Social performance indicators

LA1 Total workforce by employment type, employment contract and region

At the end of 2014, Lemminkäinen employed an average of 4,748 experts (5,526) in 8 countries. 49% of Lemminkäinen employees worked in Finland.

Personnel, 31 Dec

1011121314
Personnel5,2345,7515,8335,5264,748

Personnel by market area, 31 Dec

Finland 49% (49%) 49
Sweden, Norway, Denmark 24% (23%) 24
Baltic countries 14% (13%) 14
Russia 13% (14%) 13
Other countries 0% (1%) 0
 

Personnel by segment, 31 Dec

Infrastructure construction 62% (59%) 62
Building construction, Finland 22% (22%) 22
Russian operations 13% (14%) 13
Parent company 3% (5%) 3

Personnel by employment group, 31 Dec

Blue-collars 56% (56%) 56
White-collars 44% (44%) 44
 

Age distribution, Finland, 31 Dec

<= 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 63> 63
20122313639139334736950649645120834
20131310036440135035245749546122034
201467629039530129341443839421228
 

Permanent and temporary employment, Finland, 31 Dec, %

13 14
Permanent 96 97
Temporary 4 3

Full-time and part-time employment, Finland, 31 Dec, %

13 14
Full-time 98 98
Part-time 2 2
 

 

 

LA2 Total number and rate of employee turnover by age group, gender and region

Personnel turnover, Finland, permanent employees


2014 2013 2012
Personnel turnover (outgoing), %:


Employments ended / number of personnel at 31 Dec. 20.5 12.6 12.0
Personnel turnover (ingoing), %:


Employments began / number of personnel at 31 Dec. 5.2 10.1 7.5
Average personnel turnover, %:


Employments ended and began / 2 / number of personnel at 31 Dec. 12.8 11.3 9.8




Reason for departure (permanent personnel) by category, %


Due to retirement 12.0 12.0 14.0
At own request 33.0 44.0 52.0
Employer ended 54.0 44.0 33.0
Due to death 1.0 1.0 0.5

Due to the seasonal nature of our business, the number of our employees varies monthly and is at its lowest level at the end of the year.

LA4 Coverage of collective bargaining agreements

Lemminkäinen’s employment contracts comply with current labour legislation in each operating country.

In 2014, all of our blue collar and white collar workers in Finland – over 87% of the Finnish personnel – were covered by collective labour agreements. No collective labour agreements, nor any other collective agreements, have been agreed on with senior white collar workers and management.

LA5 Minimum notice period regarding operational changes

In all of its operating countries, Lemminkäinen applies a period of notice equal to at least the minimum required by labour legislation in each operating country and by collective labour agreements. Minimum periods of notice vary depending on the employees’ collective agreements and the length of time they have worked for Lemminkäinen.

LA6 Percentage of employees represented in joint health and safety committees

In Finland, occupational safety and health committees enable Lemminkäinen’s employees to have a say in issues related to safety and health care in their workplace. 100% of Lemminkäinen’s employees are represented in the committees. A joint meeting of all occupational safety and health committee representatives of the Group’s Finnish companies is held once a year.

LA7 Rates of injury, occupational diseases, lost days, fatalities and absenteeism

Absence due to accident, %, Finland


2014 2013 2012 2011
All personnel 0.17 0.28 0.23 0.26
White-collars 0.02 0.02 0.08 0.02
Blue-collars 0.28 0.49 0.36 0.43
Corporate functions 0.01 0.04 0.03 0.01
Building construction 0.18 0.40 0.34 0.32
Infrastructure construction 0.18 0.23 0.17 0.25

 

Accident frequency rate


2014 2013 2012 2011
Lemminkäinen Group*) 6.9 10.5 13.6 n/a
Lemminkäinen’s domestic operations 10.6 22.6 26.9 34.6
Corporate functions 0 0 3.9 0
Building construction 11.0 19.1 33.1 34.3
Infrastructure construction 10.4 14.4 18.4 17.4
Fatal accidents 1 0 1 0
International operations*) 4.0 5.3 5.1 n/a

Accident frequency rate: the number of accidents resulting in an absence of more than one day per million working hours. Includes own staff.

*) Operations in Russia were not included in 2012 reports.

 

Absence due to sickness, %, Finland


2014 2013 2012 2011
All personnel 2.56 2.67 2.72 2.98
White-collars 1.63 1.42 1.63 1.69
Blue-collars 3.29 3.67 3.59 3.92
Corporate functions 2.38 2.32 2.64 2.41
Building construction 2.87 3.01 3.01 3.31
Infrastructure construction 2.36 2.44 2.47 2.73

LA8 Education and prevention programmes regarding serious diseases

Lemminkäinen believes that the best results can be achieved with a combination of the early support model, professional rehabilitation and occupational healthcare. Through regular monitoring, the company evaluates the risks associated with the personnel’s working capacity and implements preventive measures in the required areas. Lemminkäinen conducts a Sante health survey as part of health check-ups and comprehensive occupational healthcare. According to the survey, the personnel’s greatest health risks are excess weight, diabetes, sleeping disorders, alcohol and smoking. The most common symptom predicting work disability is musculoskeletal disorders. Lemminkäinen’s occupational healthcare unit supports the solving of health problems either individually or in groups.

In 2014, Lemminkäinen launched three new ASLAK groups for employees in Finland. ASLAK is the Social Insurance Institute of Finland’s early rehabilitation for minor health problems.

Lemminkäinen supports its personnel’s leisure-time exercise in many ways. For example, in Finland the company offers all of its personnel an exercise card that can be used at approximately 850 sports facilities around Finland.

LA11 Programmes for skills management and lifelong learning

As part of the Deliver 2014 cost-saving programme, Lemminkäinen focused its personnel development efforts on statutory competence training as well as on training that supports specific needs.

In 2014, Lemminkäinen started the Code of Conduct online training that is mandatory for the entire personnel. By the end of the year, more than 4,000 Lemminkäinen employees had completed the training.

Read more about our way of working.

In Finland, the PAKKI training programme promotes occupational safety and skills that ensure top-quality results through so-called mandatory competence training. A total of 1,674 (926*) people completed PAKKI courses in 2014.

The Lemminkäinen supervisor academy LEKA supports supervisors in implementing Lemminkäinen’s strategy. In 2014, a total of 25 (86*) people took part in the LEKA training, focusing on project management.

The VIILA programme supplements LEKA training. VIILA courses were organised on competition law and the supervision of the contractor’s interests (General Conditions for Building Contracts YSE), among other topics, and a total of 284 (287*) people took part in them in Finland in 2014. In addition, Lemminkäinen organised, when necessary, training on topics such as ICT and access control systems changes.

*The training figures for 2013 include the personnel of the Technical building services business divested in 2014.

LA12 Employees receiving regular performance and career development reviews

Target setting and performance discussions are an important management tool for Lemminkäinen. They help the company to set personal and team targets, monitor the achievement of these goals, and evaluate the personnel’s development needs.

In 2014, approximately 70 per cent of Lemminkäinen employees had a target setting and performance discussion. The goal is for each Lemminkäinen employee to have an annual target setting and performance discussion.

Read more about target setting.

LA13 Composition of governance bodies and breakdown of employees

Lemminkäinen’s Code of Conduct requires its personnel to be treated equally. Lemminkäinen does not condone any form of discrimination on the basis of race, religion, political beliefs, gender, age, nationality, language or sexual orientation.

The company follows the realisation of equality with an employee survey every other year. The next survey will be conducted in 2015.

In addition, Lemminkäinen has a separate equality action plan as well as guidelines to identify and prevent workplace bullying in Finland. The equality action plan promotes a diverse personnel structure, salary consistency, the suitability of working conditions for the entire personnel and equal opportunities for career development, among other things.

In 2014, Lemminkäinen’s Board of Directors had six members of which two, 33.3%, were women. At the end of 2014, the Group’s Executive Team had six members of which two, 33.3%, were women.

Gender distribution, Finland 31 Dec 2014

Male 86%86
Female 14%14

 

 

HR2 Suppliers and contractors that have undergone human rights screening and actions taken

Lemminkäinen requires all of its suppliers and partners to comply with legislation and international regulations concerning human rights, employment rights and the environment, as well as its Code of Conduct.

Lemminkäinen audits its suppliers when the company wants to ensure the performance of a potential major supplier or when the company wants to identify areas for development with current suppliers. In 2014, the company audited five suppliers.

HR5 Operations identified in which the right to exercise the freedom of association or collective bargaining may be at significant risk and actions taken to support these rights

Lemminkäinen has not identified operations nor significant suppliers where the right to exercise the freedom of association or collective bargaining would be at significant risk.

HR6 Operations identified as having significant risk of child labour and measures taken to contribute to the elimination of child labour

Lemminkäinen has not identified operations nor significant suppliers which involve significant risks of child labour.

HR7 Operations identified as having significant risk of forced or compulsory labour and measures taken to contribute to the elimination of forced or compulsory labour

Lemminkäinen has not identified operations nor significant suppliers which involve significant risks of forced labour.

SO4 Actions taken in response to incidents of corruption

Lemminkäinen’s Code of Conduct prohibits corruption. In 2014, Lemminkäinen started the Code of Conduct online training that is mandatory for the entire personnel. The goal of the training programme is to ensure that Lemminkäinen’s employees know how to apply the Code of Conduct in practice and how to act in conflict situations.

In 2014, no incidents of corruption were detected at Lemminkäinen.

SO5 Public policy positions and participation in public policy development and lobbying

Lemminkäinen exercises political influence through the industry’s advocacy groups. In Finland, Lemminkäinen actively participates in the Confederation of Finnish Construction Industries RT and other associations that represent its industry, such as Infra ry and the Building Construction Association. Lemminkäinen is also involved with corresponding associations in other operating countries.

SO6 Contributions to political parties, politicians and related institutions

Lemminkäinen does not donate money to political parties or activities, religious organisations, authorities, municipalities, or local administrations.

SO7 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

On 28 November 2013, the District Court of Helsinki issued its decisions concerning damages related to the asphalt cartel. In line with the decisions, Lemminkäinen recorded approximately EUR 66 million in expenses in its 2013 result. Of this, approximately EUR 60 million consisted of damages ordered only to Lemminkäinen, Lemminkäinen’s share of the damages ordered to it and other asphalt industry companies to be paid jointly and severally, as well as interest and legal expenses related to the damages. This amount was paid by the company in January 2014.

Lemminkäinen has appealed against all 35 decisions, where the plaintiffs’ claims were partly upheld, to the Helsinki Court of Appeal. In Lemminkäinen’s opinion, there are some judicial aspects in the decisions of the District Court, where the conclusions of the District Court differ from previous legal practices. Such judicial aspects are related to the questions of prescriptions and value added tax, for example. The main oral hearing in the Court of Appeal will take place during 2015. The Finnish state and 22 municipalities have also submitted their appeals to the Helsinki Court of Appeal.

In addition to the claims which the Helsinki District Court has decided on in November 2013, Lemminkäinen has been served summons regarding 21 claims against Lemminkäinen and other asphalt companies for damages. The capital amount of these claims is approximately EUR 26 million. For these claims, Lemminkäinen has made a provision worth EUR 12.3 million by the end of 2014.

SO8 Significant fines and sanctions for non-compliance with laws and regulations

In 2014, Lemminkäinen received no significant fines or other sanctions.

PR5 Practices related to customer satisfaction and results of customer satisfaction surveys

Lemminkäinen tracks its customer satisfaction with the international NPS (Net Promoter Score) customer satisfaction survey. In 2014, the survey was not conducted due to the Deliver 2014 cost-saving programme. The company will conduct a customer satisfaction survey in 2015.

PR6 Adherence to laws, standards and voluntary codes related to marketing communications, advertising, promotion and sponsorship

In 2014, in addition to meeting with the customers, Lemminkäinen also kept them informed about current issues through the customer magazine and newsletters. The company's advertising focuses on creating recognition of the range of solutions and services, and it complies with the International Chamber of Commerce ICC guidelines.

 
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