The Code of Conduct confirms CNH Industrial’s commitment to offering all employees equal opportunities in the workplace and in their professional advancement. The head of each Region is responsible for ensuring that, in every aspect of the employment relationship, be it recruitment, training, remuneration, promotion, relocation or termination of employment, employees are treated on the basis of their ability to meet the requirements of the job. The Company rejects all forms of discrimination, and in particular discrimination based on race, gender, sexual orientation, personal and social status, health, physical condition, disability, age, nationality and religious or personal beliefs. Offering career opportunities and advancement free from discrimination while encouraging and respecting diversity are among the commitments emphasized in the CNH Industrial Human Capital Management Guidelines and CNH Industrial Human Rights Guidelines approved by the Board of Directors and available on the corporate website. Given CNH Industrial’s global presence, there may be significant differences in legislation among countries where the Company operates, as well as different levels of awareness, concern and ability among employees in applying the principles of non-discrimination. The Company Code of Conduct and specific Guidelines ensure that the same standards are applied worldwide. Indeed, as stated in the Code of Conduct, Company standards supersede in jurisdictions where legislation is more lenient. In addition, a variety of Company initiatives are in place to build awareness of the importance of a diverse and inclusive workforce.
This is the case in the NAFTA Region, where a specific Equal Employment Opportunity Policy ensures that relationships with employees, applicants, suppliers, and subcontractors are non-discriminatory, that management practices are developed aiming at affirmative action goals in compliance with the law, and that a work environment is fostered free from discrimination and harassment.
The responsibility for diversity management lies with the heads of Human Resources of each Region, who report to the Chief Human Resources Officer, a member of the GEC. Each one of them is responsible for the overall implementation of the Code of Conduct, and for the internal and external communication of the principles of the Code and its Guidelines. CNH Industrial specifically focuses on the business processes relevant to recruiting, hiring, placement, and training activities to ensure the application of the principles of the Code of Conduct.
The management of this area is most developed in Regions such as NAFTA, where the Policy Statement is disseminated through Company bulletin boards and other internal communication channels, periodically discussed with management at meetings or training, and distributed to personnel involved in recruiting, hiring, placement, and training activities. The responsible of Human Resources at regional level oversees the development of Affirmative Action Plans and related governmental reporting, ensuring they are adequately implemented by the Company.
MEN AND WOMEN
The promotion of equal opportunities for men and women in the workplace is an objective shared by the Company and by employee representatives alike. This issue forms part of the social dialogue of each country, and follows local regulations and practices. In Italy, CNH Industrial companies with more than 100 employees are required (under article 46 of Italian Legislative Decree no. 198 of 11 April 2006, and subsequent amendments) to present a report on male and female employment every two years. In 2012, the report for the period 2010/2011 was presented to union representatives and to the regional equal opportunities advisor. These complex and multifaceted reports contain information, among other things on training, rates of pay, promotion and turnover.
The specific collective labor agreement that came into force as of 1 January 2012 for all CNH Industrial companies in Italy, replacing the national collective labor agreement for metalworkers, envisages the setting up of an equal opportunities commission in each CNH Industrial company, made up of company representatives and workers.
The commission is tasked with: monitoring employment conditions for women (also with reference to the two-year report); studying the feasibility of and implementing initiatives aimed at promoting affirmative action and at encouraging behaviors consistent with equal opportunity principles; preventing discrimination, including that linked to workers’ gender, race or lifestyle; and examining any other disputes from an equal opportunity standpoint. It is worth mentioning that, of the trade union agreements stipulated at Company level worldwide in 2013, 5% addressed equal opportunities.
A study carried out in October 2013 on 97.7% of CNH Industrial’s workforce globally showed that around 15% of workers are represented by joint committees, i.e., organizations comprising Company and worker representatives, with expertise in equal opportunities. It should be noted that, within the scope of trade union agreements and joint bodies, the concept of equal opportunities is not limited to gender equality.
Female employment in numbers
In 2013, the presence of women in the Company’s workforce increased by 5.5% over the previous year, while the overall number of employees increased by 4.3%. Women represent approximately 14% of CNH Industrial’s workforce worldwide. There was an increase in women in the workforce in all Regions compared with 2012, especially in LATAM where the increase was about 30%. Despite this increase, LATAM has the lowest proportion of female employees (11%), mainly due to the predominance of hourly employees which represent 75% of the Region’s total workforce, and of which the majority are men.
WOMEN EMPLOYEES BY REGION
The highest female presence was recorded in Trucks and Commercial Vehicles (15%) and other businesses(51%). Specifically, female employment is concentrated in the age group from 31 to 40 years, and among those with 6 to 10 years of employment at CNH Industrial.
The proportion of female workers in each employment category is in line with to the previous year. Other indicators on gender are available in the Appendix. (see pages 214, 217-218).
WOMEN EMPLOYEES BY CATEGORY
In its commitment to ensure an inclusive work environment and equal opportunities for all employees, CNH Industrial adopts a progressive total compensation system based on equitable and fair criteria. At the heart of the Company’s compensation philosophy lies the concept of meritocracy, which acknowledges the value of a high performance culture and the importance of a market-driven approach. To support these elements of meritocracy, the Company has defined a compensation system that comprises a number of different components. This comprehensive package rewards employees for their contribution to the Company’s results, provides development opportunities and allows them to share in the business success they help create. Base salary, benefits and long-term incentives are determined by market-driven benchmarks, therefore ensuring fair and objective treatment for all employees in the different markets around the world. The specific criteria for adjustments focus on closing competitive gaps with respect to market position, giving priority to top performers. Variable compensation and career development are impacted by individual contribution, which is vigorously evaluated through a performance and leadership management program that is consistently deployed throughout the entire organization.
The same metrics and methodology are applied in this assessment of annual performance to all eligible employees worldwide. Additionally, the Company employs a formal process to monitor the application of its core equity and fairness principles to compensation levels, annual salary reviews and promotions. In particular, these reviews are based on standard criteria, and do not allow manager discretion for those receiving compensation actions. Combined together, all of these actions ensure the Company’s total compensation system, in line with all other internal processes related to people management, effectively contributes to ensuring equal opportunities and treatment for all individuals regardless of age, gender, race, religious belief or other such factor or attribute.
People with disabilities
CNH Industrial’s commitment to diversity and inclusion involves a range of initiatives to help employees work in an open, flexible, and challenging environment. Studies are carried out every one or two years to monitor quantitative changes and improvements.
A survey monitoring the employment of disabled workers is performed every two years. The last survey was carried out in 2012 (see also the 2012 Fiat Industrial Sustainability Report, pages 171-172) in 34 countries, covering about 98% of the Company’s workforce. Regulations in certain countries (including Austria, Brazil, France, Germany, Italy, and Spain) require companies to employ a minimum percentage of disabled workers (which may vary in relation to the headcount of the company or plant). These laws also give employers alternative options, such as paying contributions into specific funds for the differently abled, or establishing agreements with relevant bodies for the phased-in hiring of this category of employees, etc. The survey showed that in these countries (14 mapped, accounting for 67% of the Company’s global workforce), disabled workers made up 3.1% of total employees. This average is the result of different scenarios and of local legislation that establishes minimum quotas ranging from 1.5% to 7%. These quotas are calculated on, or with reference to, company headcounts. The survey also showed that differently abled women account for 11% of the total surveyed, similar to the percentage of total female employees in the entire workforce (14%).
In many other countries (including Argentina, Australia, Belgium, Canada, Mexico, Poland, the UK, and the USA) there is no legislation relating to the employment of disabled people that establishes minimum quotas, although other forms of protection are available in some cases (i.e., related to working hours or workplace environment, specific grants/benefits for companies employing differently abled workers, etc.). In the countries where this latter form of protection applies, of which twenty were mapped in the survey, there are objective limitations to reporting the number of disabled workers, as the information is sensitive and often subject to data protection legislation; as a result, the Company is aware of the personal status of employees only if they choose to disclose it.
In 2013, a survey involving 98% of CNH Industrial’s workforce in the USA analyzed the number of employees belonging to ethnic minorities as recognized by local legislation. The mapping showed that 15% of employees (compared to 14% in 2012) belonged to ethnic minorities (26% of which were women), and specifically that 20% of female employees and 14% of male employees belonged to an ethnic minority. An employee nationality survey was carried out in 11 countries at CNH Industrial companies that comprised a total headcount of 86% of the Company’s workforce worldwide. The survey evidenced that 3% of employees (compared to 4% in 2012), evenly distributed between men and women, belonged to a nationality other than that of the country surveyed. As in 2012, Germany was once again the country where CNH Industrial companies employed the highest percentage of workers of a nationality other than that of the hosting country, with 9% of foreign employees (vs. 10% in 2012).