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Dialogue and engagement in
the building of high-value
relationships

Professionals

IP team profile

[G4-10 / G4-11]

All IP employees are covered by collective bargaining agreements and represented by the Union

In 2013, IP Latin America employed 7,423 people, 2,708 of whom direct employees and 4,715 hired to provide fixed services.

The region with the highest concentration of employees is Mogi Guaçu, while most Company personnel workers and service-providers work in industrial and forestry operations.

All International Paper professionals are covered by collective agreements and are represented by trade unions.

IPeople held at the Luiz Antônio mill.


Division by gender applies to own employees only

Unit Employees (including Interns and Minor Apprentices) Service Providers
Men Women Men and Women
Industrial Mogi Guaçu 870 75 1,478
Luiz Antônio 587 42 884
Três Lagoas 176 38 487
Total Industrial 1,788 2,849
Corporate 237 178 543
Total Corporativo 415
Forestry 396 109 1,323
Total Forestry 505

Communications and transparency

From IP to employees

The Corporate Communications and Product Management Department, via its Internal Communication area, is responsible for managing International Paper Latin America's relations with its employees. In order to implement its communications strategy, the Department uses various vehicles and tools that reinforce the corporate culture and identity, with a focus on building the Organization’s vision of the future and on ensuring solid relations between the various departments, teams and managers. IP's formal internal communications vehicles are:

  • Infinitas Possibilidades (Infinite Possibilities) Magazine – This is distributed to all professionals and service-providers in the IP units and features material and articles related to corporate strategy. It is a bimonthly publication.
  • Broadcast with the CEO – Live transmission of Global CEO John Faraci's speeches. The broadcasts take place every quarter and are aimed at sharing information with professionals worldwide regarding the company's performance during the period and outlining the strategy for the coming quarter. Every IP unit in Brazil receives the signal and transmission is simultaneous to everyone.
  • Notice boards – These are displayed in all IP’s units in areas of high circulation and visibility, and they are updated every week. They carry corporate messages and information relating to the units’ day-to-day activities, ensuring that all employees and service providers have access to the latest IP news.
  • Intranet – Unites all Company information for general access, including internal regulations, corporate policies and details on management processes. The home page is changed daily to maintain its attraction for users. There is also a link to the main company news items each day.
  • IP em 5 minutos (IP in 5 minutes) – This is a newsletter sent to all IP professionals by email every Wednesday containing a weekly summary of the main topics addressed by the internal communications channels in the period.
  • Announcements – These are messages sent via e-mail and posted on the notice board. They are usually related to specific Human Resources initiatives such as recruitment, departmental reorganizations and information on occupational health and safety campaigns, among others. These announcements are also used to reinforce internal campaigns or to inform and mobilize staff around an important project.
  • Announcements by the CEO – These are messages sent by the CEO via email and posted on the notice board to inform employees about measures or events that are particularly important for the Company.

From employees to IP

[G4-49 / G4-50]

Aware of the importance of its professionals’ opinions, IP develops formal communications programs that allow its relations with employees to flow in a transparent manner

Aware of the importance of its professionals’ opinions, IP develops formal communications programs that allow its relations with employees to flow in a transparent manner. Some of these programs are listed below.

  • IPeople – Meetings between leaders and the various professional levels of the Organization. The idea is to disseminate important information and corporate values. In 2013, 29 meetings were held, attended by 293 people.
  • IPeople Leadership – Consisting of four annual meetings, two for top management and two for the coordination and supervision levels. During these events, participants debate strategy, financial results, challenges and the various leadership roles, among other subjects. The three meetings in 2013 involved around 150 people.
  • Chat with the CEO (On-line) – Through a video lasting up to 15 minutes, every quarter CEO Glenn Landau reports IPCo and IP Brazil’s main results.
  • Chat with the CEO (On-site) – Once every six months, CEO Glenn Landau meets with IP professionals at the mills for one and a half hours, aiming to clarify any doubts they might have. In 2013, two events of this type were held, involving a total of 80 employees.

HSE – Health, Safety and the Environment

Safety is a crucial issue for International Paper, so much so that it is one of the Company's Values. In order to provide its employees with guidance in regard to the correct behavior and procedures for preventing accidents and avoiding occupational diseases and adverse environmental impacts , IP regularly discloses its Environment, Health and Safety Policy, which contains the general rules governing this area.

The Company spares no effort to ensure an accident-free workplace, investing continuously in equipment and processes.

Top management is fully committed to ensuring that this issue remains one of the Company’s strongest values and becomes an integral part of all its activities, and progress is closely monitored by IP’s head office in the United States through quarterly meetings focusing on HSE management.

At Orsa IP, the LIFE project (more details below) celebrated its first anniversary in April 2014, having achieved a significant reduction in the accident rate, and the tendency is towards further reductions and an even better quality of life. At the moment, the main programs are related to behavioral and leadership issues designed to raise employees’ awareness of the subject’s importance.

Presentation of the LIFE Program in IP mill
The program orients professionals in such a way as to ensure that safety becomes consolidated as a shared value.

Health and safety programs

In order to ensure that its employees meet the established safety targets, IP promotes several programs related to the issue, among which LIFE and Positive are particularly worth mentioning.

LIFE (Life-Changing Injury and Fatality Elimination)

Eliminate accidents and fatalities – guarantee life. Launched in November 2010 by IP Latam, this program is designed to ensure an even safer workplace, with a focus on zero accidents, complementing the Company's other initiatives in this area.

The program's official targets, valid for IP units worldwide, are to reduce serious injuries and eliminate fatalities. In order to establish LIFE's objectives, IP carried out a comprehensive survey of those areas and situations that gave rise to most injuries and fatalities, not only within the Company itself but also in other companies, the results of which were used to shape the programs five dimensions:

  • Protection of machinery and equipment;
  • Motorized equipment;
  • Driving safety;
  • Slips and falls;
  • Exposure to hazardous substances and environments.

Leadership’s proactive approach is fundamental. Managers are committed to setting an example and conducting relations with their teams in such a way as to ensure that safety becomes consolidated as a shared value. The main idea that LIFE aims to get across is that everyone is responsible for their own safety and that of their colleagues.

Positive

IP's other safety program is Positive (Safety Process based on the Observation of Unsafe Conditions and Behavior), an important tool for strengthening Safety as a Value. In this program, the Company encourages its employees to identify inappropriate behavior regarding safety and, having done so, to provide constructive feedback to their colleagues, thereby creating an internal collaborative network that fosters an understanding of risks and a proactive approach to eliminating accidents.

Other initiatives

IP Latin America also holds three traditional safety-related events: the annual internal audit, also known as the Evaluation of Key Health and Safety Elements; Health, Safety and the Environment Week ("SIPAT"), which also takes place once a year; and the Daily Safety Discussions (DDS). There is also the Traffic Campaign, which began in 2008, which simulates traffic situations in order to advise employees on the best way to behave in different roles and circumstances.

In practice, the LIFE program translates into a series of initiatives, including:

  1. Training and qualification of employees, managers and executives in the identification of safety risks;
  2. Meticulous evaluation of safety equipment to be acquired and installed;
  3. Development and improvement of operational procedures;
  4. Implementation and monitoring of preventive and corrective measures;
  5. Establishment of more efficient inspection programs focused on understanding risk.

Percentage of total workforce represented in formal joint management–worker health and safety committees

[G4-LA5]

Unit Official health and safety committees
Industrial Mogi Guaçu CIPA, SIPAT, SESMT (Occupational Health and Safety Committee), DDS, COMSEGS (Safety Committee) and Quality of Life Groups
Luiz Antônio CIPA, SIPAT, SESMT, DDS, COMSEGS and Quality of Life Groups
Três Lagoas CIPA, SIPAT, SESMT, DDS, COMSEGS and Quality of Life Groups
Corporate MG/LA/TL/SP CIPA, SIPAT, SESMT, DDS, COMSEGS and Quality of Life Groups
Forests Forestry Division CIPATR, SIPATR, SESTR, DDS, COMSEGS and Quality of Life Groups

100% of employees are represented by these committees

Scope: ORSA IP

Production Unit Official health and safety committees
Industrial + Corporate Paulínia CIPA, SESMT, and PEP
Franco da Rocha CIPA, SESMT and SIPAT
Rio Verde SESMT, CIPA, SIPAT, DDS, PCA, PCM, LIFE and Hazardous Energy Control Program
Manaus CIPA . SESMT and SIPAT
Suzano CIPA, NR12, PEP, DDS, SESMT and SIPAT
Nova Campina One committee for each LIFE item, CIPA and DDS

100% of employees are represented by these committees

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and gender

[G4-LA6]

There were no fatal accidents in IP’s plants, corporate headquarters, forests and Orsa IP units in 2013.

Year Unit N. of Fatalities (absolute) Total Incident Rate (frequency) - TIR Lost Workday Incident Rate (frequency) - LWIR No. of Days Lost Absenteeism
Own Employees Outsourced Employees Own Employees Outsourced Employees Own Employees Outsourced Employees Own Employees Outsourced Employees Own Employees
2011 Plant Mogi Guaçu 0 0 1.01 0.83 0 0.31 0 NA 14.82
Luiz Antônio 0 0 0.9 1.87 0.18 0.35 114 NA
Três Lagoas 0 0 0.5 0.7 0 0 0 NA
Corporate São Paulo 0 0 0.27 0.77 0 0 0 NA
Forests Forestry Division 0 0 0.68 0 0.17 0 11 NA
2012 Plant Mogi Guaçu 0 0 0.79 0.45 0 0 0 NA 14.00
Luiz Antônio 0 0 1.25 0.85 0 0 0 NA
Três Lagoas 0 0 0.51 0 0 0 0 NA
Corporate São Paulo 0 0 0 0.67 0 0.08 0 NA
Forests Forestry Division 0 1 0 0.18 0 0.18 0 NA
2013 Plant Mogi Guaçu 0 0 0.91 0.45 0.37 0.18 35 NA 13.91
Luiz Antônio 0 0 0.91 1.16 0.34 0.39 340 NA
Três Lagoas 0 0 0.51 1.95 0.00 0.00 NA NA
Corporate São Paulo 0 0 0.00 1.31 0.00 0.00 NA NA
Forests Forestry Division 0 0 0.50 0.24 0.00 0.08 NA NA

Notes: LWIR corresponds to the number of accidents that result in lost working days multiplied by 200,000 hours, divided by the number of hours worked. TIR corresponds to the total number of accidents (resulting or not in lost working days) multiplied by 200,000 hours, divided by the number of hours worked. Both indicators cover own and outsourced employees separately. Lost workdays refer to all partial and total absences from work. The absenteeism rate is calculated by dividing total absences by the total number of hours available, multiplied by 100. Both indicators apply to the Company’s own employees only. In 2010 and 2011, the “Corporate” line was shown as "Corporate - São Paulo”. This designation was changed because the figures also include corporate employees at the other units. These figures are identical to those in the previous report. Only the absenteeism rate changed, moving up from 10.05 to 14.82, which is the correct value for the sum of the rates for all units.

Scope: Orsa IP

Year Total Incident Rate (frequency) - TIR Lost Workday Incident Rate (frequency) - LWIR No. of Days Lost Absenteeism
Own Employees Outsourced Employees Own Employees Outsourced Employees Own Employees Outsourced Employees Own Employees
2011 Paulínia - Paper 8.79 0 4.92 0 198 0 120
Paulínia - Packaging 3.05 0 2.34 0 104 0 871
Franco da Rocha 5.69 0 4.98 0 58 0 1.37
Rio Verde 4.72 0 2.47 0 111 0 3.43
Manaus 4.16 0 1.92 0 NA NA 3.9
Suzano 3.16 0 3.03 0 672 0 3.49
Nova Campina 3.47 0 1.98 0 378 0 2,229
Total 2011 4.17 0 2.78 0 1,521 0 3,232.19
2012 Paulínia - Paper 4.78 3.41 227 98
Paulínia - Packaging 4.55 3.87 114 665
Franco da Rocha 4.21 0 4.21 0 144 0 1.45
Rio Verde 2.23 0 1.34 0 160 0 4.4
Manaus 2.69 0 2.69 0 629 0 4.2
Suzano 1.93 0 1.80 0 225 0 3.11
Nova Campina 1.94 0 0.24 0 15 0 1,804
Total 2012 2.85 0 2.20 0 1,514 0 2,580.16
2013 Paulínia - Paper 1.66 0.00 0 148
Paulínia - Packaging 0.91 0.45 126 738
Franco da Rocha 1.40 0.00 1.40 0.00 16 0 2.06
Rio Verde 1.54 0.00 0.88 0.00 236 0 4.23
Manaus 0.80 0.00 0.00 0.00 654 0 4.5
Suzano 0.812 0.00 0.55 0.00 240 0 3
Nova Campina 0.68 0 0.23 0 5 0 1,774
Total 2013 0.99 0 0.45 0 1,277 0 2,673.79

There were no fatal accidents in 2013.

Support programs for employees, their families and members of the community

Workers with high incidence or high risk of diseases related to their occupation

[G4-LA7]

IP maintains several health-related educational, awareness raising and prevention programs for its employees, The Company’s units are not located in regions of risk or where there is a high incidence of specific infectious diseases.

Description of existing programs:

All industrial units implement programs throughout the year to promote the health of their workers.

  • Janelas Quebradas (Broken Windows) Training Program: focuses on workers’ behavior. Covering around 2,500 employees, it is designed to raise their awareness of safety procedures.
  • SIPAT / SIPATR: Health Safety and Environment Week. Covers around 2,500 workers and is designed to further increase their awareness regarding safety.
  • Healthy Heart Program: Evaluation of employees’ health. Also covers around 2,500 workers and is designed to reduce health risks.
  • Workplace Health, Safety and Environment training program: Deals with compliance with the legislation, especially NR 33, NR 35 and NR 10 standards. Covers around 6,200 workers and is designed to ensure compliance with the law and raise awareness of safety procedures.

Health and safety topics covered in formal agreements with trade unions

[G4-LA8]

The production units (Mogi Guaçu, IPEX Mogi Guaçu, Luiz Antônio and Três Lagoas), São Paulo corporate headquarters and the Forestry Division all maintain collective agreements covering health and safety matters.

Health-and-safety-related topics covered by collective agreements:

  • Health care;
  • Guarantees for legal discharge due to illness or accidents;
  • Additional sickness or accident benefit;
  • Indemnification for permanent disability or death;
  • Election of the CIPA (Internal Accident Prevention Committee);
  • Right to refuse to work due to serious or imminent risk;
  • Personal protective equipment (PPE);
  • Protection measures;
  • Emergency room;
  • Drinking water
  • Meals;
  • Automation;
  • Medical certificates and dental emergencies;
  • Retail discount cards (supermarkets, pharmacies and opticians;
  • Working tools;
  • Application of pesticides and herbicides;
  • Transportation of the injured;
  • Accommodation;
  • Compensation during adverse weather conditions.

Scope: Orsa IP

  • PPE;
  • Health and safety committees;
  • Training and education;
  • Right to refuse to unsafe work;
  • Election of the CIPA;
  • Medical and dental certificates;
  • Additional sickness benefit;
  • First aid and ambulance;
  • Retail discount cards (pharmacies and opticians);
  • Emergency room;
  • Uniforms and equipment;
  • Protection measures;
  • Compliance with NR safety standards.
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