SFIL Annual financial report 2018

1 I Management report 38 SFIL Annual Financial Report 2018 1.3 – LABOR RELATIONS 1.3.1. Organization of labor relations, notably the procedures for informing, consulting and negotiating with staff In 2018, the employee representative bodies were convened according to the statutory, regulatory and contractual provi‑ sions in force and as required, including: •  12 meetings for the Works Council, •  7 meetings for the CHSCT (health, safety and working conditions committee), and •  10 meetings for the staff representatives. 1.3.2. Collective bargaining agreement review Numerous negotiations took place in 2018, resulting in the signing of the following agreements: •  SFIL Agreement on Diversity and Well-Being at Work (March 6, 2018), • Agreement further to the mandatory annual negotiations on compensation, working time and the sharing of added value (January 23, 2018), • Agreement on the implementation of the company sav‑ ings plan (PEE) (November 6, 2018), • Agreement on the implementation of the group retirement savings plan (PERCO) (November 6, 2018). A record of agreement was drawn up regarding the man‑ datory annual negotiations on compensation, working time and sharing of added value (January 23, 2018). 1.4 – HEALTH AND SAFETY 1.4.1. Work health and safety conditions In 2018, SFIL recorded five commuting accidents (none serious) and two workplace accidents (door trapping and fainting incident). It introduced certain measures to reduce accident risks, including a new sign and the laying of non- slip strips for motorcyclists, both in the car park. The HR and Facilities Management divisions also reviewed the procedure for managing high-risk situations: crisis unit, management of the person concerned, call to family, and transfer of information to Management and the relevant rep‑ resentative bodies (CHSCT secretary). Actions to manage difficult situations, particularly as regards family carers, were put in place in consultation with the HR division, the CHSCT secretary and the human risks corre‑ spondent (several days granted to employees to support end-of-life relatives). A conference was organized on this theme to raise employee awareness. The use of telecommuting also reduced employees’ travel times, improved their work-life balance and, indirectly, mitigated stress risk. The relevant bodies were regularly updated on the implementation of this new organizational method throughout the year. For the first time, a vaccination campaign was held at the Issy-les-Moulineaux site, and employees in Lyon were able to obtain reimbursement for vaccination costs on request. Over a hundred employees were vaccinated. SFIL worked all year to improve working conditions, in par‑ ticular installing a rest room. a significant business unit, staff responsible for a function in charge of legal affairs, finance including tax and budget preparation, human resources, the compensation policy or information and economic analysis technologies, risk func‑ tion staff and any staff involved in an activity related to inter‑ nal control and compliance, as well as all employees whose variable compensation in a given year exceeds EUR 87,500 or who have benefited during a year from an amount of fixed and variable income of more than EUR 200,000. The compensation of members of the Executive Commit‑ tee (excluding the Chief Executive Officer) and the General Auditor is submitted, on the proposal of the Chief Executive Officer, to the Compensation Committee. If the variable compensation awarded for year N exceeds EUR 87,500, one portion of the variable compensation (60%) will be paid on a non-deferred basis in year N+1 and the other (40%) on a deferred basis over three years (start‑ ing in the year following that in which it was awarded). This deferred portion will be subject notably to the level of per‑ formance being maintained. This principle of spreading var‑ iable compensation applies to all SFIL employees (including members of the Executive Committee and the General Auditor). In 2018, the gross compensation paid to the abovementioned group of people totaled EUR 7.03 million for 50 employees, compared with EUR 7.42 million for 53 employees in 2017. 1.1.3.5. Gross payroll In 2018, the annual gross payroll was EUR 28.41 million (in 2017, this amount was EUR 28.78 million). 1.1.3.6. Average annual fixed compensation This is the average annual fixed compensation of employ‑ ees with permanent contracts at the Company as of December 31. EUR 2017 2018 Permanent contract 64,244 65,273 1.1.3.7. Incentive and profit-sharing schemes Incentive and profit-sharing schemes are in effect at SFIL (agreements of June 26, 2017). 1.1.3.8. Employee shareholding situation Pursuant to the provisions of article L.225-102 of the French Commercial Code, it is hereby stated that the employees of the Company and associated companies within the meaning of article L.225-180 of the French Commercial Code had no shares in the capital of the Company at the close of the 2018 fiscal year. 1.2 – ORGANIZATION OF WORK 1.2.1. Organization of work time Year 2018 Number of employees % of employees Part-time employees 34 9% Teleworking employees 142 37% Employees with flat daily rate 304 78% Employees with hourly rate 84 22% 1.2.2. Absenteeism (*) In 2017, the absence rate was 1.8% (in 2017, this rate was 2.0%). (*) Absence due to sickness or work or commuting accidents.