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Arbonia's employees are the driving force, ambassadors, and key supporters of Arbonia's goal of supplying its domestic markets with energy-efficient, high-quality, and durable building products to promote energy-efficient new buildings and renovations for a resource-efficient future. They have shown themselves to be particularly dedicated, determined, and reliable under the difficult conditions and personal restrictions caused by the global medical emergency during the COVID-19 pandemic.

During this unusual time of the pandemic, Arbonia did not have to contend with an above-average number of absences or fluctuations, nor with reduced availabilities in distribution. As a result, it was possible to maintain production capacities at a high level. Particularly the commitment and conscientiousness in implementing the necessary protective measures at work as well as at home contributed to this.

Occupational health and safety

Occupational health and safety is more than just avoiding accidents at work. Prevention, ergonomics, and well-being at the workplace are equally relevant. For Arbonia, occupational health and safety is a key issue. Developments are continuously monitored internally and externally, and risk prevention and health protection also play a central role in employee training.

The key figures for occupational health and safety cover the employees of all manufacturing companies of the Arbonia Group as well as the headquarters in Arbon, Switzerland. Pure distribution companies were not included.

Key occupational health and safety figures

2020

2019

Delta

Proportion of employees covered by an occupational health and safety management system

98%

71%

Absence rate

6.2%

7.6%

Accident frequency rate (number of accidents per 200 000 hours worked)

4.0

4.1

−3%

With the introduction of a division-wide system, the Windows Division was able to further increase occupational health and safety above the respective national standards in the 2020 financial year.

Heating, Ventilation and Air Conditioning Division

Safety rests on many pillars

At the HVAC Division, the focus is on people. The health, satisfaction, and performance of employees are to be maintained and the sickness and accident rate minimised. To achieve these goals, the occupational health and safety committee meets regularly in Plattling (D), among other places, and improvements are implemented where necessary. Internal area inspections and hazard analyses for all workplaces – by the company doctors, among others – are standard. During the COVID-19 pandemic, hygiene concepts were also drawn up and followed.

The division also cooperates with the industrial inspectorate and the employers' liability insurance association and undergoes external safety audits. For medical emergencies, it has efficient management plans with defined reporting chains. Employees are required to report dangerous situations immediately to their supervisor or the specially trained safety officer.

Employees are provided with the protective equipment and work safety clothing required for their work free of charge, and each employee receives safety instructions for their workplace. In addition, defibrillators are available at all locations. If an accident should occur or an employee is falling ill, shift paramedics and first aiders are available. Employees also benefit from company health programmes such as "Focus on People" and can take advantage of company medical care and preventative medical check-ups.

Involvement and training of employees

Employees are involved in the design of the occupational health and safety systems because they have valuable suggestions for improvement. The division offers regular internal and external safety training. Certain occupational groups, such as welders, crane operators, and forklift drivers, undergo special training, for example. In addition, employees can take advantage of training that is relevant to their field of work, provided by the employers' liability association for wood and metal. The statistics on sickness and accident rates provide a monthly overview of the current situation. The causes of each accident are analysed in order to eliminate dangers in the future.

The HVAC Division has been successful with its occupational health and safety concept. There are seldomly any absences due to accidents or illness. The employees are motivated and usually remain loyal to the company for many years. A low error rate and the high productivity underscore that occupational health and safety is well established in the division.

Bicycles for health

In the reporting year, the HVAC Division implemented further measures for the continuous improvement of health protection. For example, with the "Jobcycle" initiative, the company made it easier for employees at the Plattling site (D) to access e-bikes so that daily outdoor exercise could be better integrated into everyday life and the commute to work could also have a positive impact on one's quality of life and health.

Sanitary Equipment Division

Protecting and promoting health

For the Sanitary Equipment Division, the health of its employees has top priority, which is why it strives to keep sickness and accident rates as low as possible. In order to maintain and strengthen the health as well as the performance of its employees, it has initiated a wide range of measures. The employees of the division benefit from company health programmes such as the "Focus on People" programme as well as other activities. In addition, they have access to an extensive range of courses and training on a variety of subjects. They can also take advantage of company medical care and preventative medical check-ups.

The challenges of the COVID-19 pandemic and the associated increased protection of employees also prompted the Sanitary Equipment Division to develop variable real glass protective partitions under the name "KermiPROTECT" or "Koralle SW100". These partitions elicited a huge response on the market. In addition to being used in offices, they can also be used in retail stores or restaurants. The glass products are distinguished from conventional Plexiglas variants by their high stability and permanent resistance to cleaning agents.

Careful prevention promises success

The division pursues the goal of identifying potential hazards before they arise. This is ensured, among other things, by regular meetings of the working committee. In addition to an analysis of the current situation, measures are derived to continuously improve occupational health and safety when necessary. Internal area inspections and hazard analyses for all workplaces – with the company doctors, among others – have now been implemented as standard. This makes it possible to identify specific challenges of individual workplaces or activities. In addition to this continuous internal self-auditing, the division also regularly receives feedback from external auditing bodies: These are area inspections by the industrial inspectorate and the employer's liability insurance association as well as external safety audits.

In the internal environment, the division acts through its predefined management plans and reporting chains. In order to identify any hazards directly where they happen, potentially dangerous situations must be reported immediately to the supervisor or the safety officers trained for this purpose. Shift paramedics and first aiders are always available in case of accidents or illness. The statistics on sickness and accident rates provide a monthly overview of the current situation and are a tool for management. In addition to this evaluation, the causes of each accident are analysed in order to avoid dangers in the future.

To protect the employees of the division, they are provided with the necessary protective equipment and work safety clothing free of charge, and they receive safety training when they start work. Another measure that can save lives in an emergency is the provision of defibrillators at all locations.

Codetermination and training

In the reporting year, the employees were once again involved in designing the occupational health and safety systems. The resolutions are not just specifications from the company but also the employees' own ideas and inputs. The specific training of certain occupational groups is essential for occupational health and safety; for example, special instructions are organised for forklift drivers. In addition, employees can take advantage of training that is relevant to their field of work, provided by the employers' liability association for wood and metal.

Successful concept

The occupational health and safety concept of the Sanitary Equipment Division has proven to be a complete success. There are seldomly any absences due to accidents or illness. Motivation and loyalty to the employer are the results. Coupled with a low error rate and high producti vity, this demonstrates that the division can show an exemplary result for occupational health and safety.

Windows Division

Fewer accidents and occupational illnesses

The Windows Division takes its duty to care for its employees very seriously. This is not only a matter of corporate responsibility but also has competitive reasons: Good safety management prevents costs and downtime and ensures a high production quality. Last but not least, applicants are increasingly paying attention to employers' safety standards and health benefits. The division aims to support its good reputation in this area through initiatives such as "Health & Safety first" and the new health and safety goals set in 2020, among others. These goals include lowering risks through the reduced use of hazardous substances as well as the systematic identification of ergonomically critical workplaces.

Safety data as a basis for planning

With regularly collected key figures and audits, the Windows Division is continuously improving its occupational health and safety management. Internal and external experts also contribute to this. In 2020, the division improved its accident analyses and introduced a new accident reporting system, among other things.

Occupational health and safety above the legal standard

The safety requirements in the manufacturing industry are high. All production sites are obliged to qualify safety specialists, in some cases also for individual topics such as environmental safety or handling chemicals. Inspections focusing on occupational health and safety and workplace controls are also mandatory. Instead of merely fulfilling these requirements, the division also has the implementation of the occupational health and safety measures checked by external authorities, such as the safety commission for the carpentry trade. The division also works with the Swiss National Accident Insurance Fund (Suva) and familiarises its employees with Suva's "Vital Rules", among other things. These rules cover topics such as securing objects and operating machinery according to regulations. Employees also have the opportunity to make their own suggestions for improving occupational health and safety. For this purpose, they can contact their supervisor or the safety specialist directly or submit their comments and ideas for process optimisation via the Intranet.

Comprehensive prevention and health services

The employees of the Windows Division can take advantage of comprehensive services in the area of health and occupational health and safety. These include occupational health management, company medical care and preventative medical check-ups, health and fitness programmes, as well as prevention campaigns together with Suva. After a long illness, employees also receive support in reintegrating into the workplace. The division also offers its employees individual ergonomic advice and training directly at their workplace. Aids such as standing desks and special mats for healthy standing are also made available to employees.

Regular training for risk protection

The Windows Division offers its employees the opportunity to attend internal and external courses to improve occupational health and safety. In 2020, for example, EgoKiefer in Altstätten (CH) held an emergency first aid course, and all installers received training on the topics of safety, health, asbestos, and assembly aids. In addition to general safety training, Slovaktual also conducted training in specific areas of work during the reporting year, such as handling electrical machines and forklift trucks. The regular training on health protection and hygiene at the workplace was also on the agenda. In addition to other training courses, the team leaders at Wertbau were trained in risk assessment, for example.

Doors Division

Occupational health and safety as a key value

For the Doors Division, occupational health and safety has a high relevance because it can prevent injuries and illnesses and, in extreme cases, even save lives. Invado therefore describes occupational health and safety as a key value and succinctly summarises its mission on occupational health and safety and hygiene as "Safety first. Always". The division constantly analyses and monitors the status of occupational health and safety in order to continuously improve. If accidents occur, their causes and consequences are precisely evaluated in order to be able to exclude dangers in the future.

The commitment to occupational health and safety also has advantages for operational processes and profitability and additionally reduces the risk of liability: Healthy employees mean little downtime, work processes can be planned well, machines are used optimally, and the product quality is high. For employees, it is motivating and strengthens their bond with the company when their employer is committed to their health and well-being and involves them in improving occupational health and safety. In every work contract, RWD Schlatter also commits to its customers to maintain a standard of occupational health and safety.

This task is everyone's responsibility

The division continuously sensitises its employees with appropriate information on the topic of occupational health and safety. Strict requirements and controls lead to high safety standards. The company's own committees take care of the different aspects of occupational health and safety; at Prüm and Garant, for example, these are the occupational health and safety committee, the health working group, the shop floor, and the works council committee for occupational health and safety. Occupational health and safety is also the responsibility of each individual employee, and everyone is obligated to report hazards and close calls. The division uses standardised processes to minimise hazards as much as possible. Prüm and Garant use a hazardous substances database and risk assessments, for example. Specific employee briefings on safety topics are standard at Prüm, Garant, and Invado. At RWD Schlatter, occupational health and safety is already included in the quality management but is continuously developed further by the safety officers and the shop floor management.

Active for health

Employees have access to occupational health services and health promotion programmes. The division subsidises membership in fitness clubs and yoga or Pilates classes. By promoting ergonomics, the division aims to prevent employee health problems such as back pain. In 2020, RWD Schlatter invested in new machines to reduce the workload, for example. By replacing older cranes and installing new ones, it was possible to improve ergonomics as well as efficiency in the cutting, manufacturing, and painting areas. The automation of individual production steps has also increased occupational health and safety. Every new employee receives a safety briefing for his or her workplace, and there are also regular training courses tailored to the requirements of different work areas. For example, there are training courses for technicians, engineers, and forklift drivers as well as instructions that authorise people to operate electrical and gas equipment. Due to the COVID-19 pandemic, however, all training courses on occupational health and safety had to be cancelled at Prüm and Garant in 2020.

Risk protection in the time of COVID-19

The COVID-19 pandemic has posed considerable challenges for occupational health and safety. At Prüm and Garant in 2020, almost all activities of the occupational health and safety department revolved around protection against the virus. Thanks to the intra-company COVID-19 management, there were no production downtimes and no known permanent damage to health. Despite the difficult framework conditions in 2020, Invado also draws a positive conclusion on the topic of occupational health and safety: In an ISC occupational health and safety audit conducted on behalf of the ADEO Group, Invado achieved an overall grade of B with a score of 97 out of 100 possible points.

Dynamic corporate culture

Arbonia lives a dynamic, open corporate culture and creates a pleasant, appreciative, and supportive working environment. Equal treatment and equal opportunity enjoy a high priority. Wages, social benefits, and contracts comply with the principles of a responsible group. This has a positive effect on employee motivation, reduces fluctuation, and strengthens competitiveness.

Fair conditions motivate employees

In 2020, the majority of Arbonia's employees were employed in four countries: Germany (38%), Poland (20%), Slovakia (18%), and Switzerland (12%). The remaining 12% were employed in Russia, France, the Czech Republic, Italy, Spain, Belgium, and the Netherlands. While the labour market is regulated differently in each country, the overarching guidelines of the group and the divisions apply at all locations. With the help of these guidelines, Arbonia aims to retain employees and recruit qualified personnel.

As an employer, Arbonia regularly compares itself with other companies and engages in dialogue with industry associations and other stakeholders. In this way, the group wants to ensure that it can maintain and further optimise its high level as a fair employer in line with the market in order to retain employees and be attractive to new applicants. Arbonia also measures its success as an employer with the fluctuation rate. This was 16.2% in 2019 and was reduced to 13.9% in the reporting year.

Equal opportunities for everyone

Arbonia does not tolerate discrimination of any kind: Employees are not allowed to be discriminated against on the basis of gender, sexuality, ethnicity, or religion. In the building supply industry, the majority of employees are male. This is no different at Arbonia either, but the group would also like to recruit more female employees and fill more key and leadership positions with women.

Binding code of conduct

The group's code of conduct stipulates the equal treatment of all employees, among other things. All employees receive training on the code of conduct when they join Arbonia. In the event of violations, they can contact their superiors, the human resources department, or the whistleblowing offices directly. Misconduct can be reported there, and after a report has been made, a defined process takes place for handling it. If necessary, organisational or personnel consequences are drawn. The whistleblowing offices are only rarely used. In surveys, employees can also regularly comment on the working environment they experience, for example, on their dealings with superiors and colleagues as well as on their workload.

Active exchange with social partners

The group maintains a good cooperation with employee representatives in all countries. This is an essential factor for Arbonia's business success. In Switzerland, all companies are members of Swissmem, the association of the Swiss mechanical, electrical, and metalworking industries. The collective labour agreement of the Swiss mechanical, electrical, and metalworking industries (MEM) is applied, unless other mandatory collective labour agreements are in effect. For this reason, contacts with the social partners usually take place via the industry association.

Helping to shape the corporate culture

Arbonia's code of conduct, salary system, leadership development, collective labour agreements, and wage agreements as well as strategic guidelines for human resources management are approved by the Board of Directors and implemented across all levels down to the local sites. The group supports the divisions in succession planning, leadership development, and the collection of key performance indicators, which are used to review the effectiveness of measures taken. When necessary, human resources issues are discussed and addressed across divisions.

Education as a valuable asset

With 162 trainees (mostly at Kermi, Prüm, and Garant in Germany) in a wide range of occupational fields, Arbonia was able to increase this number slightly compared to the previous year. Not only was the number of traineeships increased but the quality of training on offer has been repeatedly confirmed by Arbonia's trainees receiving awards. Arbonia supports the commitment to and interest in further vocational development with educational leave, sometimes with cost sharing. In addition, "dual study places" are offered every year in order to support young college students in a targeted and practical manner.

In addition to these vocational training measures, internal and external training courses ensure that employees are familiar with technical innovations and prepared for changing technical requirements. For example, the exhibitions at the respective locations as well as special training rooms offer the opportunity to learn on products during operation.

Flexible workplaces in times of a pandemic

Arbonia operates 18 production plants in nine countries. Two thirds of the employees are in the "blue collar" sector and are therefore unable to work from home. It is a central concern of Arbonia to maintain the corporate culture of an industrial company that uses modern production facilities and tools to manufacture products consisting of innovative technical expertise, high-quality materials, enthusiasm, ambition, and masterful execution. Before the pandemic, home office or teleworking was used rather sparingly, but in 2020 it was used extensively by employees in the "white collar" sector, as far as the job allowed. In many cases, the home office was seen as a rewarding change and as a means of promoting concentration. Arbonia will therefore continue to expand this form of work regardless of the external circumstances.

Composition of the workforce at the end of the year, in persons

2020

Share

2019

Share

Employees (permanent employees only; in FTE)

7 993

7 966

Employees (permanent employees only)

8 151

96%

8 153

97%

Apprentices, interns, trainees and externals

296

4%

269

3%

Employees by employment contract (permanent employees only)

Permanent

7 400

91%

7 285

89%

Temporary

751

9%

868

11%

Employees by employment type (permanent employees only)

Full-time

7 671

94%

7 674

94%

Part-time

480

6%

479

6%

Creating and securing jobs

Arbonia is a major employer at all its production sites and an important economic factor in the respective regions. The creation and protection of jobs is therefore not only relevant to the success of the group but is also linked to an economic and social responsibility for the operating sites and the surrounding communities. The companies of Arbonia have had a strong influence on some locations and maintain long-term relationships with local stakeholders. Since most employees live around the operating sites, Arbonia leaves behind a reflection of its corporate culture in the regions. It is important to the group to ensure the long-term attractiveness of its locations. The innovation strength and positive aura should have an external effect.

Arbonia wants to retain its employees for many years, because their loyalty and experience are extremely valuable. Personal care, appreciation, further training possibilities, and group-wide career opportunities are important factors in retaining employees at the company. When it comes to hiring new employees, Arbonia is dependent on the local conditions at the sites and on the labour markets. Especially at the Eastern European production sites, there was a great deal of competition in the past from the automobile and automotive supplier industries in the search for qualified employees.

In order to remain attractive as an employer, Arbonia is focusing on expanding its capacities with a long-term horizon. It is increasing its efficiency through synergy effects within the group, through investments in infrastructure, and through digitisation measures. Routine activities are increasingly being automated, which has a positive impact on the quality of the jobs. Arbonia provides its employees with modern, efficient facilities and offers them attractive, future-oriented jobs as well as a wide range of development and career opportunities.

No jobs had to be cut at Arbonia due to the COVID-19 pandemic. The group was able to protect its employees so well that the number of illness cases remained below the statistical average.

Compensation structure

In Arbonia's executive bodies, highly qualified individuals are committed to ensuring that the group continues to grow profitably and remains competitive, and that the interests of the stakeholders are taken into account in a balanced manner. Through its compensation structure, Arbonia creates incentives to retain experienced and successful members of Group Management and divisional management as well as the Board of Directors (see Compensation Report, pages 107 – 114). The compensation is in line with the market and tasks and takes into account the responsibility for the sustainable future of the group. Up to 80% of the total compensation of the Board of Directors and Group Management consists of shares (Group Management at least 17%).

Since Arbonia is a listed group, the compensation of the Board of Directors and Group Management is subject to the Ordinance against Excessive Compensation in Listed Companies Limited by Shares (OaEC) and must be approved by the General Meeting each year. The design of the compensation structure is influenced by many factors. The company's performance, analyses by independent third parties, and the market situation are decisive. A regular comparison with the compensation structure of comparable listed companies is also carried out. The Nomination and Compensation Committee is responsible for the compensation policy.

Cybersecurity

The increasing digitisation requires higher and higher security standards to prevent cybercrime and protect important information, data, and intellectual property. An attack on the digital infrastructure and group data could lead to significant outages, supply bottlenecks, and financial losses. Arbonia wants to reduce this risk to an absolute minimum and is therefore pursuing targeted measures to strengthen its resistance to cyberattacks (cyber resilience).

Arbonia establishes processes, guidelines, and standards and regularly checks that they are complied with and implemented. With its information security strategy, Arbonia pursues a holistic security approach that is continuously reviewed with audits and penetration tests.

In 2019, the position of the group ICT officer was created at the group level to coordinate the measures and activities and support the divisions and companies in implementing the necessary security measures.