Human and Labor Rights

CNH Industrial respects and promotes human rights in keeping with national laws, the fundamental Conventions of the International Labour Organization (ILO), the UN’s Universal Declaration of Human Rights, and the OECD Guidelines for Multinational Enterprises.

In addition to setting out principles of professional conduct, the Company’s Code of Conduct also underscores the importance of respect for the individual.

The Company is committed to ensuring respect for fundamental human rights wherever it operates and seeks to promote respect for these principles by others where it has an influence, particularly contractors, suppliers, and all other entities and individuals with whom it has a business relationship. In fact, the Company will not establish or continue a relationship with an entity or individual that refuses to respect the principles of the Code.

CNH Industrial is opposed to any form of forced labor. The Company is committed to providing equal opportunities to all employees in the workplace and in their professional advancement, free from any form of discrimination, particularly that based on race, gender, disability, age, nationality, religious or personal convictions, or regarding other protected groups. CNH Industrial does not employ any form of child labor, meaning individuals younger than the legal working age in the country where the work is carried out, and, in any event, employs no one younger than fifteen, except where an exception is expressly provided by international conventions or local legislation.

CNH Industrial respects freedom of association. The Company recognizes the right of its employees to be represented by trade unions or other representatives established in accordance with local applicable legislation.

When engaging in negotiations with such representatives, CNH Industrial seeks a constructive approach and relationship (see also page 59).

The Company seeks to implement a variety of measures to help employees address human rights in the course of their regular work. Specifically, in 2014, approximately four hundred hours of training were given to over five hundred employees, focusing on human rights and on the principles of non-discrimination.

DIVERSITY AND EQUAL OPPORTUNITIES

The Code of Conduct confirms CNH Industrial’s commitment to offering all employees equal opportunities in the workplace and in their professional advancement. The head of Human Resources of each Region is responsible for ensuring that, in every aspect of the employment relationship, be it recruitment, training, compensation, promotion, relocation, or termination of employment, employees are treated on the basis of their ability to meet the requirements of the job.

The Company rejects all forms of discrimination, and specifically discrimination based on race, gender, sexual orientation, personal and social status, health, physical condition, disability, age, nationality, religious or personal beliefs and regarding other protected groups.

Offering career opportunities and advancement free from discrimination while encouraging and respecting diversity are among the commitments emphasized in the CNH Industrial Human Capital Management Guidelines and CNH Industrial Human Rights Policies available on the Corporate website and on the Intranet portal.

Given CNH Industrial’s global presence, there may be significant differences in legislation among countries where the Company operates, as well as different levels of awareness, concern, and ability among employees in applying the principles of non-discrimination. The Company Code of Conduct and specific policies ensure that the same standards are applied worldwide. Indeed, as stated in the Code of Conduct, Company standards supersede in jurisdictions where legislation is more lenient.

In addition, a variety of Company initiatives are in place to build awareness of the importance of a diverse and inclusive workforce. This is the case in the NAFTA Region, where a specific Equal Employment Opportunity Policy ensures that relationships with employees, applicants, suppliers, and subcontractors are non-discriminatory, that management practices are developed aiming at affirmative action goals in compliance with the law, and that a work environment is fostered free from discrimination and harassment.

The responsibility for diversity management lies with the heads of Human Resources of each Region, who report to the Chief Human Resources Officer, a member of the GEC. Each one of them is responsible for the overall implementation of the Code of Conduct, and for the internal and external communication of the principles of the Code and its policies. A Compliance Helpline was activated in 2014, i.e., a web platform managed by a third party, enabling customers to ask questions or report possible violations of the Code of Conduct, Company policies, or applicable laws (see also page 57).

Men and Women

The promotion of equal opportunities for men and women in the workplace is an objective shared by the Company and by employee representatives alike. This issue forms part of the social dialogue of each country, and follows local regulations and practices. In Italy, CNH Industrial legal entities with more than one hundred employees are required (under article 46 of Italian Legislative Decree no. 198 of April 11, 2006, and subsequent amendments) to present a report on male and female employment every two years.

In 2014, the report for the period 2012/2013 was presented to union representatives and to the Regional equal opportunities advisor. These complex and multifaceted reports contain information on, among other things, training, rates of pay, promotion, and turnover.

The specific collective labor agreement envisages the setting up of an equal opportunities commission in each CNH Industrial legal entities, made up of Company representatives and workers. The commission is tasked with: monitoring employment conditions for women (also with reference to the two-year report); studying the feasibility of, and implementing initiatives aimed at, promoting affirmative action and encouraging behaviors consistent with equal opportunity principles; preventing discrimination, including that linked to workers’ gender, race, or lifestyle; and examining any other disputes from an equal opportunity standpoint. It is worth mentioning that, of the 192 trade union agreements stipulated at Company level worldwide in 2014, nine also deal with equal opportunities matters (see page 105).

FEMALE EMPLOYEES 
CNH INDUSTRIAL WORLDWIDE 

FEMALE EMPLOYEES 

A study carried out in October 2014 on 99.8% of CNH Industrial’s workforce globally showed that around 20% of workers are represented by joint committees, i.e., organizations comprising Company and worker representatives, with expertise in equal opportunities. It should be noted that, within the scope of trade union agreements and joint bodies, the concept of equal opportunities is not limited to gender equality.

Women at CNH Industrial represent approximately 14% of the global workforce. In 2014, the percentage of women in the Company’s workforce increased by 3% over the previous year. There was an increase in women employees in all Regions (except APAC) compared with 2013. Despite a 10% increase, LATAM has less female employees (approximately 13%) compared to Company average, mainly due to the predominance of hourly employees, which represent 71% of the Region’s total workforce and of which the majority are men.

Specifically, female employment is concentrated in the 31 to 40-year age group, and among those with 6 to 10 years of employment at CNH Industrial.

The proportion of female workers in each employment category has remained more or less unchanged compared to the previous year, apart from an approximately 4% increase in women employees within the manager category.

As regards distribution by qualifications, 75% of female employees have a medium/high level of education (37% hold a university degree or equivalent, and 38% a high school diploma). About 73% of the Company’s par t-time employees are female, while only about 12% of fixed-term contracts are with women.

For more information, see the tables in the Appendix on pages 246-249.

Minorities

CNH Industrial’s commitment to diversity and inclusion involves a range of initiatives to help employees work in an open, flexible, and challenging environment. Studies are carried out every one or two years to monitor quantitative changes and improvements.

In 2014, a survey1 was carried out in 44 countries, covering 99% of the Company’s workforce, to monitor employment of disabled workers. The regulations in certain countries (including Austria, Brazil, France, Germany, Italy, and Spain) require companies to employ a minimum percentage of disabled workers, which may also vary in relation to the headcount of the company or plant, since in many cases the requirement is only applied to facilities with a headcount exceeding a certain threshold. These laws also give employers the alternative option of paying contributions to specific funds for the differently abled, or of establishing agreements with the relevant bodies for the phased-in hiring of these individuals, or of pursuing other arrangements specifically defined by legal provisions. The survey showed that in these countries (15 mapped, accounting for about 68% of the Company’s global workforce) disabled workers make up 3.3% of total employees (versus the 3.1% reported in the 2012 survey). This average is the result of different scenarios and of local legislation which establishes minimum quotas ranging from 1.6% to 7%. These are calculated on, or with reference to, the headcount.

The survey also showed that differently abled women account for 24% of the total surveyed, ten percentage points more than the percentage of total female employees in the entire workforce (14%). In many other countries (including Argentina, Australia, Belgium, Canada, Mexico, Poland, the UK, and the USA there is no legislation relating to the employment of disabled people that establishes minimum quotas, although in some cases other forms of protection exist (i.e., related to working hours or workplace environments, specific grants/benefits for companies employing differently abled workers, etc.). In these countries (29 mapped by the survey) there are objective limitations to reporting the number of disabled workers, as the information is sensitive and often subject to data protection legislation; as a result, the Company is only aware of an employee’s personal status if he/she chooses to disclose it.

In Brazil, due to the limited presence in the labor market of disabled workers and/or disabled workers with the skills necessary for employment, the FPT Industrial and Iveco plants in Sete Lagoas continued the Inclusão Eficiente (Efficient Inclusion) project launched in 2010 in collaboration with the Ministry of Labor. The project envisages twice yearly meetings between the Company and the relevant authorities and determines the number of disabled workers to be hired, together with the best approach (including training and educational programs) and timescale for their integration. It is envisaged that the program will be completed in 2015 with the fulfilment of all the remaining quotas for disabled employees.

In November 2012, Iveco France drew up a three-year agreement, with the approval of all five trade unions represented, which sets out specific policies and actions aimed at the recruitment, training, and development of differently abled people, along with their long-term employment. In Italy, in order to fulfill its obligations under Italian Law 68/99, various CNH Industrial legal entities defined or restarted the agreements process with the relevant authorities (suspended in previous years, in accordance with the law, due to the implementation of extraordinary temporary layoff benefits and collective redundancy schemes), designed to promote the inclusion of disabled people in the workforce. These agreements, provided for under current legislation, are a suitable mechanism for meeting society’s wish to find employment for differently abled people, in that they balance the needs of the individual with the organizational and productivity requirements of the company. However, persisting economic difficulties for some business lines, and the consequent recourse to extraordinary temporary layoff benefits and collective redundancy schemes at certain Company plants/sites, resulted in both the suspension of these obligations, under applicable law, and the deferment of hirings scheduled for certain plants/sites.

An employee nationality survey2 was carried out in 11 countries at CNH Industrial legal entities, comprising 85% of the Company’s workforce worldwide. The survey evidenced that 3% of employees (same percentage in 2013), evenly distributed between men and women, belonged to a nationality other than that of the country surveyed. As in previous years, Germany was once again the country where CNH Industrial legal entities employed the highest percentage of workers of a nationality other than that of the host country, with 9% non-German employees.

(1) The survey, carried out on October 31, 2014, is performed biannually.
(2) Survey carried out on October 31, 2014 in Argentina, Belgium, France, Germany, Italy, Poland, Canada, USA, Brazil, Spain, and the UK.

Managers of Local Nationality

CNH Industrial encourages the appointment of local managers in all countries. However, international appointments may be made if considered as development opportunities for talented individuals, or to bring specific skills and expertise to other countries. When that happens, the appointed manager is required to invest in the selection and development of a local successor. This also ensures that specific skills and expertise are successfully transferred across countries.

MANAGERS OF LOCAL NATIONALITY BY REGION

(%)201420132012
EMEA 82 81 80
NAFTA 91 91 91
LATAM 81 68 57
APAC 52 42 42

Based on a CNH Industrial worldwide survey, figures in EMEA and NAFTA in 2014 were consistent with the previous year, whereas in LATAM and APAC local managers increased by 19% and 24% respectively. For details, see also page 247.

    

CHILD LABOR 

As stated by the Code of Conduct, CNH Industrial does not employ child labor. Specifically, it does not employ people younger than the minimum legal age for employment in force where the work is carried out and, in any case, younger than fifteen, unless an exception is expressly provided for by international conventions and by local legislation. CNH Industrial is also committed to not establishing or maintaining working relationships with suppliers that employ child labor, as defined above (see also page 159).

In 2014, CNH Industrial surveyed 100% of its total workforce4 to assess the level of compliance with the Code of Conduct with regard to child labor, confirming that none of its legal entities employed individuals under the statutory minimum age for employment or apprenticeship set by local legislation.

The survey also showed that no minor under the age of 18 employed by CNH Industrial under a regular employment or apprenticeship contract was exposed to hazardous working conditions5.

(4) Study conducted on the total workforce as at October 31, 2014.
(5) For the purposes of the study, hazardous working conditions include: work with dangerous machinery, equipment or tools; the manual handling or transport of heavy loads; exposure to hazardous substances, agents or processes; exposure to health-damaging temperatures, noise levels, or vibrations; and work under particularly difficult conditions (long hours or night shifts).

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

Under the CNH Industrial Code of Conduct, Company employees are free to join a trade union, in compliance with local law and the regulations of the various trade union organizations.

CNH Industrial recognizes and respects the right of its employees to be represented by trade unions or other representatives established in accordance with applicable local legislation and practice.

In 2014 (figures as at October 31, 2014), a survey on unionization was carried out in 28 countries where CNH Industrial operates, and where, at the time the data was collected, 83.7% of the total workforce worldwide was employed. Freedom of association is regulated by country-specific legislation.

In certain countries (such as Australia, France, Germany, and Switzerland), surveys on the level of trade union representation cannot be conducted because union membership is considered an employee’s personal and private choice and, as such, is not communicated to the employer. In others (such as Denmark, Sweden, Norway, and Finland) this information can only be obtained following a request, with grounds, from the employer. At the time the survey was conducted, the countries excluded due to privacy data protection employed 15.6% of CNH Industrial employees, whilst the remaining countries not included in the survey employed 0.7% of the global CNH Industrial workforce.

It should be noted that, at the time of the survey, the countries with no employees affiliated with a trade union employed 1.2% of the population mapped.

UNION MEMBERSHIPa 

UNION MEMBERSHIP

(a) Survey carried out on October 31, 2014.
(b) In Austria, this information is permissible only in some legal entities. 68.1% of the workforce was mapped.
(c) Figures for Italy updated as at December 31, 2014.

Representative Bodies

Representative bodies, normally elected by workers at the plant concerned, have the right to be informed and/or consulted and/or to enter into negotiation on issues that, as defined by law or applicable collective agreements, may include health and safety in the workplace, wages and benefits, organizational issues (working hours, shifts, collective vacations, etc.), training, equal opportunities, company restructuring, collective redundancy, etc.

In the countries of the European Union, the establishment of employee representative bodies is envisaged for companies and/or sites where employee numbers exceed the minimum limits specified by national laws or procedures. In North America, these organizations are only present at sites where a trade union is already established. A survey carried out on October 31, 2014 in 47 countries, where 99.7% of CNH Industrial workers were employed, revealed the absence of any employee representative body in 23 of these countries (comprising only 0.8% of the sample surveyed). Worldwide, almost 78% of employees were covered by representative bodies.

Joint Committees

In October 2014, a survey conducted on 99.8% of all Company employees located in 44 countries showed that about 80% were represented by occupational health and safety joint committees (i.e., committees made up of company and worker representatives). Other joint committees with responsibility for equal opportunities, training, and pay were found to represent 20%, 9%, and 10%, respectively, of the employees surveyed. Moreover, 40% of those surveyed were represented by joint committees that deal with other issues, including:

  • Peer Review Committees for Suspension and Termination, in place at several locations in the USA and Canada.
    The Company has a Review Panel procedure in place for the timely resolution of eligible employees’ complaints about formal disciplinary actions, including suspensions and discharges. The Company may, at its sole discretion, exclude from panel review any formal disciplinary action that involves a violation of the Company’s discrimination, harassment, or workplace violence policies. A Review Panel consists of three employees and two supervisors, and is facilitated by a Plant Human Resources representative or other trained individual. The facilitator is not a voting member of the Panel, but is responsible for facilitating the Panel Review hearing and seeing that the process is administered in a fair, consistent, and orderly fashion
  • Joint Committees, mainly established in the EMEA Region, for the interpretation of collective agreements, the management of apprenticeships, and for social issues relating to single workers, housing, employee transportation, and cafeterias
  • Joint Committees focusing on Production Systems and Organization at plant and/or production unit level, with the aim of facilitating the implementation of initiatives to achieve shared goals such as the optimization of work station ergonomics, as well as joint committees overseeing absenteeism, established in Italy according to the Collective Labor Agreement (CLA).

 DISTRIBUTION OF JOINT COMMITTEES BY TYPE
CNH INDUSTRIAL WORLDWIDEa 

DISTRIBUTION OF JOINT COMMITTEES BY TYPE

(a) Data refers to the 44 countries covered by the survey.

    

GRI: 
G4-DMA; G4-HR2; G4-LA12; G4-LA12; G4-EC6; G4-HR4; G4-HR5; G4-LA5; G4-LA8;