Maintenance Hiring, Retention and Training. August 16,

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2 Maintenance Hiring, Retention and Training August 16,

3 2 Million unfilled jobs

4 Also #1 Globally

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11 Sonoco Current Situation Aging workforce Average age for all hourly employees is 44 Average age for hourly skilled maintenance employees is 47 29% of the current hourly skilled population is 55 years old or older That equates to 240 employees

12 Maintenance Hiring, Training and Retention Mission Statement To provide our Maintenance Departments with highly capable, multi-skilled, reliability focused talent (hiring) that can adapt seamlessly to changing technology and reliability improvements (training) and has the dedication to and ownership of Sonoco s success to stay with us long term (retention).

13 Maintenance Hiring, Training and Retention???

14 Maintenance Hiring, Training and Retention With a Corporate ME structure built, this is our opportunity to re-position/re-brand our Maintenance Departments to stay viable with reliability efforts, new technology, and our next generation of workers. Hire and retain Plant Engineers as leaders for our Maintenance and Reliability Departments Hire and train Multi-Craft Maintenance Associates that are experts in: Mechanical Systems Electrical Systems Electronic Controls Robotics Reliability Create strong funnels to feed Maintenance positions Wage Analysis process that ensure we are paying for skills and comparable in area Standardize across divisions on all of the above to keep it simple and less confusing

15 Plant Engineer job title New Maintenance Leadership job description and title created to better reflect expectations Plant Engineer A communication package was created for each incumbent New job description Explanation about Gap Analysis which will be incorporated into their 2017 PM Incumbent s direct supervisor will complete the Gap Analysis and share with the Reg HR Manager and ME Champion for input. The RHRM and ME Champion will decide if they want to be involved in the verbal discussion with the incumbent when gap analysis is presented New recruiting videos created for external and internal Plant Engineer candidates Maintenance Supervisor Plant Engineer

16 Vision Career Opportunities for the Plant Engineer ME Champion SPS Specialist Process Improvement Leader Plant Engineer Plant Manager Divisional or Corporate Engineering Superintendent Reliability Engineer

17 Maintenance Hiring, Training and Retention Multi-craft Maintenance Associates Benefits: Less downtime or non-value added time in waiting for skilled craft to arrive on the job everyone is skilled in all facets Trained in the future of manufacturing automation/robotics Standardization to one multi-craft maintenance hourly job title that reflects the true job function (reliability centered maintenance) Polling technical schools across the country to identify what title students would be more attracted to. So far: Industrial Maintenance Reliability Technician (leaning toward Maintenance Reliability Tech for short) Plant Maintenance Reliability Technician Mechatronic

18 Future State Hourly Maintenance Master Craftsman Master Mechanic Class B Mechanic Lead Tech Mechanic Preventive Maintenance Mechanic Step 1: Work to migrate all current job titles and functions throughout the company to one job title with multi-craft responsibility. Electromechanic

19 Maintenance Hiring, Training and Retention Why Apprenticeships? From the US Department of Commerce study titled: The Benefits and Costs of Apprenticeship: A Business Perspective November 2016 If our country is to out-compete and continue to lead the rest of the world, we must prepare our workforce for the jobs of the 21 st century. Yet in meeting more than 2,000 CEO s as Secretary of Commerce, the one challenge I hear over and over again is difficulty finding skilled workers.

20 Maintenance Hiring, Training and Retention Why Apprenticeships? Skilled Trade Workers are the number one talent shortage; 75% of manufacturers report a moderate to severe shortage Equipment is more advanced, however there is significantly less individuals going into these skilled trades 80% of companies who invest in apprentices report a significant increase in employee retention Employers are investing in apprenticeship through technical schools and state assisted programs to combat the shortage and projected shortage of employees. Long term solution rather than short term reaction

21 Maintenance Hiring, Training and Retention Cost/Benefit of Apprenticeships

22 Maintenance Hiring, Training and Retention Cost/Benefit of Apprenticeships

23 Costs Teri Luther Apprenticeship Carolina Tuition: $11,022 -Financial Aid: $10,460 Total Cost: $562 (full financial aid assistance) Apprenticeship Tax Credit for 4 year apprenticeship: $4,000 $3,438 credit to Sonoco for having apprenticeship program Salary Approx. $15,000 for part time work This is for the state of South Carolina. We receive grants based on the number of colleges where we partner ie. Florence Darlington Tech, Piedmont Community College

24 Maintenance Hiring, Training and Retention Apprenticeships & Technical School Partnerships

25 Maintenance Hiring, Training and Retention Apprenticeships & Technical School Partnerships Tennessee

26 Maintenance Hiring, Training and Retention Apprenticeships & Technical School Partnerships South Carolina

27 Maintenance Hiring, Training and Retention Apprenticeships & Technical School Partnerships North Carolina

28 Maintenance Hiring, Training and Retention Apprenticeships & Technical School Partnerships Utilize our tremendous Technical School Resources in all of our Hourly Hiring, Training and Retention needs!

29 Professional Certification Apprentice Program Evolving matrix for identifying apprentices. Early trials in key locations will drive a more formal document.

30 Youth Apprentice Program Officially change our work policy to allow folks 16 and above (rising High School Juniors and Seniors) to work in Production areas OSHA has developed a list of rules for these apprentices to follow Selection Process: Plants to work with local High School Guidance Counselors and Career Centers to identify prospective students to go into this program Support from center to develop program and identify contacts at local schools Pay - $10 - $12/hour

31 Professional Apprenticeship Benefits 100% Paid Schooling Valuable paid On the Job training DOL Journeyman s certificate upon completion of Apprenticeship Opportunity to move into a Full-Time Maintenance Department Position Youth Apprenticeship Benefits Valuable paid On the Job training May be able to count as school credit Opportunity to move into Professional Apprenticeship upon High School graduation

32 Maintenance Hiring, Training and Retention Apprenticeship Program Leadership Internal Talent Prospects Technical School Talent Professional Certifications Youth High School Talent

33 Future State of Maintenance Maintenance Hiring, Training and Retention Plant Engineer Youth Apprenticeship

34 Maintenance Hiring, Training and Retention Marketing/Branding Corporate Communications has branded our Apprenticeship Program

35 Maintenance Hiring, Training and Retention Marketing/Branding Other marketing & branding efforts: Career Fairs developing process to mimic Emerging Leader s Career Fairs News Release once 1 st Apprentice is in place Apprenticeship Carolina and local Career Centers have plans to publicize our programs

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37 Sonoco Professional Apprentice Pinckney Plant, Union, SC Sonoco Plastics Jay Vaughan Apprentice attending Spartanburg Community College seeking a degree in Mechatronics. He will work part-time with Sonoco to learn valuable on the job skills while pursuing his degree. Shown here from left to right Joseph Milczewski Plant Engineer Jay Vaughan Industrial Maintenance Reliability Tech Apprentice Steve Malott Plant Manager Jay Vaughan signing DOL and Sonoco Apprenticeship Agreements

38 Sonoco Professional Apprentice Chillicothe, Mo Plastics Division Gary Bellis, Maintenance Manager Anthony Sayers, Apprentice Mario Midgyett, Apprentice Bob Buchanan, Plant Manager

39 Sonoco Professional Apprentice Newport Paper Mill, Newport, TN Paper Division Isaiah Ivy Been with Sonoco for 5 years and worked his way up to Winder Operator. Isaiah has wanted to be a part of the maintenance department in Newport since he was hired. The apprenticeship program will now give him this opportunity! He will attend the Tennessee College of Applied Technology to be trained in Industrial Maintenance both mechanical and electrical. Shown here from left to right Mark Swann Plant Engineer Isaiah Ivy Industrial Maintenance Reliability Tech Apprentice Shawn McIntosh Plant Manager Isaiah Ivy

40 Sonoco Youth Apprentice Hartsville Adhesives, Hartsville, SC Adhesives Division Parker Kirven is a High School Senior at West Florence High School in Florence, SC. Parker is interested in going to a technical school upon graduation to receive a degree in Industrial Maintenance. Parker is working alongside our maintenance folks in Hartsville Adhesives to get a better understanding of practical applications for his field of study. He is gaining valuable, handson work experience prior to going to technical school while getting paid! Shown here from left to right Parker Kirven Industrial Maintenance Reliability Tech Youth Apprentice Stephen Barefoot Hartsville Adhesives Maintenance Leader and Apprentice On the Job Trainer

41 New Funding Corporate Funding for 30 additional Apprentices Allocation of Corporate Apprentices to Divisions Criteria considered: 1. Projected retirements in next 5 years 2. Divisional growth/consolidation plans 3. Strong divisional ME leader to ensure success of program Allocation of Corporate Apprentices to Plant Locations Criteria considered: 1. Strong Tier 1 locations 2. Strong On-the-Job Trainer identified 3. Strong Plant Leadership 4. Major difficulty in area finding candidates

42 Military Professionals Group Don Livingston & Erica Ballenger

43 2018 Events Completed Orion International Educational Events Communication Techniques Corporate Communication Invite Invites to VPs, GMs, Area Managers, Director of Manufacturing and HR team Talent Acquisition team notified managers directly 1 onsite training within Hartsville - 30 attendees 3 webinar events April 19 th 20 single attendees April 26 th 12 single attendees May 17 th 17 single attendees Plants did include multiple individuals within one conference room

44 Maintenance Hiring, Training and Retention Testing Criteria Marketing & Advertising Apprenticeships Soft Skills Technical School Partnerships Ownership & Dedication Technology Specific Standardized OJT Trainers Wages Opportunities to Advance Continued Education

45 Maintenance Hiring, Training and Retention We ve got to get out of the mentality of we can t find the right folks to go into these roles. We ve got to grow these folks to go into these roles.

46 Maintenance Hiring, Training and Retention Questions?