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Our personnel

Our personnel

In 2013 we continued a restructuring process which has been mainly driven by a declining global paper market. We strive to reshape our organization and help the people affected in a responsible way, honoring our Purpose and Values. During the year we also focused on implementing our People Strategy, primarily in the areas of leadership, workforce planning, employer branding and Occupational Health and Safety (OHS).


Our aim is to be proactive and involve key stakeholders as early as possible when there is a need for major organizational changes affecting our staff. Depending on the type of change, country legislation and union agreements, we normally inform employees and/or union representatives between two weeks

and two months prior to planned changes.


Where redundancies are unavoidable, our key principle is to work together with the employees affected to help them find other employment. Job openings in other Stora Enso units are made available to those affected wherever possible. Other kinds of support we can provide include outplacement schemes,

coaching, retraining, facilitating moves to other locations, or planning for early retirement. Employee organizations and other stakeholders are fully involved in such processes, in line with all

applicable regulations.


During 2013 we reduced personnel in a number of units across the company, in order to continue making our organization more cost-effective and competitive. All our divisions and Group-level functions were under review. This restructuring programme is still ongoing, but by the end of 2013 approximately 1 300

of our employees had left the company. The most significant reductions in personnel were made at our mills in Sweden and Finland. The Group also added personnel through the acquisition of Efora Oy completed on 1 November 2013. Efora provides maintenance services at several of Stora Enso's mills in Finland, and has a total of approximately 1 000 employees.





Leadership and employee development

We believe that good leadership is a crucial factor when it comes to achieving sustainable high performance and building our desired company culture. We have consequently developed

clear expectations for all key leaders within our organization, and we follow up on their progress using tools including our company-wide employee survey and our Management Audit Process (MAP). This MAP aims to identify talents, create succession plans for key positions, and find ways to enhance

our employees' skills to meet our business needs. To improve our bench of future leaders we launched a trainee programme named Grow during 2013.


One of our personnel targets is that all employees should have at least one annual performance review meeting with their manager. Some 80% (75% in 2012) of survey respondents stated

that they had participated in such meetings over the past 12 months, with no significant difference by gender.


Most of our employee development and training initiatives are run within our divisions, with varying focuses depending on local needs and regulations. The average number of training hours

per employee across all of our units that report on the extent of training was 27 (22 hours for female employees; 29 hours for male employees; and 26 hours for production workers). The average figure is approximately the same as in 2012 (25 hours).

Diversity and equal opportunities

Increasing employee diversity is important for us since we believe diversity is a key factor behind improved performance and innovation. We consider aspects such as gender, age, nationality and individual differences like varying experiences when assessing diversity within Stora Enso. When we recruit for new positions and development programmes such as our new trainee programme, we intentionally strive to increase the level of diversity. The 22 participants in our current trainee programme represent 8 nationalities, and have an equal gender distribution. In 2013 our leadership programme Pathbuilders involved 7 male and 5 female participants of 7 nationalities.


The benefits provided for employees vary from country to country, and is depending on country legislation. In our main countries in Europe, we typically do not provide different benefits to employees based on contract type (permanent or temporary), though certain differences in benefits may relate to the length of employment.



Labour relations

Employee relations, including collective bargaining agreements, are mainly managed on a national level. At the end of 2013 some 75% of Stora Enso's employees were covered by collective bargaining agreements. This figure is only approximate due to differences in national legislations, which in some cases prevent us from collecting information about union membership.


In China the right to freedom of association and collective bargaining is expressly stipulated by law. Most of our Chinese operations have established unions that form part of the state-authorized China Labour Union. We have also formed worker councils at most of our units in China to serve as channels for direct feedback and dialogues between employees and management. A similar system is in place in our operations in Laos, where we have a worker's representative group elected by

the workers.

Local hiring in our new markets

We believe it is very important that our new investment projects are staffed with managers and employees who are well-grounded in the local culture. Initially there is often a need for expatriate employees, but our goal is to use locally hired people wherever feasible, particularly in management teams. Our current management team for our investment project in Guangxi includes 3 managers of Chinese origin and 9 expatriates. Half of the 8-member management team at our Uruguayan joint venture in Montes del Plata are Uruguayans, and the others are Chilean, Brazilian and Canadian.