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. Our people management approach consists of three components: alignment with the OHSAS 18001 standard, with the Investors in People standard and with the SA 8000 standard. OHSAS 18001 sets standards for continuous work-related health and safety improvement on the entity level and allows for localised focus on improvements. Investors in People sets standards for continuous operational performance through management and employee development. SA 8000 sets standards to ensure proper and decent working conditions with respect for human rights.
OHSAS 18001, Investors in People and SA 8000 certification
OHSAS 18001 certification
We strive to ensure that our employees can do their job in a healthy and safe working environment. We achieve this by embedding a strong safety culture top-down and bottom-up. OHSAS 18001 helps us to continuously improve health and safety in the workplace.
| OHSAS 18001 certification ▲ | GRI indicators: 4.12 & LA 6 | ||
| Percentage of total FTEs working in certified sites | 2005 | 2006 | 20071 |
| 0% | 77% | 76% | |
| Express | 46% | 89% | 96% |
| TNT | 23% | 82% | 86% |
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Within Mail, the following six additional entities were certified in 2007: Cendris Head Office, Cendris Customer Information, Cendris Document Presentment, Cendris Print Management, EMN Czech Republic and EMN Slovakia. As a result of the decreased number of FTEs in certified entities and the increased number of FTEs in uncertified entities, the certification level within Mail fell in 2007.
The following 11 entities within Express obtained an OHSAS 18001 certificate in 2007: Denmark, DHO, Document Services Mauritius, Fashion Netherlands, Germany, IBU Head Office, India, Pan Air, Romania, Singapore and Slovakia.
TNT Group Head Office and Innight Netherlands also obtained an OHSAS 18001 certificate in 2007.
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 evaluations are held with all employees with a focus on their performance, behaviour and personal development.
| Investors in People certification ▲ | GRI indicator: 4.12 | ||
| Percentage of total headcount working in certified sites | 2005 | 2006 | 20071 |
| 74% | 68% | 77% | |
| Express | 100% | 100% | 94% |
| TNT | 83% | 79% | 82% |
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Within Mail, the following two additional entities were certified in 2007: EMN Czech Republic and EMN Slovakia.
Express China mainland and TNT Group Head Office both had a successful IiP audit in 2007 and will receive the certificate in 2008.
SA 8000 certification
To ensure compliance with the UN Universal Declaration of Human Rights, the ILO Conventions and OECD guidelines, TNT certifies all its sites outside OECD countries according to the SA 8000 standard. We believe this provides us with a framework to help us manage our social risks in complying with the laws and regulations within the countries in which we operate, preventing the use of child labour and forced labour, improving health and safety, supporting freedom of association, preventing discrimination, implementing performance management and managing compensation and working hours.
As part of this programme, we also encourage suppliers and subcontractors to support our principles and commitment regarding social accountability. In 2008 we will introduce codes of conduct for our suppliers and subcontractors supporting these principles. Collective labour agreements cover the issue of freedom of association in most of our entities so that implementation differs per country.
| SA 8000 certification1▲ | GRI indicators: LA 4, HR 5, HR 6 & HR 7 | ||
| Percentage of FTEs working in certified sites | 2005 | 2006 | 20072 |
| not applicable | not applicable | not applicable | |
| Express | 5% | 48% | 95% |
| TNT | 5% | 48% | 95% |
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Within Express the following additional 14 entities achieved SA 8000 certification in 2007: Argentina, Bulgaria, Egypt, India, Indonesia, Israel, Jordan, Malaysia, Namibia, Philippines, Saudi Arabia, South Africa, Thailand and Vietnam. Document Services Mauritius had a successful SA 8000 audit in 2007 and will receive the certificate in 2008.
In our major acquisitions, we will accelerate the implementation of SA 8000 as we recognise the difficulties with respect to decent working conditions such as working hours in emerging countries.
Workforce
In 2007 the total workforce increased significantly due to the acquisitions within Express. Within Mail a shift in workforce occurred as the workforce in Mail Netherlands decreased while the workforce of European Mail Networks increased.
| GRI indicator: LA 1 | |||
| Workforce in headcount | 2005 | 2006 | 2007 |
| 76,619 | 84,731 | 84,929 | |
| Express | 48,845 | 52,638 | 75,032 |
| Other networks1 | 1,366 | 1,422 | 1,385 |
| Non-allocated | 836 | 431 | 2362 |
| Total headcount | 127,666 | 139,222 | 161,582 |
| Employees of joint ventures included in SR reporting | 539 | 596 | 636 |
| Employees of joint ventures excluded in SR reporting | 5,776 | 6,095 | 3,985 |
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| GRI indicator: LA 1 | |||
| Workforce in FTEs (year average)1 | 2005 | 2006 | 2007 |
| 41,724 | 42,691 | 42,777 | |
| Express | 44,847 | 48,652 | 70,271 |
| Other networks2 | 1,166 | 1,206 | 1,182 |
| Non-allocated | 822 | 424 | 2293 |
| Total FTEs | 88,559 | 92,973 | 114,459 |
| FTEs of joint ventures included in SR reporting | 365 | 510 | 536 |
| FTEs of joint ventures excluded in SR reporting | 4,575 | 4,858 | 3,464 |
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Turnover and promotion from within
We strive for the personal development of our employees and therefore encourage internal promotion. Our workforce is at the heart of our operations and it is through our staff that we can localise our services. As such, we have explicit guidelines regarding local recruitment policy. With some 2,200 locations around the world, guidelines may be complemented where required by local regulations and practices. The minimum notice periods we apply are also in accordance with local legislation.
| Turnover | GRI indicator: LA 2 | ||
| % of voluntary turnover in headcount | 20051 | 2006 | 2007 |
| 10% | 14% | 16% | |
| Express | 11% | 10% | 11% |
| TNT | 11% | 12% | 13% |
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As mentioned in our 2006 social responsibility report, one of the challenges for TNT is the fact that we are experiencing considerable growth outside the Netherlands, but that the main part of our business in Mail is declining in our home market. Without a systematic reduction in labour costs, it seems unlikely that we will be able to stand up to the competitors that have been operating on the Dutch postal market in recent years using cheap labour.
TNT Mail Netherlands has devised a series of Master Plans to counter volume declines in addressed mail that result from this competition and substitution of physical mail by forms of electronic communication in the Netherlands. Given our commitment to social responsibility, we intend to do everything possible to ensure these redundancies will be dealt with in a responsible manner, mobilising people from work to work.
TNT has put in place a series of initiatives to support employees in their search for a job outside TNT. TNT Mobility is the organisation to which employees can turn for individual coaching, training and vacancies inside and outside the company. During 2007 more than 2,500 employees have voluntarily left the company, over 50% of whom were assisted by TNT Mobility. We will continue to make significant provisions to make this possible.
Despite these efforts, we have not been able to find new employment for all excess staff. In 2007 we approached the unions with a proposal in which we requested employees to accept a salary freeze and a decrease in a number of non-market-aligned labour conditions. In September 2007, we initiated a series of discussions with the unions regarding an updated collective labour agreement. At the time this report went to press the terms on which TNT Mail Netherlands and the unions will reach agreement were unclear. Depending on the success of the negotiations for a new collective labour agreement for TNT Mail Netherlands, between 6,500 and 11,000 people will leave the company over time.
| Promotion from within | GRI indicator: LA 2 | ||
| % of management vacancies filled from within in headcount | 20051 | 2006 | 2007 |
| 84% | 89% | 54% | |
| Express | 48% | 49% | 60% |
| TNT | 49% | 50% | 59% |
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Internal promotion decreased significantly in Mail in 2007. This decrease is mainly due to EMN reporting for the first time. Within EMN a large number of managers is recruited externally. Due to the shrinking employment pool within Mail Netherlands, promotion from within in this entity is high.
Within Express the increase in the management positions filled from within was due to organic growth.
Health and safety
TNT recognises that managing health and safety risks cannot be treated in isolation from other processes performed by the company and must be seen therefore as an integral part of our activities.
Within TNT, policies regarding substance abuse are covered by our occupational health and driver fitness policies. Campaigns regarding substance abuse are run locally depending on the level of identified risks. These campaigns are not organised centrally. Besides the extra attention paid to road safety and enhanced training, our work pattern for mobile workers also contributes to road safety. Within Europe, the work patterns of mobile workers are strictly regulated by the use of tachographs. In other parts of the world, mobile workers’ work patterns are addressed by our health, safety and social accountability management systems, which cover working hours, rest facilities and first aid requirements. Where it concerns drivers, these policies cover only TNT employees. We also provide facilities for long-distance truck drivers to maintain personal communications while working.
The management systems are 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 accidents are investigated, including the identification of root causes.
Road safety
TNT is committed to minimising road-related accidents and risks by implementing best practices, tools and techniques into all its activities. TNT seeks to safeguard its employees, visitors, contractors and other members of the public who may be affected by our activities. Within Mail Netherlands, we use on-board computers to monitor the driving behaviour of our employees, to collect management information and steer on fuel efficiency. 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.
Over the last number of years, the implementation of our road safety programme generated positive results, with a decrease in both road traffic accidents and fatalities. In 2007, with the major acquisitions by our Express division, we have had to come to terms with a considerable increase in these statistics. For this reason, we have reinforced our zero tolerance approach towards the occurrence of fatalities in the workplace and more specifically road safety. We have developed specific action plans for our acquisitions and emerging markets. For further information please see this report’s case study Safety first.
One of the areas of the road safety programme is our employee training programme. In 2007 we report for the first time on the average number of transport safety training hours.
| GRI indicator: LA 10 | ||
| 2007 | ||
| Average transport safety training hours | per employee | per FTE |
| 0.04 | 0.08 | |
| Express | 1.30 | 1.40 |
| TNT | 0.58 | 0.78 |
Fatalities
| Workplace fatalities | ▲ | ▲ | ▲ | GRI indicator: LA 7 |
| 2005 | 2006 |
2007
(excluding major acquisitions) |
2007
(including major acquisitions) |
|
| 0 | 1 | 0 | 0 | |
| Express | 1 | 0 | 0 | 1 |
| TNT | 1 | 1 | 0 | 1 |
In 2007, one workplace fatality occurred in Mercúrio in which an employee was crushed by a truck against a loading ramp.
| Blameworthy road traffic accident fatalities (with a TNT employee involved) | ▲ | ▲ | ▲ | GRI indicator: LA 7 |
| 2005 | 2006 |
2007
(excluding major acquisitions) |
2007
(including major acquisitions) |
|
| 1 | 0 | 0 | 0 | |
| Express | 4 | 1 | 1 | 5 |
| TNT | 5 | 1 | 1 | 5 |
Three blameworthy road traffic accident fatalities occurred in Hoau, one in Mercúrio and one in the United Arab Emirates.
| Non-blameworthy road traffic accident fatalities (with a TNT employee involved) | ▲ | ▲ | ▲ | GRI indicator: LA 7 |
| 2005 | 2006 |
2007
(excluding major acquisitions) |
2007
(including major acquisitions) |
|
| 1 | 0 | 0 | 0 | |
| Express | 1 | 2 | 1 | 2 |
| TNT | 2 | 2 | 1 | 2 |
One non-blameworthy road traffic accident fatality occurred in Mercúrio and one in the United Kingdom.
| Subcontractors road traffic accident fatalities | GRI indicator: LA 7 | |||
| 2005 | 2006 |
2007
(excluding major acquisitions) |
2007
(including major acquisitions) |
|
| 0 | 0 | 0 | 0 | |
| Express | 13 | 10 | 7 | 32 |
| TNT | 14 | 11 | 9 | 34 |
Thirty-four road traffic accident fatalities occurred involving subcontractors, 21 of which were in Speedage, four in Mercúrio, one in Austria, one in the United Kingdom, one in Germany, two in France, two in Australia and two in Innight.
For subcontractor road traffic fatality information, we rely on the information that is provided by our subcontractors. Normally, the authorities provide information regarding the investigation directly to the subcontractor company. For this reason, we are unable to distinguish between blameworthy and non-blameworthy subcontractor road traffic accident fatalities.
In total, we regretfully have to report 42 fatalities, including one workplace fatality and 41 road traffic fatalities. This included five TNT employees, 10 subcontractors and 27 third parties.
Blameworthy road traffic accidents
| Blameworthy road traffic accident rate | GRI indicator: LA 7 | ||
| Number per 100,000 kilometres | 2005 | 2006 | 2007 |
| 5.01 | 4.07 | 3.82 | |
| Express | 0.96 | 1.00 | 0.87 |
| TNT | 2.06 | 1.98 | 1.80 |
| Blameworthy road traffic accident rate | GRI indicator: LA 7 | ||
| Number per vehicle | 2005 | 2006 | 2007 |
| 1.26 | 1.25 | 1.14 | |
| Express | 0.33 | 0.34 | 0.37 |
| TNT | 0.63 | 0.65 | 0.63 |
The ratios for blameworthy road traffic accidents per vehicle and per 100,000 km driven decreased within Mail as a result of improved registration aligned with the TNT definition of blameworthy road traffic accidents.
Within Express, as a result of differences in reporting entities, the trend in blameworthy road traffic accidents per vehicle and the blameworthy road traffic accidents per 100,000 kilometres differs over the years.
Lost time accidents
| Lost time accident frequency rate | GRI indicator: LA 7 | ||
| Lost time accidents per 100 FTEs | 2005 | 2006 | 2007 |
| no data | 1.48 | 1.97 | |
| Express | 3.05 | 4.27 | 4.22 |
| TNT | no data | 3.05 | 3.21 |
| Lost time accidents | GRI indicator: LA 7 | ||
| Number of lost time accidents | 2005 | 2006 | 2007 |
| no data | 537 | 789 | |
| Express | 608 | 2,026 | 2,169 |
| TNT | no data | 2,570 | 2,983 |
The total number of lost time accidents increased for both Mail and Express due to an increase in reporting entities.
In order to standardise reporting standards company-wide we introduced a new reporting measurement for lost time accidents in 2007. We also decided to report on the number of lost time accidents per 100 FTEs instead of per 200,000 working hours.
| GRI indicator: LA 7 | |||
| Absenteeism | 2005 | 2006 | 2007 |
| no data | 5.6%1 | 5.3% | |
| Express | no data | 4.4%2 | 4.1% |
| TNT3 | no data | no data | 4.6% |
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Employees
Employee engagement
We now feel that measuring our employee engagement better reflects our organisation with respect to matters such as commitment, organisational citizenship, behaviour and motivation of our employees. While in the past employee satisfaction has been a useful measurement for TNT, employee satisfaction relates to the daily operations while employee engagement refers more to the complete picture of the organisation and its performance.
The global engagement survey measures whether TNT is successful in increasing employment pride and motivation. In 2007, a large part of Mail Netherlands did not participate in this survey. The reorganisations under discussion within Mail Netherlands led to uncertainty amongst employees as to what to expect in the coming period. Clarity on this situation going forward has to be the result of the consultations with the social partners in the first months of 2008. Mail Netherlands therefore decided to postpone the engagement survey until such clarity is achieved. However, the Mail division still considers the engagement survey to be an important tool in the social policy and will continue to take full interest in the views of all employees, even if these reveal a negative trend. It is to be expected that the 2008 survey will again include the Mail Netherlands population.
The company-wide engagement survey undertaken in 2007 again shows that TNT’s engagement scores are higher than the industry benchmark and that engagement within TNT is driven by reputation, principles and social responsibility, leadership, and working relationships. The 2007 global engagement survey results show an overall increase in engagement to a level of 76%.
The most important findings include:
- TNT’s engagement scores are higher than in 2006,
- TNT’s people experience TNT as a special place to work as it visibly and authentically engages with the world around, and
- people development and encouraging teamwork by the direct supervisor remain powerful drivers for engagement. Therefore, recruitment and promotion of the most competent people remain key.
| Employee engagement | |||
| Percentage of employees in headcount who were engaged or more than engaged with TNT as an employer | 2005 | 2006 | 2007 |
| Mail1 | no data | 62% | 74% |
| Express | no data | 75% | ▲ 77%2 |
| TNT | no data | 69% | 76%2 |
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Diversity
We strive to create equal opportunities for all our employees, without discrimination on the grounds of sex, race, religion, marital status or age.
Within TNT we have several networks such as TNT Link, a women’s network, TNT Unity (830 members), a network for supporting multicultural employees and TNT Glbn, a gay, lesbian and bisexual network (350 members). These networks serve our internal emancipatory goals.
TNT Link
TNT Link is an employee network that supports the professional development of women at TNT through networking, learning and mentoring. Founded four years ago, it now has 760 members in 60 countries. Link organises a mentoring programme in which senior managers mentor Link members. The programme helps Link members learn from senior managers while it helps senior managers understand the particular challenges women face in their TNT careers. TNT Link also organises networking events and workshops that focus on business issues and on female leadership.
| GRI indicator: LA 13 | ||||||
| Gender profile | 20051 | 2006 | 2007 | |||
| in % of headcount | Male | Female | Male | Female | Male | Female |
| 63% | 37% | 61% | 39% | 59% | 41% | |
| Express | 68% | 32% | 68% | 32% | 68% | 32% |
| TNT | 65% | 35% | 64% | 36% | 63% | 37% |
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| Management positions by gender In % of total management | GRI indicator: LA 13 | |||||
| 20051 | 2006 | 2007 | ||||
| Male | Female | Male | Female | Male | Female | |
| 85% | 15% | 65% | 35% | 74% | 26% | |
| Express | 76% | 24% | 75% | 25% | 74% | 26% |
| TNT | 76% | 24% | 74% | 26% | 74% | 26% |
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In 2007 we reported for the first time on all management positions within Mail Netherlands. Previously we only reported on the employees with a personal labour agreement within Mail Netherlands. In 2007, Mail Netherlands figures are estimated on the basis of statistical sampling.
In 2007 we focussed on matching further female high potentials with a mentor in our mentoring programme and on embedding tailored HR solutions for women.
Employee compensation is part of the equality principle within TNT so that we do not distinguish between the remuneration of men and women.
We also 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.
| Employees with a disability | GRI indicator: LA 13 | |||||
| 20051 | 2006 | 2007 | ||||
| Number in headcount | In % of headcount | Number in headcount | In % of headcount | Number in headcount | In % of headcount | |
| 2,564 | 4.5% | 2,134 | 3.2% | 1,944 | 2.6% | |
| Express | 342 | 0.9% | 322 | 0.9% | 371 | 0.7% |
| TNT | 2,906 | 3.1% | 2,488 | 2.4% | 2,350 | 1.8% |
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Within Mail Netherlands, the number of employees with a disability decreased in 2007 as an ongoing result of the introduction of the WIA law in 2006.
Within Express the number fell slightly due to the decreased FTE coverage reporting.
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.
Within Express overall training hours per employee were 25, and 27 per FTE in 2007. In 2007 Mail only reported on transport safety training hours.