Local communities
Electrolux acquired ten factories in Egypt and three factories in Chile and Argentina during 2011 and one facility in the Ukraine in 2010. Impact assessments were conducted preceding and following acquisition. See more at the case study LA10-12 Olympic strength.
In order to gain insight into Code of Conduct compliance and thereby identify operations with potential negative impacts on local communities, the Group operates an internal Code of Conduct audit program.
Of 29 plants located in risk-defined regions, 14 (10) were audited by a third party for compliance in 2011, including newly acquired plants in Egypt and Latin America.
No operations with significant negative impacts on local communities have been identified.
Restructuring
Electrolux is relocating over half of production to low-cost areas. The move from Motala, Sweden, Webster City, USA and Alcala, Spain, affected the employment of 1,870 (900) people during 2011. (See enclosed table).
The Group strives to be transparent and inclusive in its dealings on restructuring. Electrolux maintains dialog with local authorities, Workforce Development Agencies, and union representatives to develop a social plan for employees and mitigate potential negative impacts on communities. Social plans include early retirement schemes, training, severance pay, as well as internal and external job search support.
In the Electrolux experience, where feasible, supporting the search for investors to take over plants and provide jobs for employees has the greatest long-term benefits for both local community and those directly affected by the decision to restructure. This approach was most recently applied in Motala, Sweden and Alcala, Spain in 2011.
In Motala, approximately 51 of 255 employees have employment with new owner, Borö AB as of Q4 2011. At the same time, 70 have found other employment or are studying and another 26 went into early retirement. Support for the search for replacement jobs for the remaining 105 people continues. They are receiving requalification training and other job support in order to be hired either by the new owner or by external companies.
Alcala operations closed in the first quarter of 2011, and the factory transferred ownership to the Supermarket Chain Lidl. At the same time, 113 of 458 Electrolux employees were offered reemployment by the new owners of the site. Another 143 employees received either early or normal retirement packages and 202 found other job opportunities.
Reorganization
Starting in 2011, Electrolux is also in the process of reducing its staff due to downsizing and reorganizations. This affected some 2,000 employees in plants and offices in Argentina, Canada, Germany, Italy, Mexico, Sweden and the United States.These employees received support through individual packages and social plans. At year-end 2011 Electrolux announced further reorganizations in Major Appliances and Group functions, potentially affecting some 1,000 employees across all countries in Europe, and ongoing in 2012 and 2013.
For more information on the Group’s approach to mitigating impacts during restructuring. See Management approach: Society.
Supporting initiatives
Electrolux has continued to support its partners in Vac from the Sea, US-based Algalita and 5Gyres research organizations; both of which are on the frontline of researching and tackling plastic waste in the oceans.
Recycled plastic is a limited resource and by increasing proper collection and recycling, Electrolux can contribute to increasing the proportion of recycled content in products. During the year, Electrolux donated funds to Algalita and 5Gyres for every Green Range vacuum cleaner sold in Europe. In addition, €1 was donated for each “Like” it received on the Vac from the Sea Facebook page. Combined and at year-end, SEK 1.3m (€150,000) was contributed towards continued research. See more about how the Vac from the Sea theme has gone local in the above case study.
Electrolux in Latin America also joined the Colombian Government to help integrate ex-combatants from the guerrilla army into society by giving them vocational training. See more in the case study SO1 Leaving the rubber boots.
The company is an ongoing sponsor to AIESEC, the world’s largest student-run organization. This win-win cooperation helps Electrolux acquire talent, contributes to Group diversity goals and offers students internships within the Group’s world-wide organization. The size of the contribution per year is approximately SEK 600,000 (€75,000). Approximately 40 Internship positions were made available this year.
In the United States, Electrolux brand Frigidaire is a corporate partner in Save the Children’s CHANGE program. The company has thereby committed SEK 4.8m (USD 750,000) towards promoting healthier lifestyles for children living in poverty in the United States during 2011 and 2012. Frigidaire ambassador Jennifer Garner is engaging consumers in the campaign. In 2011, the brand has donated SEK 3.3m (USD 515,000). See more in the above video link.
Employee-led initiatives
Electrolux enhances its role by engaging in the priorities of the local community and encouraging its employees to do the same. Some examples include:
Asia Pacific: Electrolux Small Appliances, Major Appliances and Professional in Asia Pacific matched all funds colleagues donated to charitable organizations to aid victims of the Japanese earthquake. SEK 100,500 was donated during the year.
Australia: From June 2011, the Children's Cancer Institute of Australia was the primary charitable cause, and Electrolux matched donations of employees, totalling SEK 81,000 (AUD12,000). Over the course of the year, the company also donated products to other organisations valued at SEK 87,000 (AUD13,000).
Brazil: Employees were invited to share food provisions through more than 10 organizations. The institutions were nominated and selected by Electrolux staff members.
Philippines: Two Electrolux events collected donations of used clothes for Tabang Patrol and Sagip Kapamilya, charities that provide supplies to people affected by natural disasters. Ten pairs of Electrolux washers and dryers were on hand to clean a total of 10,000 kilos of donated clothing.
Sweden: Livslust (Joy of life), an initiative Electrolux co-founded in 1994, provides housing and vocational training for disadvantaged young people in Latvia. Electrolux provides appliances for its residential facilities and economic support.
The Electrolux personnel foundation contributes in-kind donations of time and expertise as well as monthly economic support. Every year Electrolux matches the contributions made by staff. SEK 106,000 were donated by the Group in 2011 (combined: SEK 212,000). Additionally, Electrolux sponsored the installation of a professional kitchen valued at SEK 400,000.
Thailand: Electrolux matched donations to help colleagues affected by 2011 flooding and to credible charitable organizations aiding in relief efforts in Thailand. Electrolux donations totaled SEK 98,000.