The Etileno XXI megaproject experience

Transcription

1 The Etileno XXI megaproject experience Managing Workforce Demobilization & Building Livelihoods Achieving excellence beyond international best practices May 25 th, 2016

2 01 Etileno XXI specific requirements Main objective and challenges Main Objective To comply with the EPC contract s terms and conditions, at a minimum costs, and targeting zero accidents at the construction site. Maximize productivity Zero accidents Ensure corporate security Main Challenge How to conduct a greenfield megaproject, in a complex site and region, complying with strict KPIs; and, all the while, guaranteeing that the Odebrecht Group philosophy be instilled in the job-site from the very day its foundations were laid. Adequate and sufficient workforce Local environment Compliance with strict KPIs Odebrecht group institutional values

3 02 Human Resources Management Model Prioritized professional development and mechanisms to encourage employees loyalty Human Resources Management Model Objectives Ensure employee loyalty Prioritize employees long-term professional development Guarantee equal opportunities in employment Promote local development Cross-cutting principle Capitalize upon Odebrecht s vast experience and corporate philosophy to elevate international principles and standards Demobilization Challenge Massive demobilization : 17,000 people in one year (Jan/15 to Feb/16). Potential risks associated with the demobilization process: Negative economic and social impact on the community; Increase in the lawsuit rate; Conflictive relationship with the Union; and Damage to the project s image.

4 03 New Opportunities program Managing the demobilization process starts at pre-employment Planning Pre-employment Employment Post-employment Recruitment Selection Hiring Induction Training Employee development Demobilization Employment liaison Sense of belonging among employees from entrance; National recruitment strategy requiring the establishment of six foreign offices nationwide; and Explanation of the terms and conditions of employment. Monitoring of working conditions Certified training for all employees; Ensure employee loyalty by offering attractive benefits packages; and Group of allied companies to monitor the construction Mexican market. New Opportunities Program; and Enlace. Three main strategies of New Opportunities and Enlace: Post-employment job search strategy Design of a New Opportunities Program: Explanation of the process to the employee; Reception of a personalized demobilization kit; Signature of legal documents with the participation of the local Conciliation and Arbitration Board; Update information at the national employment service database (alliance with government); and Interview with potential employers Enlace Program. External relationship strategy Internal communicational campaign To mitigate the potential influence of the Union and the local media and to reduce the risk of negative publicity. To generate a positive sense of belonging among the employees with the Company.

5 04 The Enlace program Linking demobilized employees with existing vacancies at other construction companies Enlace Activities Alliances with companies nationwide; Companies were provided with office space; and Potential employers interviewed demobilized employees. Value Offered Employees with acquired extensive professional training and high quality safety standards nd high quality safety standards. Demobilized people: 10,685 Enlace: 6,694 Allied companies: 15 (local and out-of-town) Demobilization workshops: 38 2,500 2,000 Enlace in numbers People 1,500 1, Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Monthly Demobilizations Monthly Hiring Monthly Participation in Enlace

6 05 The HR Management Model results The demobilization outstanding result started at the pre-employment phase 1.4% 8.4% 15 allied companies in Enlace Etileno XXI Industry Low lawsuit rate Half of the 6,694 participants in Enlace got a job offer 90% Of past employees that were called back accepted new opportunities at the plant site. If they were to ask me: Would you come back to work here? I wouldn t think about it twice. This is obviously a good company, it has very good benefits but, most of all, the working environment is excellent. (Former employee)

7 06 Lessons learned Could be applied for other projects It makes perfect business sense to invest in people, promoting employee loyalty, that will contribute to corporate security, maximizing productivity and targeting zero accidents. This will allow the company to achieve corporate objectives and set higher standards for the industry. Taking care of people, providing training and working conditions will ensure employees commitment to the success of the project and will make them attractive for the job market, all of which will be translated into a positive image of the company. Considering that employment in the construction industry is cyclical, ensuring that employees are provided with all tools and training and putting them in contact with potential employers when the demobilization period comes, will show the true concern that the company has with them, and this will bring them back when another construction project starts.

8 The Etileno XXI megaproject experience Managing Workforce Demobilization & Building Livelihoods Achieving excellence beyond international best practices. May 25 th, 2016 Contact: Paulo Levita, Administrative and Finance Director Odebrecht Engineering and Construction International Industrial Engineering