Diversity management

Pirelli is characterised by a multinational context where individuals manifest a great diversity, whose conscious management simultaneously creates a competitive advantage for the Company and a shared social value.

Pirelli's commitment to equal opportunities and the valorization of diversity in the workplace is expressed in the main Group Sustainability documents: the “Ethical Code” approved by the Board of Directors, the Group's “Social Responsibility Policy for Occupational Health, Safety and Rights, and Environment” and 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. While respecting the cultural differences of the individual countries, what necessarily unites all Pirelli affiliates in the same culture are its shared corporate values, policies and rules, which are applied everywhere with the sole difference of the language into which they are translated.

Internationality and multiculturalism are the characteristic elements of the Group: Pirelli operates in over 160 countries on five continents, and 91.6% of employees on the payroll as at 31 December 2014 worked outside of Italy.

Awareness of cultural differences that create the identity of the Company involves the utmost confidence in the Management of local origin: 71% of Senior Managers work in the country of origin, Senior Manager refers to the direct reports to the Chairman & CEO as at 31 December 2014.

In order to develop the innovative and managerial potential in multiculturalism and in various professional settings, the Company promotes the growth of its managers through international infra-group mobility (reference is made to the following paragraphs related to "Remuneration and Sustainability" and "International Mobility"). Not surprisingly, 57% of Senior Managers active in 2014 experienced at least one intra-group foreign assignment during their professional experience with the Pirelli Group. At the end of 2014, 12% of all managers on foreign assignment were women.

Pirelli is also committed to promoting maximum awareness of the positive 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.

As for the breakdown of the workforce by gender in the three years 2012-2013-2014, expressed as a percentage weight of women out of the total components of the category, the data shown in the table below shows the current positive developments: in 2014 the percentage of female executives stood at 9% unchanged compared to 2013 and up compared to 2012, while the percentage of women in managerial positions - 19% of the reference population - grew compared to the data of the previous two years. As for the presence of women in the workers category, 2014 confirmed the data of the previous two years. Total female presence in the Group's workforce amounted to 12% in 2014, in line with respect to 2013.

PERCENTAGE OF WOMEN BY PROFESSIONAL CATEGORY

 EXECUTIVESCADREEXEC+CADRE
(=Tot. Managers) 
WHITE COLLARSBLUE COLLARSTOTAL
2012 8% 20% 18% 35% 8% 13%
2013 9% 19% 18% 33% 8% 12%
2014 9% 20% 19% 32% 8% 12%
 

Analysing the breakdown by gender in terms of employment contract shows a substantial balance between men and women. With one small difference: as a percentage more women have a permanent contract, while more men have temporary contracts.

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

201220132014
  Men Women Total Man Women Total Man Women Total
PERMANENT 92% 96% 93% 93% 97% 93% 93% 96% 94%
TEMPORARY 7% 3% 6% 7% 3% 7% 7% 3% 7%
AGENCY 1% 1% 1% 0% 0% 0% 0% 1% 0%

The rate of employee return to work after maternity/paternity leave at Pirelli in relation to its total workforce in all industrial countries where the Company operates was positive. In particular: a year following the maternity and paternity event occurred in 2013, 2014 saw 89% of women and 98% of men still employed by the company. The difference, compared to the data that is in any case extremely positive with regard to women, is to be considered physiological in light of the different socio-cultural contexts in which Pirelli female employees work.

In the context of gender diversity, Pirelli dedicates special attention to equal remuneration, constantly monitoring it and seeking out the causes tied to the differences found in pay.

The countries considered in the analysis at the end of 2014 were Brazil, China, Germany, Italy, Romania, Turkey, Mexico, Venezuela, Argentina, Egypt, the USA and Russia, representing approximately 3/4 of the total workforce subject to the remuneration policy (executives, managers and employees).

At a methodological level, it should be noted that the remuneration ratios between men and women were calculated for each country and at the same weight of positions held, crossing the grade (or the weight assigned to each position based on several factors) with elements such as performance and professional seniority. It should be noted that data calculated and/or reported only at group level would not be representative because unable to pay due attention to the structural differences of the various local markets, the different professional seniorities and the logic of remuneration markets with special features not comparable with each other.

The average pay gap between men and women detected in these countries is equal to 3% in favour of men for both white collars and cadres, compared to 6% in 2013 and 7% in 2012 for white collars and 4% in 2013 and 5% in 2012 for cadres. Some examples: 

  • Italy, which features a difference between average remuneration for men and average remuneration for women of around 5% in favour of women for the white collar category (vs. 2% in 2013 and 5% in 2012 in favour of men) and 2% also in favour of women (vs. 3% in 2013 and 7% in 2012 in favour of men) for the cadre category ;
  • Turkey, where the differential is in favour of men by 5% for the white collar category (vs. 6% in 2013 and 2012);
  • Romania, where for the white collar category there was a differential of 7% (vs. 3% in 2013 and 4% in 2012) in favour of women and also for the cadre category there was a shift in favour of women of 2% (in 2013 the differential was in favour of women by 4%; in 2012 the ratio was in favour of men by 4%); 
  • Brazil, where for the white collar category the differential was equal to 4% (vs. 8% in 2013 and 6% in 2012) in favour of men and for the cadre category it was again 1% in favour of men, returning to the level of remuneration equity in 2012 (in 2013 the differential was 4% in favour of men);
  • Germany, which showed a difference between average remuneration for men and average remuneration for women of around 5% in favour of men for the white collar category and around 2% also in favour of men for the cadre category;
  • Venezuela, which showed a difference between average remuneration for men and average remuneration for women of around 4% in favour of men for the white collar category.

Finally, with reference to the population of executives, of which women account for 9% (unchanged compared to 2013 and an increase compared to the value of 8% in 2012), there is an average remuneration difference of about 6% in favour of men (in 2013 the ratio was 1% in favour of women, while in 2012 the ratio was 3% in favour of men. In general, it must be considered that on the various markets, the “professional seniority” factor, which has had a powerful impact on pay trends, still favours men on average. On the other hand, the positive change in the international context in terms of attention to gender diversity and, especially, the numbers of women who are increasingly entering the labour market, will plausibly lead to greater gender balance over the medium term, including in terms of professional seniority, when the average seniority of women will have grown sufficiently to be comparable to that of men in most markets. It is assumed that this also gradually attenuates the remuneration difference between genders related to the factor mentioned, as evidenced by the aforementioned Pirelli trend.

In regard to the standard salary of new hires during their first year of work at Pirelli, this is greater than the minimums prescribed by local legislation And there are no differences between men, women, or any other sort of diversity.

The inclusive corporate culture cultivated by Pirelli in its way of doing business permeates corporate life even in the case of persons with different abilities. In order to standardise the corporate culture of subsidiaries and associated companies towards disabled persons, the Pirelli Equal Opportunities Statement 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 participates in social programmes that facilitate matching the demand and supply of work for both disabled and foreign candidates).

The percentage measurement of disabled employees in the multinational context of the company clashes with the objective difficulty of measuring their number, both because in many countries where the Group is present, there are no specific laws or regulations promoting their employment and therefore disabilities are not automatically detected, and because in many countries this information is deemed confidential and protected by privacy laws. That said, about 1.2% of the total workforce in 2014 had a disability under local law. It is likely that the actual percentage of disabled persons working at Pirelli might be higher, although any estimates would be discriminatory per se.

In regard to the “age” factor, the following table illustrates how the population (including the managerial population) is evenly young between the two genders, so that the average age of men and women was substantially the same over the entire three-year period.

AVERAGE AGE BY CATEGORY AND GENDER

2012*ExecutivesCadrewhite collarsblue collarsAverage
Women 46 41 37 36 37
Men 48 43 38 35 36
Total 48 43 38 36 36
 

2013**ExecutivesCadrewhite collarsblue collarsAverage
Women 46 42 37 36 37
Men 48 44 38 36 36
Total 48 43 38 36 36

2014***ExecutivesCadreWhite collarsBlue collarsAverage
Women 49 43 37 36 37

Men

49 45 38 36 37
Total 49 44 38 36 37

*Information applies to 98% of the workforce
**Information applies to 99.8% of the workforce
***Information applies to 100% of the workforce

The following table represents the average length of seniority highlighted by professional category and gender: no significant differences are noted between men and women, as the data in the last two years is mainly attributable to the entry in the perimeter of a significant number of women that, of course, started their seniority in Pirelli only in 2012 and 2013. In general it is observed that, considering the average young age of employees, Pirelli retention is proportionately high, with a total average up in 2014 compared to the previous two years, confirming a high sense of loyalty.

AVERAGE JOB SENIORITY

2012*ExecutivesCadreWhite collarsBlue collarsAverage
Women 13 10 8 3 6
Men 16 14 10 8 8
Total 16 13 9 8 8
 

2013**ExecutivesCadreWhite collarsBlue collarsAverage
Women 12 13 8 4 6
Men 16 14 9 8 8
Total 16 14 8 8 8

2014***ExecutivesCadreWhite collarsBlue collarsAverage
Women 14 14 8 4 7
Men 16 14 9 8 9
Total 16 14 9 8 9

*Information applies to 98% of the personnel
**Information applies to 99.8% of the workforce
***Information applies to 100% of the workforce

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

  • the use, as far as possible, of lists of candidates with significant presence of women in recruitment processes; 
  • use of training to drive 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” book stores available in the factories;
  • welcome kits for those joining Pirelli at a facility in a country other than their home country.

For proper management of issues relating to the theme of equal opportunities, the monitoring by the Company of the level of acceptance and appreciation of diversity as perceived by employees in their own environment is critical. The survey is conducted as part of the My Voice Survey, conducted in local languages and at Group level (reference is made to the dedicated paragraph in this report).

The results of the survey conducted at the end of 2013 and communicated to employees in the first quarter of 2014 were particularly notable with regard to the high level of acceptance in the working environment of diversity, particularly gender, culture and sexual orientation. The indices related to these aspects are in fact significantly higher than the rate of Pirelli's Trust Index. 

The results of the survey conducted at the end of 2014 will be communicated to employees in the first quarter of 2015 and reported in the next Annual Report.

The Group Whistleblowing Procedure is a tool that supports compliance and internal control activities, as well as risk prevention. It is used specifically for reports of possible cases of corruption and/or violation of the principles or precepts set out in the Ethical Code, including those relating to equal opportunities.

Also during 2014 there were no reports concerning discriminatory issues. For further information on reports received in 2014, 2013 and 2012, reference is made to the paragraph "Group Reporting Procedure - Whistleblowing".

In terms of Advocacy, Pirelli has also been active for years in the enhancement of diversity externally, whether nationally or internationally. 

For years Pirelli has been Supporting Member of “Valore D”, the first association of large companies created in Italy to support women’s leadership in the company, with the aim of supporting and increasing the representation of female talent in top positions, through tangible and concrete actions.

The activities of “Valore D” in support of women's leadership is developed in three directions: toward women managers, Italian companies and society as a whole. The association promotes an innovative company organisation that exceeds the implicit prejudices related to gender and promotes reconciliation, provides women managers tools and knowledge for their professional growth and offers a new cultural model that involves the full participation of women in Italy's economic and social life.

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.

Pirelli is also committed to promoting welfare programmes for its own employees. For this purpose, it has created an ad hoc organisational function, the Welfare Group Manager with group level responsibility, confirming its growing attention to this issue. The Group has historically been supporting its own employees, with numerous measures calibrated to the different socio-cultural contexts in which the affiliates operate.

Very widespread measures include: day care centres offering special discounts, vacation assistance for employees' children, scholarships, healthcare benefits, prevention campaigns, discounts arrangements with various service providers (from medical visits to car rentals). More details are found in the section “Welfare and initiatives for the internal community” in this report.