Employees

Our approach

During 2006 we continued the process of restructuring our business to improve competitiveness and support our growth strategy. The new structure is simpler and supports faster decision-making through a streamlined executive. Since 2004, we have reduced our senior management headcount by around 30%.

As a result of this restructuring and further divestments, the number of people we employed fell by around 27 000, a reduction of 13%. The sale of our tea plantations in India accounted for 18 000 of these, and the sale of the majority of our frozen foods business in Europe for a further 3 000.

In 2006 we also signed a seven-year outsourcing contract with Accenture to handle all transaction processing and administration support services for our human resources function.

In implementing our restructuring programmes we seek to act with integrity and follow agreed consultation processes. We aim to treat those affected fairly – and help them to find alternative employment if redundancy is necessary. From employee consultation, we recognise that this level of organisational change is a source of concern. We take these concerns seriously and throughout the process we communicate regularly to ensure that people understand what is happening.

Diversity & inclusion

Between 2000 and 2006, the proportion of women in management increased from 25% to 33%. We have 24 nationalities among our 123 most senior managers. In 2006 our Global Diversity Board, led by our Group Chief Executive, set up detailed diversity monitoring to track the progress of our diversity initiatives.

Health & safety

Our goal is the elimination of all employee and contractor fatalities with continual improvements in overall health and safety performance. Our internal global health and safety standards are based on the international standard OHSAS 18001.

Our total recordable accident frequency rate fell from 0.39 in 2005 to 0.33 in 2006. However, most regrettably, five employees and two contractors lost their lives. All employee fatalities resulted from car accidents. The lessons learnt from these incidents were communicated throughout the organisation.

Safe travel and transport therefore remain a priority area. The greatest challenge we face is in countries that lack basic road safety infrastructure and enforcement. During 2006, Safe Driving Teams were set up in our local companies. Led by a senior manager, these teams are now implementing country specific action plans.

Fatal accidents* 1996–2006

Accident rate** 1996–2006

Accident Frequency Rate (AFR) – Workplace accidents resulting in time off work or some temporary restriction in the work that the injured person can undertake.

Total Recordable Frequency Rates (TRFR) – All workplace accidents, excluding only those that require simple first aid treatment.

Investing in people

In line with our new business priorities, in 2006 we continued to strengthen the capabilities of our leadership teams and those working in consumer marketing and customer development. For example, the marketing function ran nearly 500 training sessions in 2006 covering around 40% of people in marketing. A new global approach to learning was designed to develop general leadership and professional skills, which we will roll out to all managers during 2007.

In 2006 we also introduced our People Vitality programme to enhance the personal well-being and effectiveness of our people at work. Hindustan Lever initiated a programme which assesses employees' body mass, blood pressure, cholesterol and blood sugar levels. It also provides nutrition, health and exercise advice. Over 10 000 employees have taken part so far, and each will be followed up annually.

Several leadership teams – including the Unilever Executive – also took part in a well-being programme. Each received an individual health check, which was then used to design a personal plan to improve their nutrition, fitness and mental resilience.

Action on HIV/AIDS

We have long-standing HIV/AIDS support programmes in sub-Saharan Africa, and in 2006 our Kericho tea estate in Kenya won the Excellence in the Workplace award from the Global Business Coalition on HIV/AIDS. Building on our work in Africa, we have implemented a more comprehensive approach to programme development in other regions too, with a particular focus on a number of Asian countries.

In September 2006, following a successful 12-month pilot of a scheme involving Unilever and four other multinationals, the World Economic Forum published its 'Guidelines to Protect your Supply Chain', outlining ways for businesses to work with smaller suppliers on awareness of HIV/AIDS prevention and treatment.

Living our values

Each year, country chairmen provide positive assurance that their business adheres to our Code of Business Principles. The Code provides a clear set of ethical guidelines to enable employees to uphold our business integrity. Our prohibition against the giving or receiving of bribes is absolute. Moreover, we make clear that no employee will be penalised for any loss of business resulting from the rejection of bribery. The Code is communicated to all employees and translated into 47 languages, with processes in place to raise concerns and report breaches. In 2006, we dismissed 68 people (compared to 66 in 2005) for breaches of our Code.

We abide by core ILO labour standards and our Code sets out requirements on protecting labour rights. In 2006 we surveyed our 35 largest businesses which showed that our youngest employees, aged 15, are in Germany, Switzerland and the US, compliant with local legislation.

In all these countries, wages paid by Unilever exceed the minimum wage established by the relevant national authority. 40% of our eligible employees are members of trade unions.

Age of youngest employees 2006

Based on our 35 largest businesses.

* In addition to the recordable fatality data in the chart, where such accidents may be deemed associated with our operations, Unilever requires its organisations to report fatal accidents involving members of the public, and those which occur at third-party contract manufacturers where they are producing goods and services for Unilever.

In common with the other companies in our industrial sector, these incidents are only reportable internally.

** In line with industry best practice, we include in our definition of an 'employee', temporary staff and contractors who work under our direct supervision.