The Nestlé Employee Relations Policy

PolicyMandatorySeptember 2010The Nestlé EmployeeRelations Policy

PolicyMandatorySeptember 2010Issuing FunctionBusiness Principles, Compliance and Employee RelationsAuthor/issuing departmentCorporate Human ResourcesTarget audienceAll employeesRepositoryAll Nestlé Principles and Policies, Standards andGuidelines can be found in the Centre online repository an-Marc Duvoisin, Deputy Executive Vice PresidentDate of publicationSeptember 2010Copyright and confidentialityThe content of this document may not be reproduced, distributedor disclosed to third parties without proper authorization. All rightsbelong to Nestec Ltd., Vevey, Switzerland. 2010, Nestec Ltd.DesignNestec Ltd., Corporate Identity & Design,Vevey, SwitzerlandProductionAltavia SwissPaperThis report is printed on BVS, a paper producedfrom well-managed forests and other controlled sourcescertified by the Forest Stewardship Council (FSC)Climate neutralprintedCertificate xed SourcesProduct group from well-managedforests and other controlled sourceswww.fsc.org Cert no. HCA-COC-100028 1996 Forest Stewardship Council

1. IntroductionSince its founding, Nestlé has built a culturebased on the values of trust, mutual respectand dialogue. Nestlé management and employeesall over the world work daily to create andmaintain positive individual and collectiverelationships, and are expected to do so as acore part of their job.To foster this culture as a competitiveadvantage, the Nestlé Employee Relations Policyprovides a frame of reference for the collectiverelationships with trade unions and otheremployee representatives based on the “humanrights and labour practices” chapter of theNestlé Corporate Business Principles and onthe Human Resources Policy.VThis Policy reinforces Nestlé’s commitment tolong-term business development through an opendialogue with its employees and external stakeholders in line with its Creating Shared Value concept.The Employee Relations policy not only requiresstrict compliance with the law, but it guides ouractions even if the law is more lenient or wherethere is no applicable law at all.The present Policy replaces the Nestlé IndustrialRelations Policy issued in 2000.2. A company trusted by its employeesand stakeholdersNestlé is committed to promoting a greater knowledge and understanding as well as an integralimplementation of its Corporate Business Principles as the basis for being trusted by employeesand stakeholders.The Company complies with the lawsapplicable in the countries in which it operatesand adheres to the eight fundamental Conventionsof the International Labour Organization (ILO),the Organisation for Economic Co-operation andDevelopment (OECD) Guidelines for MultinationalEnterprises, the United Nations Global Compactand the ILO Declaration on MultinationalEnterprises and Social Policy.Therefore, the Company promotes relevantinternational initiatives in view of continuouslyimproving working conditions.The Nestlé Employee Relations Policy1

I3. A proactive and focused approachNestlé strives for proactive and continuousimprovement of its relationships with internaland external labour stakeholders. The Companyaccomplishes this approach through organizedstructures within the Human Resources department at Corporate and local levels and focuseson the implementation of the following strategicareas: Compliance with the social aspects of ourCorporate Business Principles, relevant international labour commitments and this Policy. Promotion of the Nestlé Corporate BusinessPrinciples, the Nestlé Management andLeadership Principles and the Nestlé Code ofBusiness Conduct. Enhancement of collective dialogue andnegotiations with employee unions and otherrepresentatives’ associations. Development and upholding of an opendialogue with external stakeholders on labourmatters.The implementation of the Policy is a joint efforton two levels: at Corporate level to set directionand to give guidance to local operations to liveup to this framework; and at local level to take allnecessary actions to implement the Policy.Local management must ensure collaborationand consistency between all Nestlé Businessesin the country as well as to enforce Nestlé groupprinciples, policies and standards.Employee relations remain a clear responsibilityof the local management. Therefore, they will behandled at the appropriate level: first at site level(factories, warehouse, etc.) and subsequently atnational level, according to law and practices.4. Corporate cultureOur commitment to long-term collective relationships with our employees is guided by theimplementation of a set of Principles which havegoverned our Company since its foundation. Wewill therefore continually seek to improve ouremployees’ knowledge, understanding and engagement with our Corporate Business Principles.Worldwide our Corporate Business Principlesare available in the local language of eachlocation in which we operate and are explained toemployees as efficiently as possible.2The Nestlé Employee Relations Policy

5. Corporate labour prioritiesNestlé promotes a continuous improvement of theworking conditions, giving special attention to thefollowing Corporate labour priorities: Respect the right of our employees to establishand join organizations of their own choosingand engage in constructive negotiations. Offer competitive wages and benefits that allowour employees to cover their needs accordingto local standards of living. Respect Corporate guidelines regarding“temporary employees” based on whichtemporary staff shall only be used incircumstances where it is justified by thetemporary nature of the job and will not resultin unjustifiable differences in employmentconditions. Respect Corporate guidelines regarding“outsourced activities” which indicate thatonly those activities which are non-core tothe business may be outsourced and that thepeople performing them will be treated fairly atall times. Implement the Corporate guidelines regardingworking time for our employees to assure asafe and healthy workplace and a workingenvironment respectful of their family lives. Treat every employee with dignity and withoutany tolerance for discrimination, harassment orabuse.6. ComplianceOur operations in each country shall take allnecessary steps and put mechanisms in placein order to ensure compliance of its employeeswith the Nestlé Corporate Business Principles, theNestlé Code of Business Conduct and this Policy.One important tool is the Nestlé CAREprogramme which verifies, through independentauditors, that Nestlé operations comply with thisPolicy and the social and environmental aspectsof the Nestlé Corporate Business Principles and oflocal legislation.The Nestlé Employee Relations PolicyAccording to the Nestlé Code of BusinessConduct, all employees shall report cases ofnon-compliance with the Code, which have to beproperly investigated. Local management shallprovide the procedures and establish mechanismsto manage the complaints that may be made,where appropriate, on a confidential basis.Nestlé prohibits retaliation against anyemployee or employee representatives for theexercise of the right to complain within therespective national or local legal framework.3

7. Collective dialogueWe ensure that direct and frequent communication is established at the workplace betweenmanagement and our employees, both unionmembers and non-union members. While dialogue with trade unions is essential, it does notreplace the close relationship that our management shall maintain with our employees.Regular dialogue with our employees andunion representatives creates an opportunity todiscuss matters of mutual concern and allowsour employees to acquire a full understanding ofthe business activities and the objectives of theCompany.In the spirit of continuous improvement, weencourage dialogue with our employees thatgoes beyond the traditional aspects of collectivebargaining in order to share knowledge and tofind jointly opportunities related to other importantmatters such as the health and safety at theworkplace and our concern for the environment.VNestlé favours a policy of long-termemployment. In the case that the closure oralienation of a Nestlé operation is necessary, itwill be handled with full respect to applicablelegislation and our Corporate BusinessPrinciples. In such cases, employees and theirrepresentatives shall be informed within areasonable timeframe and a social plan will beelaborated, taking into account the legitimaterights and interests of all concerned.8. Collective negotiationsNestlé upholds the freedom of association of itsemployees and the effective recognition of theright to collectively bargain.When collective negotiations take place, they will: be established within the legal framework ofeach country; be fair and constructive, based on the principleof good faith and an open exchange ofinformation; relate to relevant working conditions suchas wages, benefits and the exercise of unionactivities; focus on meeting common interests to improvefurther our competitive advantage such as theworkplace environment.The Company and employee representatives areexpected to make all necessary efforts to developfair and constructive negotiations, overcome thedifficulties that they might encounter, reach sustainable agreements and implement them.4The Nestlé Employee Relations Policy

9. External open social dialogueNestlé continuously seeks areas of dialogue, discussion and mutual understanding at all levelsof its operations. This includes communities andauthorities as well as local and international stakeholders representing employees and unions suchas the International Union of Food Workers (IUF)and the Nestlé European Council for Informationand Consultation (NECIC). In doing so, we enrichour knowledge of social realities, we share ourvision and efforts for sustainable growth, and weconstantly aim to find opportunities to improveour practices.At local level there should be a sustained effortto reach out to external experts such as the localILO office, OECD National Contact Point, employerorganizations, business associations, etc., in orderto be informed about relevant market trends andexchange views on labour-related issues.The Nestlé Employee Relations Policy5

The Employee Relations policy not only requires strict compliance with the law, but it guides our actions even if the law is more lenient or where there is no applicable law at all. The present Policy replaces the Nestlé Industrial Relations Policy issued in 2000. The Nestlé Employee Relations Policy 1File Size: 2MB