Diversity management

Pirelli is characterised by its multicultural context, where individuals express an enormous wealth of diversity. Culturally aware management of that diversity simultaneously offers the company a competitive advantage and shared social value.

The commitment made by Pirelli to equal opportunity and development of diversity at the workplace is stated in the Group’s principal sustainability documents: the Ethical Code approved by the Board of Directors, in the Group Social Responsibility Policy for Occupational Health, Safety and Rights, and Environment and in the Equal Opportunities Statement, both signed by the Chairman. These documents have been distributed to all employees in their local language and published on the institutional website www.pirelli.com / Sustainability.

Aside from the respect of differences, what has to unite all Pirelli affiliates in the same corporate culture are its corporate values, policies and rules, which are applied worldwide, with the only difference lying in the language used to translate them.

International scope is a defining characteristic of the Group: we operate in over 160 countries on five continents, and 88% of its employees work outside Italy at December 31, 2011. Awareness of the cultural differences that create our identity underlies the Group’s reliance on managers having local origins: 83% of senior managers work in their country of origin. In order to develop the innovative and managerial potential inherent in multiculturalism and in different professional contexts, the company promotes the growth of its managers through international intercompany transfers (see the following paragraph). It is no accident that 54% of the senior managers on active duty in 2011 have had at least one intercompany assignment in another country during their professional career. Moreover, at December 31, 2011, 15% of all managers on foreign assignment were women.

Pirelli is also committed to promoting maximum awareness of the positive and dynamic differences that exist between the two sexes in a complex organisation like Pirelli , while giving due consideration to the fact that it is necessarily impacted by the different cultures existing in the different countries.

Following below is a breakdown of employees by gender in the three-year period 2009/2010/2011, expressed as the percentage weight of women against the total number of employees in each job category, the data shown in the following table demonstrate the positive evolution underway. In 2011 the number of women in the Cadre category increased by two percentage points: this category represents the springboard to executive positions. The percentage of women in managerial positions was 18%, a significant figure within the Autoparts & Tyres industrial sector in which Pirelli operates.

Since March 1, 2012 the percentage of women on the Board of Directors of Pirelli & C. S.p.A. has risen to 20%, and thus complying immediately with newly applicable rules for the Pirelli Board of Directors beginning from the renewal scheduled to take place at the Shareholders’ Meeting held to approve the Annual Financial Report at December 31, 2013.

PERCENTAGE OF WOMEN
 
EXECUTIVES CADRES EXECUTIVES + CADRES WHITE
COLLARS
BLUE
COLLARS
TOTAL
2009 9% 18% 17% 32% 4% 9%
2010* 8% 18% 17% 31% 4% 9%
2011 8% 20% 18% 31% 5% 9%
* the organic related to the dismissed REAL ESTATE and BROADBAND SOLUTIONS in 2010 is excluded

Analysing the following table, the breakdown by gender in terms of employment agreement shows a substantial balance between men and women. However, there is a small difference between the two genders: in percentage terms, there are more women with an indefinite term employment agreement, while there are more men with a temporary employment agreement. This is an extremely positive phenomenon in view of non-discrimination, since it is a commonly held opinion in society that indefinite term jobs are held more by men, whereas definite term jobs are held more by women. Well, the Pirelli data show a positively inverted reality:

TYPE OF EMPLOYMENT CONTRACT BY GENDER
 
2010 2011
 
Man Woman Total Man Woman Total
UNLIMITED TERM 92% 95% 92% 92% 93% 92%
LIMITED TERM 8% 4% 8% 8% 6% 8%
AGENCY 0% 1% 0% 0% 1% 0%
TOTAL 100% 100% 100% 100% 100% 100%

In the context of gender diversity, Pirelli dedicates special attention to pay equity, constantly monitoring it and seeking out the causes tied to the differences found in pay. The countries considered in the analysis at December 31, 2011 are Brazil, China, Germany, Great Britain, Italy, Romania and Turkey, representing about two thirds of the total workforce covered by the remuneration policy (executives, cadres and white collar employees). At the methodological level, the remuneration ratios between men and women have been calculated for each individual country and by equal weight for the positions held, since a figure calculated at the Group level would not be representative insofar as it cannot give due consideration to the structural differences on different local markets, differences in professional seniority, and market remuneration logics whose peculiar characteristics are not comparable with each other.

The average pay differences between men and women measured in the aforementioned countries was 7% in favour of men in the white collar category and 2% in favour of men in the cadre category.

The most virtuous countries deserve mentioning:

  • Italy, which exhibits a 4% difference between the average pay for men and the average pay for women, in favour of men both in the cadre category and in the white collar category;
  • Turkey, where the ratios are in favour of men in both categories, with the differences amounting 3% for cadres and 2% for white collar employees;
  • Romania, where pay difference was 2% in favour of men in the white collar category, while there were no differences in average pay for men and women in the cadre category (with a ratio of 0%).

Finally, in the executives category, where women represent 8% of all members, there was an average pay difference of 5% in favour of men.

The encountered and investigated differences are substantially attributable to a mix of factors, including professional seniority and age of resources in the different cultures of the local markets.

The method used to calculate the pay differences indicated above has been modified since 2010. Therefore, the 2010 figures have not been imported, not being comparable with the 2011 figures. Until 2010 the pay differences between men and women were calculated at the same macro levels (cadres and white collar employees) without considering the effective weight of the positions in each macro level, which was instead a factor considered this year. The new approach is methodologically more correct, insofar as it compares the pay of individuals who hold positions of comparable weight, and insofar as the averages for each level are less influenced by the different number and distribution of men and women.

Generally speaking, on the various markets far men than women have belonging to the labour force “for years,” and this means that the “professional seniority” factor, which has a strong impact on pay performance, still favours men on average. On the other hand, the positive evolution the international context in terms of attention to gender diversity and especially the quality and quantity of women who are entering the labour market in increasing numbers will likely lead over the medium term to a greater balance between genders also in regard to professional seniority, once the seniority of women will have grown sufficiently to be assimilable to that of men in most markets. This will generally and gradually attenuate the pay differences between genders tied to the aforementioned factor.

The inclusive culture adopted by Pirelli as the basis for doing business permeates corporate life even in regard to individuals with disability. In order to standardise the corporate culture of affiliates towards disabled persons, the Pirelli Equal Opportunities Policy lists disability among protected differences, as a value and operating model applicable to all affiliates. In Italy, the Group has made and signed specific agreements with the relevant authorities to promote hiring of disabled workers by the Group. It also participates in social initiatives that facilitate matching the demand and supply of work between the Group and candidates with disabilities, as well as between the Group and foreign candidates. The percentage measurement of employees with disabilities in the multinational context of the company clashes with the objective difficulty in measuring their number, both because in many countries where the Group is present there are no specific laws or regulations promoting their employment and thus there is not a clear definition of disabilities as well as monitoring criteria, and because in many countries this information is deemed confidential and protected by privacy laws.

Management of the age factor is another one of Pirelli ’s priorities. As can be seen in the following table, the average age of the managerial and other categories is young in a homogeneous way between genders, so that the average age of men and women, already substantially aligned in 2010, is the same in 2011.

Average age by category and gender - 2010*  
 
 
 
 

Executives Cadres Staff Blue
Collars
Grand
Total
Women 45 42 36 33 36
Men 47 44 38 35 35
Grand
Total
47 43 37 35 36
Average age by category and gender - 2011**  
 
 
 
 
Women 46 42 37 33 36
Men 48 44 38 35 36
Grand
Total
48 44 38 35 36
* Figure cover 96% of group employees ** Figure cover 97% of group employees

The next table shows the average job seniority broken down by professional category and gender: again there are no substantial differences between men and women. In spite of the low average age of employees, their length of service at Pirelli is proportionately high, confirming a high sense of loyalty.

Average job seniority by category and gender - 2010*    
 
Executives Cadres Staff Blue
collars
Total
Women 15 14 10 5 9
Men 17 15 12 9 9
Grand
Total
17 15 11 9 9
Average job seniority by category and gender - 2011**    
Women 16 14 10 4 8
Men 17 15 11 8 9
Grand
Total
17 15 11 8 9
* Figure cover 96% of group employees ** Figure cover 97% of group employees

The following activities have been well-established for years to promote equal opportunities:

  • as far as possible in the recruitment process, seek to provide a balanced proportion of women in the range of candidates;
  • use of training to impact the cultural change connected with the promotion of diversity, using specific modules dedicated to “Diversity Management,” beginning with the courses dedicated to new hires (e.g. Pirelli ’s way Joining the Group);
  • take positive measures for respect of cultural and religious diversity, such as different foods that are clearly marked in company canteens so that everyone may freely comply with their own religious dietary restrictions, multilingual bookstores in the factory, and multilingual welcome kits for those joining Pirelli at a facility in a country other than their home country.

Monitoring by the company of the level of acceptance and promotion of diversity as perceived by employees at its facilities plays a key role in terms of management opportunities. The Your Opinion survey is conducted in local languages at the Group level every two years, with the next scheduled for 2012.

The results of the 2010 survey were highly appreciated in regard to the high level of acceptance by Pirelli employees of gender, cultural and age differences. The answers “I am absolutely in favour” – the highest ranking amongst the possible positive answers – totalled 82% in regard to respect of gender differences, 85% in regard to respect of cultural differences, and 85% in regard to respect of age differences.

Pirelli has been active for years in promoting diversity, both nationally and internationally. Its membership in the European Alliance for CSR, CSR Europe, preparation of toolkits for management of multiculturalism and gender differences with the Sodalitas Foundation (the Group has a seat on its Management Committee), active participation in drafting the Italian Charter for Equal Opportunities and Job Equality are some of the most representative activities that have engaged the Group in sharing its good practices with other responsible companies.

In January 2012, the biennial study presented by the international rating agency Vigeo entitled Non-discrimination and equal opportunities in the workplace ranked Pirelli among the 20 most advanced European companies in terms of equal opportunity and workplace non-discrimination management, on the basis of a survery that covered 539 companies, 34 sectors and 18 countries, or 80% of European market capitalisation.

Pirelli has also been engaged in promoting welfare initiatives for its employees.

In 2011 it set up an ad hoc organisational function, the Welfare Group Manager with Group level responsibility, confirming the increasing attention dedicated to this issue.

The Group has been historically supporting its own employees, with numerous measures calibrated to the different sociocultural contexts in which the affiliates operate.

Widespread measures include: day care centres offering special discounts to Group employees, subsidised holidays for employee children, scholarships, healthcare benefits, prevention campaigns, company discount arrangements with various service providers (from medical exams to car rental).

More details are found in the section “Measures in favour of the Internal Community” in this report.

As announced in November 2011 at the presentation of the update for 2012-2014 and vision to 2015 of the Industrial Plan, Pirelli confirmed that its growth and value creation goals include increasing management diversity, which will be accomplished through the launch of a three-year hiring plan at the Group level, as well as definition of guidelines on corporate welfare that will be applied to the affiliates.