1. child labour
2. forced labour
3. health and safety
4. freedom of association and right to organise
5. discrimination
6. disciplinary practices
7. working hours
8. remuneration
9. management system

Midac spa in its management system policy has set the objective of creating all the necessary presuppositions so that the required requisites for social responsibility are respected and controlled by creating or improving internal professional figures able to perceive these concepts putting them into practice and improving social requisites.

PROCEDURE FOR COMPLAINTS RELATED TO THE SOCIAL RESPONSIBILITY REQUISITES

The objectives set out in the corporate management system policy consider involvement by all interested parties, and in particular create the presuppositions so that all complaints or suggestions related to the corporate social responsibility requisites are acknowledged and understood by management and key staff, are managed conforming to the established procedures allowing for necessary corrective action which is then communicated to all interested parties.
Any external party is free to inform the company on acts or facts which do not conform to the management system policy, and in particular concerning corporate social responsibility requisites.
All interested parties may advise their personal comments on how they see the company’s commitment by providing, for example, useful suggestions concerning communication tools or procedures.

The communication channel is the company’s e-mail address:
midac@midacbatteries.com

In the field cell “Subject” please indicate:
”COMPLAINT (OR SUGGESTIONS) RELATED TO CORPORATE SOCIAL RESPONSIBILITY”

The information provided will be evaluated as soon as possible by the Board’s representative for issues related to corporate social responsibility (CSR), and who, after having conferred with other members of management concerned with the question, will evaluate the information and reply providing the below information:

• data of receipt of the complaint and / or suggestion;
• complaint assessment results;
• established preventive and corrective actions;
• other communications considered necessary;

SOCIAL INDICATORS AND CORPORATE SOCIAL REPORT

Midac spa is setting up a channel for communicating its social performances to all interested parties providing information on the efforts and commitment the company has toward work ethics.
Using the management system policy and primary objective data, the social performance indicators related to all applicable requisites are assessed and established.
Midac’s Board would like to use this space to illustrate its corporate social objectives by making available the measuring tools and established actions used for achieving its social objectives.
In this way, Midac intends to communicate gradually, which is inevitable when talking about an ambitious and important project, to all interested parties the information what will be transformed into the company's corporate social report.



OCCUPATIONAL HEALTH AND SAFETY AT WORK

The auditing programme for our Occupational Health and Safety Management system (OHSMS) is focused mainly on the following points:

• Analysing working conditions of the employee;
• Analysing information on injuries and accidents:
• Improve the level of safety of site machines and plants;
• Updating risk assessment document;
• Compliance to standards;
• Training the emergency response team and organising simulations.

Safety has become a major issue in work management to guarantee all employees or whoever is involved in company activities on company premises, a safe and healthy workplace.

Different measures have been adopted to avoid accidents, injuries and other hazards.
The main measures are:

• The employee union representatives are involved in many of the various processes in safety management (monitoring risks, identifying measures, training);
• Employee Health and Safety Officers have been nominated;
• A restructuring and renovation plan for company structures and facilities has been established, ongoing monitoring of machines and plants to ensure and verify suitability and safety as well as monitoring the emission of toxic substances and controlling noise levels;
• Responsibility, procedures, operational instructions have been provided in an internal employee handbook to help and to inform employees about their daily duties, responsibilities and how they should behave at work;
• Evacuation and fire fighting plans have been defined including a number of emergency plans for dealing with hazardous and critical situations;
• A health surveillance plan for employees has been established and consists of specific medical visits (laboratory and instrument tests) for each single job role;
• Every year the company organises and runs health and safety training courses for all employees.

Thanks to a strategy aimed at safeguarding the health and safety of employees, and of whoever is involved in company activities, and to the reduction in risk of accidents, we have registered a substantial drop in the number of occupational injuries and illnesses.
In 2007 indicators related to frequency and other indicators related to injuries suffered a significant decline: hours worked is greatly increased, indicating a reduction in the frequency of occurrence of accidents; also days lost to injury accidents decreased denoting of gravity lower.
Management and all other parties involved pay extreme attention to all results, whether related to injury or accident, so as to control and monitor all risk factors and cases.

The rate of frequency is below the national INAIL (Italian Department for Employee Insurance and Accidents in the workplace ) reference rate (45.96).
This improvement in health and safety is the result of the accident prevention programme 2008 , and is the result of an increase in employee awareness of health and safety risks, health and safety orientated training courses, and the provision of personal protective equipment (PPE) to workers.
Accident prevention and training programmes have been defined and established in collaboration with the employee union representatives.
Every year in-house health and safety orientated courses are organised and run for all company employees.
All our factory workers are provided with suitable and appropriate personal protective equipment (PPE).
Aimed at increasing awareness we have issued to all factory workers, together with their pay packet, a specifically designed questionnaire to be completed and left in the box located near the changing rooms for collection by a company member.
These questionnaires are collected when company management meet to review the management system and objectives.


The obligatory objectives to achieve to improve health and safety at work are:

• Analysing working conditions of the employee (work environment, formal complaints etc.) by achieving the objectives established concerning:
o Average blood lead level.
o Concentration of lead in the atmosphere.
o Improved awareness of employees regarding health in the workplace .
o Acknowledgment of the occupational doctor’s opinion related to the health of the employee.
o Acknowledgement of the information provided by the employee health and safety officers.

• Analysing information on injuries and accidents by achieving the objectives established concerning:
o Frequency results lower than the average for this industry sector as established by the National Institute for Industrial Accident Insurance
o Acknowledgement of information related to accidents in production and in the offices

• Improving the level of safety of site machines and plants by achieving the objectives established concerning:
o Reduction in risk of injury .
o Updating the risk assessment document (manual handling of loads) by achieving the objectives established concerning:
o Updating areas identified as at risk during the yearly prevention and protection meeting.

•Compliance to standards and regulations by achieving the objectives established concerning compliance to existing legalisation and acknowledgment of future directives.

• Training the emergency response team and organising simulations by achieving the objectives established concerning:.
o Increase in response time in the event of an emergency situation due to simulations established in the monitoring plan.

CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT PROCESS (CSR)

Process analysis of corporate social responsibility management are provided by the
SA 8000:2001

• Child labour
• Forced labour
• Health and safety at work
• Workers’ freedom of association and right to organise;
• Discrimination
• Disciplinary procedures;
• Working hours;
• Remuneration - salaries;
• Management system, more specifically monitoring::
o Employee satiscfaction;
o Training and information;
o Suppliers and supplier criticality.

The company’s strategic objectives on these issues are:

PREVENTION OF CHILD LABOUR

The company has no intention to use or promote child labour. A number of plans have been designed and implemented to ensure support to children who are involved in child labour.
These plans are focused on ensuring children go to school and are not exposed to hazardous, unsafe or harmful situations or subjected to conditions which can lead to physical, emotional and psychological damage.
In the event young workers are employed, they are not exposed to hazardous, unsafe or harmful situations to their health.

PREVENTION OF FORCED LABOUR

All our employees voluntarily agree to work. The company does not in any way accept that workers are forced to work under threat of penalty.
To ensure that workers voluntarily agree to offer their services, the company guarantees that all workers are informed and understand in full their rights and duties under their employment contract.

None of our workers has ever deposited money or copies of original documents with the company. The company intends to inform all current and future employees on social responsibility and requisites.
Considering the company’s current policy and activities, we believe the objectives to achieve to promote improvement are:
• provide information and raise awareness in employees regarding voluntariness in their jobs by achieving the objectives established concerning:
o Ensuring the employee training plan is met.

• Monitoring social requisites within the company by achieving the objectives established concerning:
o A yearly survey on social requisites within the company.

WORKERS’ FREEDOM OF ASSOCIATION AND RIGHT TO ORGANISE

The company respects the right of all workers to organise or become a member of a trade union of their choice and their right to collective bargaining.
The union representatives elected by the workers are not subject to any form of discrimination and can discuss and talk to workers freely in the workplace.
Specific areas on company premises have been provided for union communications and for holding union meetings which are organised throughout the year.




Concerning the specific responsibilities within the company, this approach to communicating with the union organisations has encouraged and promoted a mentality orientated toward solving problems by involving all parties.

All employment contracts are defined referring to the collective employment contract related to the industry category in question, guaranteeing greater standardisation of employment contracts within the company.

PREVENTION OF ANY FORM OF DISCRIMINATION

The company guarantees equal opportunities to all employees and any form of discrimination is unacceptable.
• New employees are hired utilising an objective criteria concerning education and training, experience and skills related to the position offered.
• Salaries are based on the National Collective Employment Contract for the industry category in question and also on agreements reached between the company and the union organisations. The same regulatory sources regulate disciplinary actions, promotion, redundancy and retirement.
• Training is guaranteed and based on the company’s requirements. Training courses on OHS and social responsibility are organised for all the company’s employees whatever position and role held.
• The company does not interfere with the freedom of each single employee to follow his/her principals.
• The integrity of the employees is safeguarded and offensive behaviour and personal harassment is unacceptable.

The number of female employees in the company is fairly low. The company has assessed the risks related to female employees resulting in the decision not to employ women in production.
The women within the company organisation cover managerial roles and office positions, and their number has increased dramatically over the last three years.
However, there are no women executive directors.
The company analysing these results has decided to maintain the current number of female employees.




The number of non-European Community workers is slightly higher than the national average and industry category average, as a result of the volume of labour offered locally, in particular factory workers.
Given the current local situation the objective is to retain and maintain the current number of non-European Community workers.




Considering the company’s current policy and activities, we believe the objectives to achieve to promote improvement are:
• Monitor the “minority” categories within the company by evaluating the characteristics related to the product and labour offered, by achieving the objectives established concerning:
o Creating external communication channels (web site etc) to provide precise information concerning corporate policy related to the prevention of discrimination within the company organisation.
o Identifying specific informative channels to monitor the average presence of the various worker categories within companies in the same industry sector.
o Retaining women employees in the company
o Retaining non-EU employees in the company.

CONTROLLING DISCIPLINARY PRACTICES

The company implements the disciplinary code provided for under the National Collective Employment Contract for the industry in question, and which is affixed to the notice board for internal communications and memos. It describes existing disciplinary practices and promotes respect and spirit of collaboration between workers.
Recourse to disciplinary actions has always been very limited as a result of the good relations within the company.
The number of formal complaints filed for acts of physical and verbal abuse, sexual harassment between the company and its workers and between workers (complaints can be presented anonymously) is currently zero.
The company is concluding a training programme for all its employees aimed at illustrating how to file a complaint and complaint management methods. All complaints on work ethics, placed in the box provided, will be addressed by the employee representative for safety who has been nominated to cover this responsibility.





To raise awareness in the employees regarding existing disciplinary practices and actions a questionnaire to be completed will be distributed to all employees together in their pay packet and can be left in the box provided near the changing rooms for collection.
Considering the company’s current policy and activities, we believe the objectives to achieve to promote improvement are:
• Raise awareness and inform employees on the disciplinary practices and actions within the company by achieving the objectives established concerning:
o Ensuring the employee training plan is met.
o A yearly survey on social requisites within the company.

CONTROLLING WORKING HOURS

Regular working hours for office staff are from Monday to Friday from 08:30 to 12:30 and from 13:30 to 17:30. The company allows a certain flexibility in respect to regular working hours.
Working hours for production shifts, always from Monday to Friday are:
• from 06:00 to 14:00 with half an hour lunch break:
• from 14:00 to 22:00 with half an hour break:
• from 22:00 to 06:00 with half an hour break and when required due to specific production requirements.

For production workers, and in particular for the warehouse (logistics) working hours can be from 08:00 to 12:00 and from 13:00 to 17:00.
The working week as defined by the National Collective Employment Contract for this industry sector consists of 40 hours.
Any changes to the working hours during a week, holiday leave and other forms of leave are agreed upon with the workers.
Overtime work is for short periods of time and for exceptional production situations which cannot be satisfied by simply hiring new staff. Overtime is agreed upon between the worker and head of department and never exceeds the restrictions provided for under the National Collective Employment Contract.




Overtime work is paid as provided for under the National Collective Employment Contract.
Considering the company’s current policy and activities, we believe the objectives to achieve to promote improvement are:
• Maintain the number of overtime hours (total and per worker) by achieving the objectives established concerning:
o Ongoing improvement in the company’s organisation considering the yearly value stream for manufacturing related to production performances.

CONTROLLING REMUNERATION

The company pays its employees a salary higher than the minimum salaries defined in the National Collective Employment Contract for the industry sector in question as agreed upon with the trade unions in the employment contract addendum.
The salaries paid are sufficient to satisfy the fundamental needs of the workers and to provide them with reasonable earnings.

The payslip provides information on gross pay and the various contributions deducted. The company does not withhold pay as a disciplinary practice or action.
The employment contracts are:
• permanent employment contract:
• temporary employment contract.

The permanent employment contract is the most utilised contract in the company, whereas temporary employments contracts are less frequent.
The average salary paid conforms to what is provided for under the National Collective Employment Contract. A further additional sum is added to the base salary which is defined by the national contract, as agreed in the company addendum to the employment contract.
As ongoing company policy, the company also pays production bonuses when the production objectives, defined and established on a yearly basis by company management, are achieved.
Considering the company’s current policy and activities, we believe the objectives to achieve to promote improvement are:

• Maintaining the buying power of the lowest salaries for factory workers by achieving the objectives established concerning:
o Maintaining the average salary for factory workers.
o Maintaining and improving the current salary system, based on the National Employment Contract for the industry sector and on the company addendum to the employment contract (14 months salary and result bonus)

• Raise awareness in employees regarding the company’s production bonus system by achieving the objectives established concerning:
o Staff (office workers / managers and factory workers / specialised) satisfaction rate higher than 66%
o Periodic employee training on social responsibility (including health and safety).

CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT

The company has a CSR management system conforming to the SA8000:2001 standards, and attained certification in December 2004.
Company employees, trade unions, customers, institutions and suppliers are considered parties which are linked to the company and are directly involved in company life.
Company employees have understood the importance of this standard as part of company life, thanks to training programmes held during work hours aimed at raising awareness to this issue, and to the information provided by the company.

During the process to obtain SA8000 certification, specific attention was paid to the capacity of suppliers/subcontractors and sub-suppliers to meet the requisites required under this standard, not just because it is explicitly requested under the standard, but to deliver essential cornerstones of social responsibility, acknowledged at a global level, throughout the entire supply and production chain.
Through mapping critical activities, a supplier monitoring plan has been established.
In 2008 the company intends to repeat the programme of audits at those suppliers who have shown an interest in improving their system management processes and to adapt them to this standard by correcting and improving aspects within the system considered critical.




The company also intends to extend the SA8000:2001 cornerstones to all its suppliers so that they satisfy the requirements and requisites of this standard.
Each year the company will issue its CSR policy to all its suppliers.
Sharing the CSR policy with its suppliers, the company would like to share issues considered cornerstones for encouraging and promoting a correct and beneficial relationship between Midac spa and its suppliers.




When deciding supply contracts all those companies that satisfy the SA8000:2001 requirements and demonstrate their willingness to improve their system management, will have preferential treatment.
To facilitate supplier reviewing processes a number of indicators have been established to highlight achievement of objectives and defining and establishing new objectives.
The indicators utilised for internal auditing form the main structure of this document which has been chosen by company management as the essential communication channel to provide data and information on company performance related to the requisites of the standard.

Company performance and company objectives will be above all communicated through the company’s web site
and when considered necessary through local media channels.

Considering the company’s current policy and activities, we believe the objectives to achieve to promote improvement are:

• Adapting suppliers’ management systems to the requisites of this standard by achieving the objectives established concerning:
o Programme of audits at suppliers considered critical under the defined control plan.
o Performing audits at suppliers identified in the control plan.
o Defining the necessary resources for visiting and monitoring suppliers.
o Issuing a copy of the CSR policy to all suppliers.

• Organise and run training programmes for employees on social responsibility (including health and safety).

• Modify the web site so as to deliver information on:
o The procedure for filing external complaints and suggestions.
o System management objectives.
o CSR policy.