Social

AMG stakeholders remain central to AMG’s business. People & Diversity, Human Rights and Safety are the primary focus of AMG’s approach to maintaining a sustainable business for our people. We invest in our people to develop their skills and provide training in critical areas like technical and professional development, quality, anti-corruption policies, human rights policies and health and safety. AMG respects the rights and freedoms for individual employees to freely make choices about their career as described in Article 23 of the Universal Declaration of Human Rights. Encompassing these efforts is AMG’s commitment to achieving the highest standards of safety and environmental conduct at all of its manufacturing facilities, and producing materials that help its customers to minimize negative environmental impact.

More details on key social aspects are found in the sections below:

Safety

Our Belief
Nothing is more important to AMG than the safety, health and well-being of our workers and their families, and the protection of the environment. All injuries and occupational illnesses are preventable and there is no job worth doing in an unsafe or environmentally harmful way.

We are a team treating everyone with respect and building trust. We listen to understand safety, health and environmental issues, while supporting each other to work in a safe and healthy manner and in compliance with all local and national rules and regulations. We are courageous leaders who act with a sense of urgency to eliminate or effectively control safety, health and environmental hazards and risk.

Our Commitment

  • To continuously identify and implement safe and healthy ways to do the job
  • To hold each other accountable for superior health and safety practices
  • To keep protection of safety, health and the environment as a value that drives overall performance
  • There is no task so important that it puts the safety and health of employees at risk
  • To provide the leadership and resources needed to achieve our vision
  • To encourage each other to be champions of safety and health both at work and at home
  • To maintain a high degree of emergency preparedness

Formal safety management systems continue to play an important role in achieving zero harm to employees, and 15 of AMG’s larger sites are OHSAS 18001 certified. In 2017, 88% of the AMG workforce was represented in formal health and safety committees, which are in place at every major production facility and many of the smaller facilities. In these committees, representatives from all levels of the organization become pivotal decision makers regarding safety at their respective facilities. Given the high level of engagement within the labor force, the average absenteeism rate across AMG was 2.97%.

AMG regrets to report that in 2017, a male employee suffered a fatal injury at the Sri Lanka graphite mine while in the organization’s employ. AMG’s aspirational goal is to become a zero lost time incidents workplace—we cannot accept that any incident is inevitable. Since 2008, there has been year-over-year safety improvement across AMG. For AMG, the total lost time incident rate improved 21% from 1.04 in 2016 to 0.82 in 2017.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
403-2 Lost Time Accident Rates Total 1.19 0.85 0.58 0.74 1.04 0.82
403-2 Incident Rates Total 1.72 1.42 1.64 1.04 1.68 1.31

Human Rights

Protection of internationally proclaimed human rights is an area in which AMG is both highly aware and fully committed, and the Company strives to make sure it is not complicit in human rights abuses. Each AMG site is assessed during site visits and internal audits to identify if there is the possibility of freedom of association or collective bargaining being put at risk because of political or business factors. In 2017, it was found that no sites were at risk, except for China, where the formation of unions remains restricted. Similarly, the Company has reviewed sites to ensure that they are not at risk for employing child labor or exposing young workers to hazards. No sites have been identified that pose a risk at this time. AMG also aims to ensure rights are protected in our supply chain through its Supplier Code of Conduct. Our policy on human rights is included in the AMG Code of Business Conduct and Ethics and detailed in the Company’s human rights policy; all are available on the AMG website.

The rights and freedoms for individual employees to join, or choose not to join, unions, as described in Article 23 of the Universal Declaration of Human Rights, are fully respected by AMG. Across AMG, 1,981 employees (66%) were covered by such collective bargaining agreements. 72% of AMG Critical Materials employees are covered by these arrangements, while AMG Engineering, which includes a higher proportion of professional salaried staff, has 51% of its employees covered. Once again, in 2017, AMG facilities had no strikes or lockouts.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
102-41 Employees Covered by Collective Bargaining Agreements  % 72 72 52 51 67 66

People & Diversity

AMG assesses the diversity of its workforce in terms of gender and age, but not ethnicity. The multinational, and therefore multicultural, nature of AMG’s business means that ethnic diversity is significant, but it is not possible to define minority employees in every environment. Of the total employees, 16% are female; 18% are under thirty years of age, 54% are between thirty and fifty, and 28% are over fifty. The Management Board’s composition is 100% male. The Supervisory Board’s composition was 78% male and 22% female as of the end of 2017.

AMG has adopted a Diversity Policy in relation to the composition of its Management Board and Supervisory Board. AMG will continue to take its key diversity objectives, including maintaining a proper balance of nationalities and the gender allocation of seats, into account in connection with recruitment, retention of employees and succession planning. In 2017, the Management Board deployed measures to attract and maintain a diverse workforce at its units by, among other things, linking incentives for unit managers to meaningful results in diversity targets. We believe in promoting and growing our leaders internally. The promotion of Ms. Michele Fischer to President of AMG Aluminum expanded the diversity of our top leadership.

AMG also collects data on the hours we invest in our people to develop their skills. The categories of training include technical and professional development, quality, anti-corruption policies, human rights policies and health and safety. This is important for our safety, environmental, and ethics programs, and for maintaining our technical competitive advantage. In 2017, AMG provided training to the following labor groups: management (147 employees trained, averaging 22.8 hours per person), professional, technical, sales, administration (1,059 employees trained, averaging 52.3 hours per person), and production and maintenance (1,727 employees trained, averaging 44.8 hours). Across all the reporting sites in 2017, AMG employees received an average of 45.8 hours of training time (approximately 2.7% of total hours worked).

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
102-8 Workforce Total  2,110 2,210 778 772 2,888 2,982
404-1 Average Hours of Training per Year Per person 25.1 45.8 49.2 45.6 32.3 45.8
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