through our management approach of certifying our entities according to the OHSAS 18001 standard.

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GRI indicators: 3.20 & LA 6
OHSAS 18001 certification	FY 2004	FY 2005	FY 2006
▲ Percentage of total FTEs working in certified sites
Mail	0%	0%	77%
Express	1%	45%	87%
TNT	0%	23%	82%

Health and safety is a major focus area within Mail and Express and we are pleased to report that we are ahead of our certification target. In Express, 36 reporting units achieved the OHSAS standard in 2006, namely: Air Network Maintenance & Engineering, Australia, Austria, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China, Czech Republic, Fiji, France, Japan, Jordan, Kuwait, Liège Air Hub, Lithuania, Luxembourg, Namibia, Netherlands, New Zealand, Norway, Philippines, Poland, Russia, Saudi Arabia, Spain, South Africa, Switzerland, Thailand, TNT Information & Communication Services, Turkey, United Arab Emirates, United States of America and Vietnam. Within Mail, the entire Mail Netherlands business line with over 30,000 FTEs was OHSAS 18001 certified in 2006.

Road safety

Road safety is a crucial part of the health and safety management system that sets the minimum standards for all TNT countries worldwide. Within Mail Netherlands, we use on-board computers to monitor the driving behaviour of our employees. All scores, positive and negative, are discussed on a team level and on the individual level by the drivers’ managers. The managers coach employees to improve their driving behaviour.

In 2006, TNT Express implemented an improved road safety management system. This focuses on behaviour-based driver training for all drivers, ensures risk assessments are conducted annually, that risk controls are effective, that accidents are investigated and that mitigating actions are taken to create more sustainable road safety practices. Communications also featured strongly with the implementation of a road safety campaign.

These programmes were cascaded to subcontractors wherever possible.

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GRI indicator: LA 7
▲Road traffic accident fatalities (excluding subcontractors)	FY 2004	FY 2005	FY 2006
Mail	no data	2	0
Express	9	5	3
TNT	no data	7	3

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GRI indicator: LA 7
▲ Blameworthy road traffic accident fatalities	FY 2004	FY 2005	FY 2006
Mail*	0	1	0
Express	0	4	1
TNT	0	5	1
* The 2004 figure only includes Mail Netherlands.

One blameworthy road traffic accident fatality occurred within Express European Road Network.

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Subcontractor road traffic accident fatalities	FY 2004	FY 2005	FY 2006
Mail	no data	0	0
Express	10	14	11
TNT	no data	14	11

Eleven road traffic accidents fatalities occurred involving subcontractors: one in Australia, three in India, two in France, one in the United Kingdom, one in European Road Network, one in the Benelux, one in Italy and one at TNT Innight.

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GRI indicator: LA 7
Blameworthy road traffic accident rate	FY 2004	FY 2005	FY 2006
Average per 100,000 kilometres
Mail*	4.59	5.01	4.07
Express	1.06	0.96	1.00
TNT	1.97	2.06	1.98
* The 2004 figure only includes Mail Netherlands.

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GRI indicator: LA 7
Blameworthy road traffic accident rate	FY 2004	FY 2005	FY 2006
Number per vehicle
Mail*	1.32	1.26	1.25
Express	0.36	0.33	0.34
TNT	0.65	0.63	0.65
* The 2004 figure only includes Mail Netherlands.

In the Netherlands (Mail and Express), all vehicle damages are assumed to be blameworthy unless proven otherwise. Outside the Netherlands, only blameworthy accidents are reported.

Mail will improve their registration in order to increase alignment within TNT regarding the definition of blameworthy road traffic accidents.

The decline in the blameworthy road traffic accident rate per 100,000 kilometres in the Mail division is caused by the fact that European Mail Networks is reporting for the first time on this KPI. The European Mail Networks rate is significantly lower than that for Mail Netherlands. The main reason for this difference is the definition used by Mail Netherlands. As described before within Mail Netherlands, the definition includes all damages unless proven not blameworthy while European Mail Networks is using a less strict definition.

Workplace safety

TNT has committed itself to the OHSAS 18001 health and safety management system (OHSAS 18001) that sets the minimum standards for all TNT countries worldwide. In the certified parts of our organisation, this management system is reviewed each year and updated where necessary. The health and safety management system ensures that risk assessments are conducted annually, that risk controls are effective, that workplace inspections and internal audits are conducted, that competence is enhanced through training and coaching and that all accidents are investigated and root causes identified. In 2006, TNT Express’ Managing Safety programme was accredited externally by the Institution of Occupational Health and Safety (IOHS).

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GRI indicator: LA 5
Lost time accidents frequency rate	FY 2004*	FY 2005*	FY 2006
Lost time accidents per 200,000 hours
Mail	no data	no data	1.5
Express	3.3	3.2	4.4
TNT	no data	no data	3.1
* Based on the number of FTEs in OHSAS 18001-certified sites.

In 2005, Express reported only on OHSAS 18001-certified sites. In 2006, this indicator is reported for all Express countries. Some of the additional countries have higher accident rates.

Within Mail, Cendris, European Mail Networks and Mail Netherlands reported for the first time on their lost time accident frequency rate.

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GRI indicator: LA 7
▲ Workplace fatalities	FY 2004	FY 2005	FY 2006
Mail*	0	0	1
Express	1	1	0
TNT	1	1	1
* The 2004 figure only includes Mail Netherlands.

In 2006, one workplace fatality occurred in Mail Netherlands in which a mailwoman died crossing the road.

Investors in People certification

Investors in People ensures our people receive the attention they deserve, both on a group level through team discussions and through individual coaching. Where necessary, staff may attend supplementary training, allowing them to expand their professional horizons. Each year, progress discussions are held with all employees in which the focus is on their performance, behaviour and personal development.

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GRI indicator: 3.20
Investors in People certification	FY 2004	FY 2005	FY 2006
▲ Percentage of total headcount working in certified sites
Mail	76%	74%	68%
Express	94%	97%	98%
TNT	82%	82%	79%

Certification is on target. The decline within Mail is due to the significant decrease in the number of employees within the certified part of Mail (Mail Netherlands). Other growing Mail business lines are not certified to date. In Express, all units are Investors in People certified, with the exception of Innight, which will be covered in 2007.

Employee engagement

In January 2006, the existing employee motivation/engagement surveys were upgraded to a TNT company-wide standardised global engagement survey. The survey investigates the most important drivers for individual and business unit engagement. The drivers it covers are:

• TNT energises me to go the extra mile.
• I’m willing to work beyond what is required in my job in order to help TNT succeed.
• I am proud to be part of TNT.
• I would recommend TNT as a good place to work.
• I fully support TNT’s standards.
• I believe strongly in the goals and objectives of TNT.
• I do not intend to leave TNT.

We sent an extended survey translated into 36 languages to our staff, which was returned with a response rate of 69%, or 86,000 people.

The global engagement survey shows that local circumstances play a major role in how employees perceive TNT as an employer. The good news is that TNT engagement scores are in most categories higher than the industry benchmark. Nevertheless, on a generic operational level, special attention was raised for work circumstances, opportunities for personal development and leadership/communication. As a whole, TNT scored well on “Image and corporate sustainability” and “Customer Focus”.

When we compare TNT’s engagement scores against world class standard, we still have room for further improvement.

The TNT Board of Management considers the engagement survey an important tool for assessing whether we are moving forward in instilling pride in all our people and has therefore included this measurement in the mission-related pay scorecards of senior management. We are addressing all areas of the 2006 employee engagement scores.

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GRI indicator : LA 4
Employee engagement	FY 2004*	FY 2005*	FY 2006
Percentage of employees in headcount who were satisfied or more than satisfied with TNT as an employer
Mail**	72%	no data	71%
Express	88%	88%	88%
TNT	79%	no data	79%
* Based on the number of FTEs in IiP-certified sites. ** In 2005 no employee engagement survey was conducted in the Mail division as it performs employee engagement surveys every two years.

Turnover and promotion from within

We strive for the personal development of our employees and therefore encourage internal promotion.

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GRI indicator: LA 2
Turnover	FY 2004*	FY 2005*	FY 2006
% of voluntary turnover in headcount
Mail	8%	10%	14%
Express	10%	11%	10%
TNT	9%	11%	12%
* Based on the number of FTEs in IiP-certified sites.

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GRI indicator: LA 2
Promotion from within	FY 2004*	FY 2005*	FY 2006
% of management vacancies filled from within in headcount
Mail	82%	84%	89%
Express	62%	48%	49%
TNT	63%	49%	50%
* Based on the number of FTEs in IiP-certified sites.

The voluntary turnover increased significantly within Mail due to the efforts of the Mobility team (please refer to Case I). As a result of the decrease in employee numbers within Mail Netherlands, the level of promotion from within is high. In 2006, Cendris and European Mail Networks reported on the number of vacancies filled from within for the first time. The overall TNT performance is influenced strongly by the Express performance as Mail only reported a very limited number of vacancies filled from within compared to Express.

Absenteeism

In order to improve internal benchmarking and to report comparable absenteeism percentages, we introduced a global definition of absenteeism in 2005. In 2006, absenteeism in Express was 4.4%, excluding the following business units: Australia, Australia Ritaway, European Road Network, Hungary, Russia, Denmark, India, Middle East and Africa. In Mail, absenteeism was 5.6% for Mail Netherlands. The other business lines in Mail are not yet reporting on absenteeism. In group head office, absenteeism was 1.9%.

Diversity and opportunity

We strive to create equal opportunities for all our employees, without discrimination on the grounds of sex, race, religion, marital status or age.

In 2005, the percentage of women in management positions declined compared to 2004 and the percentage of women attending the Annual Senior Management Meeting (ASMM) 2006 was only 10%. To address the issue, the Board of Management aimed to obtain reliable data on the number of high potentials in our middle management by gender to investigate whether there is a “pipeline of talent” to improve the current situation.

In October 2006, we conducted a survey to identify the barriers for development and retention of talented women at TNT. All men and women in TNT’s Top 2500 were invited to participate. The survey ran on the Internet, allowing participants to complete the survey from any location. The response was 54%. We will communicate the conclusions and action plan in our next SR report.

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GRI indicator: LA 11
Diversity: gender profile	FY 2004*		FY 2005*		FY 2006
In % of headcount	Male	Female	Male	Female	Male	Female
Mail	61%	39%	63%	37%	61%	39%
Express	68%	32%	68%	32%	68%	32%
TNT	64%	36%	65%	35%	64%	36%
* Based on the number of FTEs in IiP-certified sites.

There was a slight increase in the number of women within Mail.

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GRI indicator: LA 11
Management positions by gender	FY 2004*		FY 2005*		FY 2006
as a percentage of total management	Male	Female	Male	Female	Male	Female
Mail	87%	13%	85%	15%	65%	35%
Express	73%	27%	76%	24%	75%	25%
TNT	74%	26%	76%	24%	74%	26%
* Based on the number of FTEs in IiP-certified sites.

Within Mail, women in management positions increased significantly as Cendris and European Mail Networks reported on the gender profile of management for the first time in 2006.

The overall TNT performance is strongly dominated by the Express performance as Mail only reported 208 women in management positions compared to 1,317 in Express.

Training

We employ competent, capable and enthusiastic people. We provide our employees with the necessary resources, training and recognition to maximise their own potential and individual contribution to the business. We also want employees to appreciate how they contribute to us being a good corporate citizen and environmentally-responsible operator. We therefore provide specialist training to comply with standards such as Investors in People, ISO and EFQM, and specific training on integrity, social responsibility, our Business Principles and corporate governance. We have extensive management develop-ment programmes both internally and externally with partners such as Erasmus University Rotterdam and Warwick University in the United Kingdom.

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GRI indicator: LA 9
Average training hours	FY 2004*	FY 2005*		FY 2006
	per employee	per employee	per FTE	per employee	per FTE
Mail	13	11	20	9	17
Express	23	30	32	27	29
TNT	17	19	27	17	24
* Based on the number of FTEs in IiP-certified sites.

The number of training hours decreased within Mail as, in 2005, a large number of training sessions were given as a result of the start of TNT Mobility. In 2006, this training was no longer provided. Due to the decrease in size of Mail Netherlands, the influx of new staff has reduced so that less initial training is required.

With the focus on certification starting in 2005 within Express, there was an increase in the training needed to achieve certification. The planning for the implementation meant that the major business units’ training programmes started in the second half of 2005. For the smaller units in Asia, Americas and Middle East, training started in the first half of 2006. As a result, there was a decrease in overall training in the larger and more complex units compared to the smaller ones.

Social inclusion

We offer employment opportunities to potential employees who have a medically-recognised physical or mental handicap or disability. Where possible, we accommodate any special needs they may have, including adapting the workplace.

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GRI indicator: LA 10
Employees with a disability	FY 2004*		FY 2005*		FY 2006
	Number in headcount	%	Number in headcount	%	Number in headcount	%
Mail	2,980	4.9%	2,564	4.5%	2,134	3.2%
Express	269	1.1%	342**	0.9%	353	1.0%
TNT	3,249	3.9%	2,906	3.1%	2,488	2.4%
* Based on the number of FTEs in IiP-certified sites. ** Express Netherlands restated its 2005 figures as no definite definition for disability has been agreed to date.

Within Mail Netherlands, the number of employees with a disability decreased in 2006. There are various reasons for this. The introduction of the new ‘WIA’ law in the Netherlands has changed the classification of disabled persons, and the influx of employees with a disability decreased, while the outflow of employees with a disability remained stable.

SA 8000 certification

To ensure compliance with the UN Universal Declaration of Human Rights, the ILO Conventions and the OECD Guidelines for multinational enterprises, TNT aims to certify all sites outside OECD countries according to SA 8000 by the end of 2007. In our opinion, SA 8000 will ensure proper and decent working conditions and respect for human rights in countries where this is not necessarily guaranteed by national legislation or the enforcement regime.

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GRI Indicator LA 3
SA 8000 certification (based on all sites in non-OECD countries)	FY 2004	FY 2005	FY 2006
▲ Percentage of FTEs working in certified sites
Mail	not applicable	not applicable	not applicable
Express	0%	5%	48%
TNT	0%	5%	48%

Certification is ahead of target. In 2006, Express achieved accreditation to SA 8000 in 12 reporting units: Bahrain, China, Chile, Estonia, Hong Kong, Kuwait, Latvia, Lithuania, Romania, Russia, Singapore and United Arab Emirates, covering 48% of FTEs working in non-OECD countries.

Mail has almost no employees working in non-OECD countries.

Corporate citizenship

In December 2002, the United Nations World Food Programme (WFP) and TNT launched a groundbreaking partnership aimed at a single common goal: fighting world hunger. The World Food Programme is the world’s largest humanitarian aid agency. In 2006, WFP reached 97 million people in 82 countries, including most of the world’s refugees and internally-displaced people. As the United Nations’ logistics arm for humanitarian aid, it coordinates with other United Nations agencies, governments and non-governmental organi-sations to deliver food to the right place, at the right time.

Both parties benefit from the partnership. On a company level, an internal survey released in 2006 indicated that 47% of TNT employees had participated in the partnership in one form or another and that 41% stated that the partnership had increased their pride in the company. On an individual level, TNT specialists and volunteers are able to improve their skills and increase their knowledge through their work with WFP.

WFP benefits through our ongoing commitment to sharing our resources and know-how with them. In 2006 alone, we committed €9.0 million. This included knowledge transfer projects (€2.1 million), support to emergencies (€2.2 million), and awareness & fundraising projects (€2.1 million). These efforts involved TNT employees in more than 90 countries. In addition, the result of the twinning model with WFP, which consists of the employee fundraising results and corporate matching, was €2.5 million. Since the start of the partnership, TNT has contributed a total of €32.3 million to WFP operations and TNT employees have raised €7.4 million for the WFP School Feeding Programme.

In 2006, more than 30 TNT staff assisted WFP in responding to emergency situations in four countries: Indonesia, Pakistan, Togo and Lebanon. TNT provided transport, warehousing and personnel in addition to a range of other ad hoc activities to help WFP and other aid agencies get help to those in need fast. In Ghana, TNT is providing warehouse space to WFP for storing emergency supplies. The depot will enable WFP to respond quicker to emergencies in West Africa.

Funds raised by TNT employees went to support the WFP School Feeding Programme in Cambodia, the Gambia, Malawi, Nicaragua and Tanzania. In these countries, 36 TNT employees spent three months working side-by-side with WFP on school feeding projects, where they witnessed the impact of the donations on children’s lives firsthand.

TNT employees raised USD 100,000 for 22 of their colleagues and families in Indonesia, which were struck by the earthquake early in 2006.

Our logistics business, renamed CEVA Logistics after the sale, intends to continue the partnership with WFP.

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GRI Indicator EC 10
Moving the world	FY 2003	FY 2004	FY 2005	FY 2006
In €1,000
Actual contributions*	4,999	8,703	9,565	8,988
Employee fundraising*	1,033	1,768	2,159	2,421
* The figures in this table represent TNT including our discontinued logistics business, as the registration does not enable us to exclude this.

You will find a complete overview of the partnership and its activities at http://group.tnt.com/wfp.