Vale Europe Ltd. Gender Pay Gap Report 2017

Transcription

1 Vale Europe Ltd. Gender Pay Gap Report 2017

2 Introduction to Vale With a mission to transform natural resources into prosperity and sustainable development, Vale is a global mining company with headquarters in Brazil. We are leaders in the production of iron ore and nickel, employing a global workforce of around 110,000 people. Our mining operations, research facilities, projects and offices extend across five continents. Vale conducts its business activities guided by a set of values that reflect high ethical and moral standards, aimed at assuring credibility and preserving the company s image in the markets in which it regularly operates in the short and long term. These values are: Life matters most Prize our planet Do what is right Value our people Improve together Make it happen 1

3 Strategic Pillars Our strategic pillars are aligned with the reality of the mining industry and they contribute to the achievement of our Vision. Take care of our people Seek zero accidents, develop a team of professionals who are trained and accountable for their decisions, and be a great place to work, with motivated people, development opportunities and quality of life. Embed sustainability into our business Build economic, social and environmental legacies in the regions where we are present, mitigating the impacts of our operations on adjacent communities and promoting sustainable practices throughout our value chain. In addition, secure our licence to operate through integrated action, dialogue and transparency with our stakeholders. Manage our portfolio with discipline and efficiency Be austere in our use of financial resources, focus on high-profitability assets, and attract partners to boost growth and manage risks. Focus on iron ore Reinforce our leadership in iron ore by increasing the supply and quality of our products without raising costs, thereby recovering our market share. Grow through world-class assets Emphasize value creation over additional volume, focusing on competitive assets and projects that have scale, are expandable and can sustain multiple economic cycles in iron ore, nickel, copper and metallurgical coal. 2

4 Vale Europe Ltd. Vale Europe Ltd. is part of Vale s Base Metals business and has two refineries in the UK: Clydach Refinery Based near Swansea, South Wales, Clydach Refinery is one of Europe s largest nickel refineries. We have been producing high-purity nickel pellet and powder products for specialist applications, such as high nickel alloys, batteries, nickel plating and automotive components, for over a hundred years. In operation since 1902, the factory produces around 40,000 metric tons of nickel products per year and supplies around 280 clients in over 30 countries across the world (in Europe, Asia and the US). In 2014, the Clydach Refinery received a Shingo Silver Medallion for Operational Excellence, dubbed the Nobel Prize of manufacturing by the North-American magazine Business Week. Acton Refinery Located in the heart of London, Acton Refinery is a world-class Platinum Group Metals (PGM) Refinery, with 1.5 M troy oz. capacity. Here, we refine both PGM concentrates from Vale s Canadian operations as well as third-party materials. 3

5 Accuracy Statement April, 2018 I confirm the gender pay gap data contained in this report is accurate and has been prepared according to the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, which require companies with more than 250 employees to publish information on their gender pay gap. The figures are taken from employee data as of the snapshot date of April 5, In line with requirements, we are publishing results within 12 months of the snapshot date. Included in the calculation of hourly pay for the purposes of this report is basic pay and allowances such as shift and on-call allowances. Overtime is excluded. The Bonus Gender Pay Gap reflects all bonuses paid between 6 th April 2016 and 5 th April Sincerely, Michael Cox Head of UK and Asia Refineries Vale Europe Ltd. 4

6 Vale s Compensation Philosophy This is based on five pillars and aims to promote a high-performance culture in the organization. 1. Attraction and retention 2. Performance 3. Long-term view 4. Market 5. Financial structure Our Compensation Team oversees Vale s compensation philosophy and programs to ensure they are competitive, attractive, and aligned towards Vale s mission, vision and values. Gender Pay Gap Calculations The following numbers provide the gender pay gap information, as required by the regulations. This includes a summary of the percentage difference in mean and median pay of male and female employees and the hourly rate pay quartiles and proportion of males and females in each quartile. Key Findings Pay: Our analysis shows that: We have a male-dominated workforce of 85% male versus 15% female employees. Our female employees are typically more highly paid than men. We have a higher proportion of women in higher grade positions than men. Male 85% The majority are in operational positions, which are typically lower paid. Female 15% 72% are in technical or senior positions, which are typically higher paid. 21% of Vale workforce is composed of females in supervisory or management positions. Employees at 295 snapshot date: 5

7 Base pay: -10.6% -6.31% Gap between the mean hourly rate of pay of male full-time relevant employees and that of female full-time relevant employees. Median difference, showing that, on average, male employees have lower pay than female employees. Quartiles Male Female Lower 85.14% 14.86% Lower Middle 93.15% 6.85% Upper Middle 81.08% 18.92% Upper 81.08% 18.92% Bonus Vale s Annual Incentive Plan (AIP) is a variable compensation plan which aims to reward individuals and teams for meeting goals aligned with the company s budget, strategy, Mission, Vision and Values. The AIP is an important element of the Total Rewards package offered to employees. It aims to align employee rewards with company performance and shareholder experience, by providing the opportunity to share Vale s success. The AIP Cycle is based on the calendar year from 1 st January to 31 st December, inclusive. All employees in the UK are eligible for AIP, although the target that they receive varies according to the employee s pay grade % % Difference between the mean bonus pay paid to male relevant employees and that paid to female relevant employees during the reference period of 6 th April 2016 to 5 th April 2017 Median difference, showing that male employees received less bonus compensation than female employees during the reference period of 6 th April 2016 to 5 th April 2017 Percentage in receipt of bonus: % 100%

8 Vale is committed to establishing clear policies and our Code of Ethical Conduct demonstrates that we have no tolerance for discrimination or bias based on gender. Michael Cox, Head of UK and Asia Refineries Vale Europe Ltd. Addressing the Gap As an organization, we aim to ensure that our employees are treated fairly and in a nondiscriminatory manner during their employment with Vale Europe Ltd. The report has identified that, while our workforce is male dominated, female employees are typically paid more. We are, however, confident that this is due to the roles in which female employees are employed, and is not influenced by gender. The Vale Code of Ethical Conduct is one of the ways we put our value Do what is right into practice. Vale is taking concrete steps to reduce gender bias and discrimination through applying awareness and training and leading by example. We strive to ensure that our policies, practices and processes are fair and free from bias. This includes, but is not limited to, our pay practices and recruitment and selection processes. Examples of initiatives in place at Vale Europe Ltd.: Flexible working practices available to all employees Partnerships with local colleges for apprenticeships Collaboration with local schools and colleges to provide work experience Hosting of girls Into STEM Day, to encourage female students to study STEM subjects Job Evaluations and Pay Grading systems 7