UPM annual report 2014

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UPM Annual Report 2014 UPM Annual Report 2014 43 44
CONTENTS
STAKEHOLDERS 31–44
Female
20%
20%
21%
80%
80%
79%
97%
60%
60%
61%
39%
40%
40%
12% 12% 13%
88%
88% 87%
3%
3%
3%
97%
97%
Male
Part time
Full time
Shop-floor
Salaried
Fixed term
Permanent
2014 2013 2012
Turnover % 10.86 12.45 15.06
Turnover% (voluntary) 4.76 5.49 5.95
Average age of personnel 43.7 43.4 42.8
People development
Average training hours*)
(hours employee) 15 15 17
OHS figures
Lost-time accident frequency 4.4 5.4 8.5
Total recordable injury frequency 11.6 13.5 n/a
Absenteeism % 3.4 3.4 3.5
*) Reflects active employees
2010201120122013
UPM Raflatac
UPM Paper AsiaUPM Paper ENAUPM Plywood
Lost-time accidents at work/
mill. hours of work
2014
UPM Biorefining
UPM Energy
25
20
15
10
5
0
Lost-time accident frequency,
all UPM personnel
Significant change in UPM’s safety culture
Supporting re-employment
The UPM Docelles paper mill in France was
closed in January 2014. UPM’s activities on
permanently closed sites and in restructuring
typically focus on retraining, re-employment
and relocation within the company, as well as
on supporting entrepreneurship. Active meas-
ures promoting employment and retraining are
carried out in close co-operation with various
authorities and other third parties.
In November 2014, UPM announced a
plan to reduce its publication paper capacity
permanently in France, Finland and the UK.
In addition, UPM centralises UPM Paper
ENA supply chain planning and order fulfil-
ment activities to Augsburg and Dörpen in
Germany. Personnel would be reduced by
approximately 500 people by the end of 2015
according to the plan.
As part of UPM Raflatac’s efficiency
improving measures, the sheet labelstock
business closed down coating operations and
reduced capacity in sheet finishing in Polinya,
Spain. Sheet coating is being centralised at
Nowa Wies, Poland.
2014 was the final year for the “Step
Change in Safety 2012-2014” initiative
that was launched to improve safety
culture and performance within UPM.
Altogether, the initiative brought
approximately 18% improvement in
lost time accident frequency on the
previous year and 70% improvement
over three years.
Safety is an essential part of UPM’s activities
and business management system. Equal safety
requirements are applied to all employees as well
as to visitors and subcontractors working on
the company’s premises.
In 2014, UPM’s lost time accident
frequency (LTAF, the number of lost-time work
accidents per one million hours of work) was
4.4 (5.4). The target for the end of 2014 was
below five.
At the end of the year, 11 production
units achieved more than one year without any
lost-time accidents.
Unfortunately, there were three fatal acci-
dents in total in 2014 at UPM premises: one in
Finland as well as one fatal contractor accident
in Finland and one in Germany.
In 2014, UPM adopted a new indicator:
TRIF (total recordable injury frequency) which
includes, in addition to LTA, modified duty
cases and accidents requiring medical treatment.
In 2014 the frequency rate was 11.6 (13.5).
The rate of absenteeism due to illness and
accidents at UPM was 3.4% (3.4%) globally.
Absenteeism due to accidents at work decreased
by nearly 20% in 2014.
Accident prevention
In 2014, safety efforts concentrated particularly
on avoiding slip, trip and fall accidents at UPM
premises. Approximately one third of absences
due to work-related accidents have resulted from
these kinds of cases.
Regardless of severity, employees must
report all near misses and make safety observa-
tions. UPM has a monthly near miss and safety
observation report system in use at all its busi-
ness units. All high-risk near misses are investi-
gated with root cause analysis and corrective
actions are undertaken to prevent their reoccur-
rence. In 2014, a total of 47,095 near miss
and safety observation reports were
recorded.
Good performance in safety is
recognised with company-wide
safety awards. The 2014 UPM
Safety Award was given to
UPM Changshu paper mill
for excellent development in
safety results and activities.
In April, UPM celebrated the
company’s second Safety Week in
connection with the World Day for
Safety and Health at Work organised by
the International Labour Organization
(ILO).
Despite the end of the safety initiative, safety
work will continue to be one of the key focus
areas. UPM has set a new target for the next
three years: to achieve LTAF 3 by the end of
2017, with the focus on implementing and
perfecting local practices.
The UPM Paper ENA business area
launched its Safety 2.0 programme to ensure
full implementation of new safety practices
in its paper mills.
The target of the safety requirements is
to ensure that neither UPM employees nor
contractors are subjected to any risks when
working at UPM’s premises.
Contractor safety enhanced
UPM requires its contractors to follow safety
guidelines which enable them to carry out their
work safely whilst on UPM premises. The
safety induction is a prerequisite before start-
ing work at a UPM site. Nearly 40,000 contrac-
tors have completed the web-based UPM
safety induction by the end of 2014.
In 2014, the number of contractor accidents
was at the same level as in 2013.
In 2014, UPM also rewarded contractors
for their good safety performance, commit-
ment and initiative with an annual safety
award. The 2014 local contractor safety awards
were given to 11 contractors in Finland, UK
and China.
Focus on health
To support the wellbeing of its personnel UPM
is working in close co-operation with employ-
ees and external organisations responsible for
occupational health.
In 2014, UPM launched the “Focus on
Health” campaign, the aim of which is to
support continuous improvement of employ-
ees’ health, quality of life and ability to per-
form on a voluntary basis. The campaign was
run in connection with the Step Change in
Safety initiative.
The campaign concentrated on supporting
personal health under the themes of Activity,
Recovery and Nutrition. After reviewing health
practices among different businesses, functions
and sites, several new voluntary health and
wellbeing initiatives were launched under the
themes.
The pilot health project conducted at some
sites in Finland consisted of a medical check,
wellness assessment and personal support
based on individual health improvement action
plans.
Monitoring wellbeing
To improve wellbeing at work, UPM is moni-
toring employees using several metrics and
indicators on a yearly basis. The indicators
include, for example, the annual employee
engagement survey (EES), follow-up of safety
and absence indicators, and occupational
health checks aligned with national legal
requirements.
YOUNG PROFESSIONALS
GAINING EXPERIENCE
Emmi Reinikainen participates in UPM’s first
apprenticeship programme at the UPM
Kaukas mill in Finland. The objective is to
provide a comprehensive knowledge of the
paper production process and maintenance
work while performing different tasks at the
mills.
“For me, on-the-job training has proved an
excellent way to learn the work of the mill in
practice,” says Emmi Reinikainen of her
experiences.
Despite the turbulent times within the paper
industry, she is confident of her career
prospects.
“Currently, there are difficulties in all
industrial sectors, but I believe that there will
be more work opportunities in future. I have
enjoyed training very much, so I hope to be
able to continue working in this field.”
Altogether there are some 40 trainees at
four paper mills in Finland. The programme
runs in co-operation with local vocational
schools. At the end of the programme, the
participants will obtain a degree in the
paper industry. The two-year programme
started in February 2014.
UPM also organises apprenticeship pro-
grammes in other countries. For example,
there are more than 100 apprentices starting
in 15 professions at UPM in Germany every
year.
Read more:
UPM PERSONNEL IN FIGURES
More graphs available on page 139.
2012 22,180
2013 20,950
2014 20,414
Number of employees in total
5
4
3
2
1
0
2010201120122013
UPM Biorefining
UPM EnergyUPM Raflatac
UPM Paper AsiaUPM Plywood
2014
UPM Paper ENA
Absenteeism due to sickness and
accidents at work, all UPM personnel
% absence hours/theoretical working time
■ Accidents at work
■ Sick leave
70% IMPROVEMENT IN
LOST TIME ACCIDENT
FREQUENCY IN THREE YEARS