We believe that our employees are responsible for their own career. It is the task of the management to ensure that the development of employees is not only relevant to their current position, but to their entire career. This will enhance their sustainable employability.
We have an annual performance cycle during which we monitor and assess the performance and development of our employees. The cycle starts by drawing up working objectives. Halfway through the cycle, a performance review takes place in which employee and manager evaluate the extent to which the objectives have been achieved. During this performance review meeting, the aspirations and required development of the employee will also be discussed. In the annual personnel review, these are then considered in relation to the growth opportunities that the manager sees for the employee. The annual appraisal – when the employee’s performance is assessed with regard to focus on results, knowledge and skills – forms the end of the cycle.
Terms of employment
Some of our employees are covered by a collective labour agreement drawn up on the basis consultations with the trade unions. Others are not covered by the collective labour agreement (see also: Opting out of the collective labour agreement). Both groups, however, are eligible for an annual individual pay rise of between 0 and 5%, up to the maximum pay level. In addition, a collective pay rise may be agreed on following a collective bargaining agreement.
As of 1 July 2013, we granted a structural collective pay rise for all employees in the Netherlands, regardless of whether they are covered by the collective agreement or not. We decided that this should take the form of an equal amount (€ 1,000) for everyone. This is because the relative pay levels in the company had become somewhat skewed over the years. In cooperation with the trade unions and the Works Council, we have initiated a joint inquiry into the possibility of setting up a new, more balanced reward structure, in which transparency, flexibility and alignment with the market are key.
Gasunie Deutschland applies the collective labour agreement agreed on by WEG (the German Association of German Oil & Gas Producers) and IGBCE (the trade union that makes salary agreements for the gas transport sector). This agreement covers 165 employees. The 84 employees in higher positions are covered by an agreement reached by Gasunie in the Netherlands and Gasunie Deutschland. The management team participates in the Gasunie’s company-wide target system.
In 2013, we reached agreement with our employees on a new pension scheme. One of the main considerations was that it should be in line with the market. As of 1 July 2013, the final-salary scheme was replaced by an average-salary scheme (collective defined contribution scheme). The company pays a ‘defined contribution’ (i.e., a premium agreed in advance), based on a conditional average salary. The scheme aims to achieve an annual accrual of 2% of the pension base.
Gasunie Deutschland has also introduced a new and competitive collective defined contribution pension scheme for everyone who joined the company in or after 2012.
Flexible terms of employment
As one of Gasunie’s terms of employment, employees receive an annual ‘flexibility budget’. Employees can use this budget in a number of different ways, at their own discretion. For instance, they can use it to buy spare time, or receive it as a cash payment.
Equal pay for men and women
Men and women doing the same job receive the same pay. But the average salary of women in our company is 8.7 % lower than the average salary of men: on average, women working full-time earn € 52,641 (men: € 57,678). This difference is due to the fact that relatively more men have reached their maximum salary, because they have been employed for longer. The maximum salaries within the various function groups are, of course, the same for both men and women.
Opting out of the Collective Labour Agreement
Of the total workforce in the Netherlands, 1,102 (76%) are covered by a collective labour agreement. Since 2008, we have offered those of our employees with at least higher secondary vocational education an opportunity to opt out of this agreement. This allows them to make flexible agreements on working hours. They are also eligible for a bonus if they reach agreed targets. In this way, we seek to encourage ‘managing on results’ rather than ‘managing on presence’.
Our employees’ pay depends partly on whether collective and/or individual targets are met. We set targets for those activities that are crucial in helping us implement our strategy, such as safety, finance, security of supply and corporate social responsibility. For those employees who are not covered by the collective labour agreement, the collective targets are converted into individual targets. If all targets are achieved in full, a bonus of € 500 (gross) is paid. If some but not all targets have been reached, the bonus is paid pro rata.
In 2013, not all collective targets were met. Based on the performance achieved, employees covered by the collective agreement and those in a ‘young development’ pay scale were paid a bonus of € 167. The bonus was paid to part-time employees pro rata.
|Target 2013||Achieved 2013|
|Number of reportables||< 4.0||3.6|
|Pipeline incidents||< 6||6|
|Operating costs||< € 326||303|
|Operating result||> € 954||963|
|Corporate Social Responsibility|
|No. of km (incl. lease)||3% reduction compared to 2012||5%|
New collective targets have been set for 2014. The operational target (a combination of safety and pipeline incidents) is being adjusted. For operating result, EBITDA will be replaced by ROIC. The CSR target will focus on reducing CO2 emissions.