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Wärtsilä's aim is to provide the best value and service to our customers by continuously developing our competencies and way of working. The strategic goal of Wärtsilä's social responsibility and people strategy is to bring the business strategy alive by developing Wärtsilä's organisation and competencies to meet the evolving business needs.

Our aim is to have energetic, competent, and motivated personnel with exciting and meaningful jobs and career opportunities led by excellent leaders. We recognise good performance and respect diversity. We also endeavour, by applying high standards of occupational health and safety, to offer a hazard-free workplace to our employees, contractors, and others working in different parts of the corporation.

Good corporate citizenship is accomplished through active co-operation, open communication, and good relationships with our stakeholders. Wärtsilä's operations and relations with its stakeholders are based on the company's Code of Conduct, with which each Wärtsilä company and individual is required to comply.

Structural changes in 2016 (G4-13)
As a response to the challenging global marine market situation, Wärtsilä started in July 2015 organisational adjustments in Marine Solutions with a plan to reduce 600 jobs globally, of which about 160 were planned to be in Finland. Wärtsilä implemented changes during 2016.

In April 2016, Wärtsilä announced further measures to adapt the organisation to the weakened new build market situation and the tough competitive environment in both the marine and energy markets. The organisational adjustments which signify the reduction of approximately 550 jobs, are concentrating in engine related R&D activities in Finland.

When fully implemented, these restructuring programmes are expected to result in annual savings of approximately EUR 90 million. Of the savings approximately EUR 60 million materialised by the end 2016, and the remainder are estimated to materialise by the end of 2017.

On 30 June 2016, Wärtsilä acquired American Hydro Corporation from Weir Group plc. Wärtsilä foresees that the acquisition will strengthen its presence in hydro and industrial services as well as support growth strategy and expansion in renewables, improving Wärtsilä's offering and services towards customers. The USA and Canada based company currently employ 241 people.

On 30 June 2016, Wärtsilä signed an agreement to acquire Eniram, a Finland-based technology company providing the marine industry with energy management and analytics solutions. Ownership of the company transferred to Wärtsilä with effect from 1 July 2016. The acquisition of Eniram enables Wärtsilä to grow and strengthen its existing digital offering and in-house capabilities, specifically in data analytics, modelling and performance optimisation. Eniram which is headquartered in Helsinki, Finland and has subsidiaries in the UK, the USA, Germany and Singapore has 89 employees worldwide.

In 2015 Wärtsilä and China State Shipbuilding Corporation (CSSC) reached an agreement to join forces in a new joint venture based on Wärtsilä’s 2-stroke engine business. In June 2016 Wärtsilä and CSSC have agreed to transfer Wärtsilä’s 30% minority stake in the two-stroke joint venture Winterthur Gas & Diesel (WinGD) to CSSC. Following the transaction, CSSC owns 100% of WinGD. The two-stroke operations have, until the divestment, been classified as discontinued operations.

On 30 June 2016 Wärtsilä sold its majority interest in Wärtsilä Ship Design Serbia to the operative management of the company. Wärtsilä Ship Design Serbia employed 31 employees.

In September 2016 Wärtsilä agreed to divest its power drives business to Finland based The Switch. The deal was closed in October 31.The divestment will encompass Wärtsilä’s Medium and Low Voltage power drives specialised for marine applications. The assets include the company’s test centre and parts of its manufacturing facilities in Stord, Norway. This business has earlier been a part of Wärtsilä’s Electrical & Automation (E&A) business line. Following the acquisition, the Switch will serve as one of the supply chain partners to Wärtsilä’s E&A business. 17 employees have changed employer from Wärtsilä to The Switch.
Employment
Personnel in 2016 (G4-10, G4-11, G4-LA1, G4-LA12)
In addition to direct employment, Wärtsilä employed also indirectly an external workforce totalling 2 876 man-years in subcontracting at its factories and units. The units located in Finland had a total personnel of 3 195 employees.

All in all, 2 680 employees left and 1 709 joined Wärtsilä globally during 2016 for different reasons. Wärtsilä had 18 011 employees at the end of 2016.
Personnel 2016 2015 2014 2013 2012
Number of employees at the end of the year 18 011 18 856 17 717 18 663 18 887
Personnel by business
Services 10 567 10 592 10 692 10 785 11 163
Marine Solutions 6 074 6 847 5 603 3 612 2 139
Energy Solutions 903 959 978 1 053 932
PowerTech * * * 2 449 3 811
Other 467 459 444 764 842
Personnel by market area
Europe 10 399 10 893 9 633 10 507 10 490
Asia 4 992 5 297 5 477 5 628 6 084
Americas 1 919 1 917 1 840 1 876 1 693
Africa 612 656 676 563 533
Other 89 92 91 89 87
Average age of employees 41.0 41.0 40.2 39.7 39.4
Permanent employees (%) 89 89 88 88 88
Temporary employees (%) 11 11 12 12 12
Full-time employees (%) 98 98 98 97 97
Part-time employees (%) 2 2 2 3 3
Employee turnover (resigned) (%) 5.3 5.2 6.2 7.7 6.9
Net employment creation -840 -755 -283 -477 -416
* PowerTech was merged into Marine Solutions in 2014
Number of employees by employment contract and gender in 2016 Permanent Temporary
Total 16 569 1 442
Male 14 151 1 226
Female 2 418 216
Permanent employees by employment contract type and gender in 2016 Full-time Part-time
Total 16 238 331
Male 14 032 281
Female 2 206 50
Total workforce by employees and supervised workers and by gender in 2016* Employees Supervised
workers
Total 18 011 1 091
Male 15 377 815
Female 2 634 276
* Total workforce includes Wärtsilä employees and supervised external employees.
Total workforce by market area in 2016*
Europe
Male 9 131
Female 1 889
Asia
Male 4 786
Female 617
Americas
Male 1 643
Female 319
Africa
Male 632
Female 85
* Total workforce includes Wärtsilä employees and supervised external employees.
New employee hires in 2016 Employees Rate (%)
Total 1 709 9.1
Gender
Male 1430 8.9
Female 279 9.9
Age group
< 30 years 643 20.7
30-50 819 7.0
> 50 years 247 6.0
Market area
Europe 561 5.1
Asia 546 10.2
Americas 429 22.4
Africa 173 25.5
Employee turnover (resigned) in 2016 Employees Rate (%)
Total 919 5.3
Gender
Male 782 5.3
Female 137 5.3
Age group
< 30 years 207 11.1
30-50 577 5.5
> 50 years 135 3.4
Market area
Europe 337 3.3
Asia 387 10.2
Americas 97 5.6
Africa 98 19.1
Benefits provided to full-time employees that are not provided to temporary or part-time employees (G4-LA2)
In general, temporary and part time employees are offered the same benefits as permanent employees. In some countries, eligibility is linked to months or years of service – such differences being typically based on collective agreements according to local legislation.

Labour/management relations
Minimum notice periods regarding operational changes (G4-LA4)
Wärtsilä way of working concerning minimum notice periods is described in the Employee Practices section.
Occupational health and safety
Percentage of total workforce represented in formal joint management-worker health and safety committees (G4-LA5)
Wärtsilä companies apply occupational health and safety programmes as required by local legislation, which are normally developed by occupational health and safety committees consisting of representatives of the companies' management and personnel. Altogether 81% of Wärtsilä companies have an occupational health and safety committee covering 94% of Wärtsilä’s employees.
Type of injuries and rates of injuries, occupational diseases, lost days and absenteeism, and total number of work-related fatalities (G4-LA6)
The positive trend in reducing lost time injuries continued. Wärtsilä achieved a good result in 2016, with a lost time frequency index of 9% below that of the previous year. There has been a continual lost time injury frequency reduction since year 2008.

However, Wärtsilä regrets to report a contractor fatality. A contracted male driver was transporting personnel to a power plant under Wärtsilä Operation & Maintenance agreement in Nigeria. The car crashed into a cement truck reversing into the express way. The driver lost his life in this car accident.
Injuries 2016 2015 2014 2013 2012
Total number of injuries 439 461 510 730 742
Number of lost time injuries resulting in at least
1 day absence, total
147 157 168 199 238
Number of lost time injuries – work-related 95 104 130 162 194
Number of lost time injuries – commuting 52 53 38 37 44
Lost time injuries / million working hours 2.6 2.8 3.5 4.4 5.5
Absence rate
Absence due to illness (% of total working hours) 2.2 1.9 2.0 2.1 2.0
Absence due to lost time injury
(% of total working hours)
0.1 0.1 0.1 0.1 0.1
Absence due to occupational diseases
(% of total working hours)
0.0 0.0 0.0 0.0 0.0
Fatalities
Number of fatalities, total 1 1 5 1 0
Employees 0 1 3 1 0
Contractors 1 0 2 0 0
Workers with high incidence or high risk of diseases related to their occupation (G4-LA7)
Wärtsilä employees constantly work close to the running engines while conducting overhaul operations or testing engines, which exposes them to high levels of noise. Wärtsilä has occupational safety and health programmes in place to prevent hearing loss, including providing hearing protectors to those employees under risk of hearing loss.

Training and education
Average hours of training per year (G4-LA9)
Wärtsilä's average number of training days in 2016 for male employees was 3.2 and for female employees 2.8.
Training days/employee 2016 2015 2014 2013 2012
All employees 3.0 3.0 4.2 4.1 3.4
Managers and superiors 3.7 3.5 5.1 4.6 3.3
Other white-collar employees 2.9 2.9 3.5 4.1 3.9
Blue-collar employees 3.0 3.1 4.4 3.6 3.0
Programmes for skills management and lifelong learning (G4-LA10)
Wärtsilä programmes for skills management is described in People Management section. Wärtsilä offers a wide variety of internal training courses for its employees, covering over 20 training categories. These include topics like engine technology, health and safety, language and culture, project management, environment, security, and leadership.
Percentage of employees receiving regular performance and career development reviews (G4-LA11)
Development discussions held annually 2016 2015 2014 2013 2012
Coverage % 96 92 92 91 84
Diversity and Equal opportunity
Composition of governance bodies and breakdown of employees (G4-LA12)
A diverse workforce generates higher profits, better complex problem-solving skills, and access to a larger talent pool. Wärtsilä’s Diversity Initiative began in 2012 and aims to drive an inclusive corporate culture at all levels to meet global requirements in the corporation. By investing in diversity and supporting employees of varied gender, age, personality, and educational background, Wärtsilä becomes a more innovative business partner as well as a more attractive employer.
Gender diversity 2016 2015 2014 2013 2012
Male/female ratio (%) 84/16 85/15 86/14 85/15 84/16
Executive positions globally: male/female ratio (%) 89/11 89/11 90/10 90/10 90/9
Regional diversity
Number of nationalities 134 131 122 120 107
Product and Service Labelling
Results of surveys measuring customer satisfaction (G4-PR5)
In order to put the needs of customers always first, Wärtsilä carefully listens and acts upon customer feedback, at both operative and management levels. Wärtsilä places great emphasis on earning long-term customer trust through keeping its promises. While challenges may arise at any time in this business, relationships are strengthened by focusing on customer satisfaction and loyalty.

Customer feedback on project deliveries and the operation of their installations, is welcomed. To know what works and where to improve, as well as understanding the customers’ operational environments, is critical in developing the company’s products and services. To ensure customer satisfaction, their feedback is systematically reviewed and the needed actions are taken. In addition, Wärtsilä collects feedback during different events, activities, and interactions with its customers.
Customer satisfaction 2016 2015 2014
Marine Solutions 76% 75% 78%
Services 90% 89% 89%
Energy Solutions 97% 95% 88%
Sample 4 899 4 312 4 118
Customer satisfaction percentage is based on one question: Are you satisfied with Wärtsilä overall performance? Answering options: Satisfied, Neutral or Dissatisfied. Percentage shows Satisfied as part of total answered.

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