Sustainability Report 2014 Lek d.d.

53 Labour 3. Labour Lek’s human resources policy places people at the heart of the entire business operation ("It’s all about people"), along with three principles: "Cooperation. Development. Excellence." Its priority task is to design processes, tools and systems in the field of human resource management. Considerable emphasis is placed on talent development, succession planning, compensation of achievements, appropriate organizational development and training. Our HR team continually strives to ensure that all the proces- ses are performed professionally and in accordance with applicable standards. The policy supports the basic busi- ness orientations, aiming to achieve a high level of innova- tion, growth and better productivity in the reporting year. Lek, a Sandoz company, is creating a working environment of business opportunities and personal challenges, charac- terized by creative and dynamic work which offers a unique opportunity of working in international pharmaceutical devel- opment and research teams. 3.1 Human resources policy 70 70 GRI G4-DMA 71 GRI Disclosure G4-10 72 GRI Disclosure G4-11 73 GRI Indicator G4-EC3 74 GRI Indicator G4-EC6 Guests from the Ministry of Labour, Family, Social Affairs and Equal Oppor- tunities (from right to left): Peter Pogaãar, Director General of the Directorate for Employment Relationships and Rights Deriving from Employment, Minister Dr Anja Kopaã Mrak, Dejan Levaniã, State Secretary and Petra Levstek, Head of Cabinet. The Minister of Labour, Family, Social Affairs and Equal Opportunities visited Lek For more substantial cooperation The themes of Lek’s Management and the Minister of Labour, Family, Social Affairs and Equal Opportunities Dr Anja Kopaã Mrak meeting were Lek’s talent development, associated recognizing of human resources and cooperation with edu- cational and research institutions. According to the Minister’s opinion, the efforts of state institutions should be directed towards cooperation between academia and the economic sphere. The competitive advantage of Lek, a Sandoz company, is the knowledge of all employees. In this knowledge and the high proportion of educated employees she sees the opportunity for Slovenia that should reflect in stimulating business and the tax environment. Creating new jobs and transfer of knowledge into business are common goals of the state and Lek, therefo- re the Minister called for more substantive mutual cooperation. 3.2.1 Total workforce by employment type and employment contract 71 At the end of 2014, the proportion of women in Lek’s total workforce was 45%, a level identical to that in the previous year. At year end, 91% of all employees (91.4% in 2013), worked on a full time permanent basis, and 6.7% were fixed- -term employees (8.6% in 2013). 2.3% of all employees worked on a part-time basis, a level nearly identical to that in the previous year (2.2% in 2013). 3.2.2 Percentage of employees covered by collective bargaining agreements 72 The Collective Bargaining Agreement covers 99% of the total workforce, a level identical to that in the previous years. 3.2.3 Coverage of the organization's defined benefit pension plan obligations 73 Lek provides its employees additional pension insurance (Pillar II) to a maximum premium amount. Lek enabled the employees to join the collective additional pension scheme in 2001, and the opportunity was taken by a large majority. At the end of 2014, 85.57% (84.98% in 2013) of the workforce was included in the scheme. The premium is calculated on the basis of 5.844% of the employee’s gross salary. 3.2.4 Procedures for local hiring and proportion of senior management hired from the local community 74 At Lek, the process of hiring foreign employees is com- pliant with established corporate practice following EU 3.2 Employment