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European Works Council Sodexo
Montigny-le-Bretonneux, 30, 31 May and 1 June 2017 1
European Works Council Meeting
30th
, 31st of May and 1
st of June 2017
Agenda
30 MAY 2017 3 I. Training for new members ........................................................................................ 3
II. Welcome to all members ........................................................................................... 3
III. Overview of each country and the Select Committee's activities ............................. 3
IV. Group Financial Results for the 2015/2016 fiscal year and H1 2016/2017 .............. 4
31 MAY 2017 9 I. On-Site Services Group Strategy .............................................................................. 9
II. Personal and Home Services ................................................................................... 12
III. Benefits & Rewards Services .................................................................................. 13
IV. 50 years of HR at Sodexo ........................................................................................ 15
V. Stop Hunger Initiatives ............................................................................................ 16
VI. Engagement Survey 2016 ........................................................................................ 17
1 JUNE 2017 19 I. Initiatives on Diversity and Inclusion ..................................................................... 19
II. Group Health & Safety ............................................................................................ 20
III. Work Programme for the European Works Council over the next year ................. 23
IV. Conclusion of the plenary session ........................................................................... 24
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In attendance:
Management
Bertrand DELAMOTTE Europe Labor Relations Vice President
Virginia JEANSON Group Financial Communications Vice President
Pierre HENRY Group Executive Committee Vice President
Steve PANGBURN Europe Chief Financial Officer,
Denis MACHUEL BR & PHS & Group Digital Chief Executive Officer
Didier SANDOZ Sodexo Benefits and Rewards Services Western Europe,
Mediterranean and International Development President
Elisabeth CARPENTIER Group Special Advisor
Mathilde LOING Europe, Stop Hunger Project, Director
Henri VAN ELEWYCK Group Ethics, Research & HR Progress Vice President
Satu HESCHUNG Global Diversity & Inclusion Vice President
Natasha OMELCHENKO Global Health & Safety Reward Program Director,
Arnaud AICARDI Health and Safety Project Leader, Group
Philippe LAURENT Health and Safety Project Leader, France
Ronan LE SAEC Health and Safety Project Leader, France
Employee Representatives
Claudia KIRCHNER Germany
Michel BRUNFAUT Belgium
Jane N. LARSEN Denmark
Alejandro ALONSO Spain (Select Committee member)
Sirpa ALY Finland (Select Committee member)
Gérard LE MAILLOT France (General Secretary)
Olivier MARCHAND France
Henri VICAIRE France
Andrew McGINLEY Ireland
Vanda BERNARDINI Italy
Michel BIGNOLI Luxembourg
Susanne DIRKS DAHL Norway
Wim HEITE Netherlands
Marcin HABERA Poland
Jana CHOMOVA Czech Republic
Maria Ionela MANESCU Romania
Douglas INMAN United Kingdom
Paul LAVERY United Kingdom
Emma LONGMATE United Kingdom
Guiseppe VACCARO United Kingdom
Mojka SIKER Slovenia
Peter HJORT Sweden
Kerstin HOWALD EFFAT European Federation of Food, Agriculture and
Tourism Trade Unions
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30 MAY 2017
I. Training for new members
10 AM to 12 PM For the fourth year now, any new EWC member is provided with an information
session on labour relations in Europe and on the working principles of a European Works Council,
delivered by Planet Labor and a former EWC member on the Council at the time of the EWC's
start, and now an employee representative on the Board of Directors, Philippe Besson. Also in
attendance was Gérard Le Maillot, Secretary General, to welcome the new members.
II. Welcome to all members
Bertrand DELAMOTTE (Europe) greeted all members, with a special welcome for the 8 new
members, as well as Kerstin HOWALD from EFFAT, attending as a guest.
Gérard Le Maillot, Secretary General, said a word of welcome to all participants and thanked them
for attending.
The safety instructions were briefly reviewed.
III. Overview of each country and the Select Committee's activities
2 PM Start of session without Management Gérard Le Maillot, Secretary General, facilitated this
part of the meeting, during which the country fact sheets and EWC Select Committee's activities
over the past year were presented. Time was also taken so that members could introduce themselves
in turn.
1. Country fact sheets reviewed
France/United
Kingdom/Ireland/Denmark/Sweden/Spain/Italy/Poland/Finland/Slovenia/Romania/Benelux
(Belgium, Luxembourg, Netherlands)/DACH (Germany, Austria and Switzerland)/Czech
Republic/Slovakia/Norway
2. Select Committee Activities
The Select Committee's new membership is confirmed as follows:
Secretary: Gérard LE MAILLOT (France) with 1st deputy: Alejandro ALONSO (Spain) with 2
nd
deputy: Sirpa ALY (Finland)
Substitute members: 3rd
deputy: Olivier MARCHAND (France)
Presentation of the European Works Council's new website, by Gérard Le Maillot, Secretary
General
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3. Presentation by Kerstin HOWALD (EFFAT)
IV. Group Financial Results for the 2015/2016 fiscal year and H1 2016/2017
3:45pm: Start of session with Management Bertrand DELAMOTTE (Europe) introduced Virginia
JEANSON, Group Financial Communications Vice President
1. Highlights of 2015/2016 fiscal year
Virginia JEANSON (Group) reported that theGroup’s revenue amounted to €20.2 billion,while
organic growth amounted to 2.5%. Operating income improved by 8.2%, while operating margin
rose by 30 base points. Thanks to segmentation, new business opportunities have emerged. A
customer-focused approach has also been adopted, including in particular the development of
innovative digital solutions. The Group concurrently worked to seize upon any external growth
opportunities. Lastly, its commitments on CSR have enjoyed recognition.
Sodexo's organic growth and operating margin, on the other hand, lag behind those of its
competitors. Compass, for instance, posted margin of 7.4%.
Issuance volumes (in terms of vouchers and cards) are satisfactory. While Edenred remains the
leader on this market, Sodexo posts higher margin. Virginia JEANSON notes, on this point, that
Sodexo acquired two digital booking and travel expense management platforms, in Belgium and
Poland.
New business opportunities (contract with Rio Tinto for a period of 10 years, contracts with Shell
and Seadrill) and new segments (Prison in Australia) have been developed.
Bertrand DELAMOTTE (Europe) stressed that the signing of the contract with Rio Tinto was made
possible by the new organisation.
Virginia JEANSON (Group) added that the organisational concept has made it possible to better
understand the customer and extend the geographic reach of certain contracts (Huawei, etc.). A
large number of FM contracts, in particular, were signed. The new organisation also increases
responsiveness and integration between Benefits & Rewards and On-Site Services.
The innovation culture is at the same time developed, with the eNOV challenge, which has been the
subject of communication actions with investors. New projects (new applications, improved
customer experience, etc.) are also being initiated within the Group.
The employee engagement rate has increased by 20 points since 2008, now amounting to 68%.
More than 211,500 employees responded to the 100% online survey. 21 entities earned the Aon
Hewitt Best Employer certification. 88% of employees believe Sodexo is the best employer in the
sector.
The Group also delivered on all its commitments on corporate responsibility. Sodexo is in
particular one of the leaders in reducing carbon emissions.
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2. First Half 2016-2017 Highlights
Virginia JEANSON (Group) states that turnover is stable, while internal growth showed a trend of
+1.4%, excluding Rugby World Cup and Energy & Resources. Results picked up in the Second
Quarter. The Benefits & Rewards Services, for instance, posted 7.4% growth.
Operating income improved by 9.7% (+7.7%, excluding currency effects). The extension of the
Adaptation and Simplification Programme enabled us to progress. The share buyback programme
has been completed. Operating margin improved. Net income increased by 16.6% (+14.7%,
excluding currency effects). Acquisitions sped up.
Virginia JEANSON (Group) stated that the first half of the year was shaped by significant
commercial successes: Citibanamex, RioTinto Aluminium, Healthfirst. Many services were also
successfully expanded: Toyota, Colgate, University Hospitals System.
Contracts with North American universities picked up again (Florida State University, Simon
Fraser University), relations with schools developed in Asia (the Kang Chiao International School
in Shanghai and American International School in Guangzhou), and the Benefits & Rewards
services were strengthened.
The Group has also gained recognition for its efforts in CSR, and the first “GlobalWorkplace
Trends”reportwaspublished.
Multiple acquisitions were carried out (Inspirus, PSL, Peyton and Byrne, Xpenditure, iAlbatros,
Tadal, Mentor) and Sodexo has consolidated certain positions (Doyon Universal Services, FAW,
Prestige).
The Group has furthermore invested in start-ups via Sodexo Ventures: Wynd (Clic & Collect),
Neo-Nomade (renting community offices) or LifeDojo (Health).
3. Solid financial performance
Revenue improved by 0.4%, while operating margin rose by 50 basis points excluding currency
effects.
The cash flow level is satisfactory, despite the natural fluctuations observed during the year.
The balance sheet and financial ratios are solid. Net debt amounted to 34% at end-February
4. Operating performance review
In On-Site Services, the performance breakdown was as follows:
Enterprises and Administrations: -2.1% organic growth (+0.7% excluding Rugby and
E&R), +4.2% operating margin;
Health & Seniors: +3.1% organic growth; +6.3% operating margin;
Education: + 0.3% internal growth; +10.1% operating margin.
In total, On-site Services are growing by 1.2%, while operating margin rose by 6.1%.
As to Companies and Administrations, progress by geographic zone is as follows:
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+3.7% in North America;
-7.6% in Europe;
+ 5.6% in Africa, Asia, Australia, Latin America and the Middle East.
Operating income is stable despite the drop in volumes.
Health and Seniors performance by geographic region is as follows:
4.4 % in North America;
- 0.7% in Europe;
+ 13.3 % in Africa, Asia, Australia, Latin America and the Middle East.
Profitability is improving, thanks in particular to the positive impact of service extensions in the
United Kingdom and North America.
As for Education, the trends by geographical sector were as follows:
0.2 % in North America;
- 0.3 % in Europe;
+ 10.5 % in Africa, Asia, Australia, Latin America and the Middle East.
Bertrand DELAMOTTE (Europe) reminded the Council that Europe is experiencing significant
difficulties,eveniftheGroup’soverallresultsaresatisfactory.
Virginia JEANSON (Group) stated that the Benefits & Rewards Services are posting internal
growth of 7.4%, the operating result having increased by 1.7%. Growth is 2.9% in Latin America,
with difficulties nevertheless being noted in Brazil. In Europe, Asia and the United States, growth is
11.5%, thanks in particular to the performance posted in the United Kingdom and the United States.
5. Outlook
The Group is confident about its growth target for fiscal year 2016/2017, anticipating an
improvement in Energy & Resources, as well as in France in the second half, and favourable
calendar adjustments in the United States. Operating income is expected to grow by 8% to 9%
excluding the currency effect and exceptional costs.
The Group is also confirming its medium-term objectives:
average annual growth rate in revenue ranging from 4% to 7%, excluding currency effect;
average annual growth in operating income between 8 and 10%, excluding the currency
effect.
6. Question and Answer Session
Gérard LE MAILLOT (France) asked whether the difference between Sodexo's margin level and
that of its competitors can be explained by differences in portfolio.
Virginia JEANSON (Group) explained that Compass has higher margins and stronger growth,
thanks in particular to a concentration of sectors and geographies. This model is not necessarily
identical to that of Sodexo. ISS, meanwhile, does not operate in the United States, unlike Sodexo,
but posts margin of 5.8% (vs 5% for Sodexo). The aim is thus to move closer to that level by
improving on integrated services.
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Andrew McGinley (Ireland) fears that these efforts will cause employees’ situation to decline,
while the quality of services to the customer is essential.
Virginia JEANSON (Group) recalled that the Group's family status is an asset for investors.
Giuseppe VACCARO (UK) noted that Sodexo posts lower employee retention rates than do its
competitors.
VirginiaJEANSON(Group)states that theGroup’srateamounts to66%,comparedwith83%at
Compass. However, she points out that the calculation methods are very different. She reminds the
Council that the methodology is much more demanding and is aimed at all the employees in all
countries.
Henri VICAIRE (France) asked about the prospects for digital and digitisation.
Virginia JEANSON (Group) indicated that a team is working on identifying opportunities and
prospects for modernisation in these areas.
Henri VICAIRE (France) asked whether employees will be able to benefit from the fruits of
growth.
Virginia JEANSON (Group) cannot provide information on HR-related aspects, but reminds
Council members that employees can buy shares. Moreover, some countries have instituted profit-
sharing, in accordance with their legislation.
Giuseppe VACCARO (United Kingdom) observed that contracts with guaranteed maximum prices
automatically reduce margins.
Virginia JEANSON (Group) acknowledged that the market is very competitive. The aim is to
reduce costs and expand activities. The contract negotiation process must, at the same time, be run
by genuine experts.
Olivier MARCHAND (France) regretted that the presentation was not more focused on the
European situation.
Virginia JEANSON (Group) committed to prepare a segment focused on that scope next year.
HenriVICAIRE(France)enquiredastoSodexo’sfutureinvestments.
Virginia JEANSON (Group) explained that Sodexo will nonetheless make investments in
infrastructures by negotiating beforehand with customers in order to ensure adequate return rates.
Acquisitions will also continue and several projects are under consideration, although not all of
them will necessarily have been signed by the end of the year. Finally, Sodexo Ventures is
investing in start-ups.
Marcin HABERA (Poland) asked if a share purchase programme is offered to employees at the
Group level.
Virginia JEANSON (Group) responded in the negative, given that legislation differs at the national
level.
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Gérard LE MAILLOT, Secretary General, thanked Virginia JEANSON.
The session was suspended at 6.00 pm.
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31 MAY 2017
The session resumed at 8.40 am.
Bertrand DELAMOTTE (Europe) introduced Denis MACHUEL (Group), Chief Executive Officer
as of 1 January 2018, replacing Michel LANDEL (Group)
Denis MACHUEL (Group) said he was extremely proud to succeed Michel LANDEL (Group) and
PierreBELLON,creatorofSodexoandexplainedthathisactionwouldbeguidedbytheGroup’s
interest.
On behalf of the EWC, Gérard LE MAILLOT (France) addressed him his congratulations.
I. On-Site Services Group Strategy
1. On-site services: a sprawling market with tight competition
Pierre HENRY (Group) reiterated that the market for On-Site Services amounts to a potential 888
Bn€ and is shaped by significant demographic changes, digitisation, urbanisation or even changes
intheuseofworkplacesandtheriseof“experiences”andpersonalisedservices.
Sodexo’smaincompetitorsare ISS,Compass,Elior and Aramark. However, regional players are
increasingly present, as are new digital players and self-managed accounts.
Denis MACHUEL (Group) specified that the new entrants in digital (Just Eat, Deliveroo, etc.) are
positioned on the catering market based on one of three models: aggregators (which do not include
deliveries), food delivery specialists, or those offering delivery of fully integrated meals. All of
these players, which have considerable investment capacity, are moving towards the business to
client market. Sodexo, meanwhile, is focusing its internal discussions on the delivery of fully
integrated meals.
2. Our On-Site Service Strategy
Pierre HENRY (Group) explained that Sodexo intends to continue developing and protecting jobs,
and engaging in new initiatives while also controlling costs. The aspiration is “To be chosen and
recognised by everybody because we make every day a better day”.
Steve PANGBURN (Europe) stated that medium-term quantitative targets are 4 to 7% of annual
growth in revenue and 8% to 10% growth in operating income. The increase in turnover is expected
to be no greater than 2.5% this year, but accelerate in the future. The change in operating income is
in line with the target.
Pierre HENRY (Group) stated that Sodexo intends to focus on Quality of Life to improve the
performance of the people and organisations it serves. In particular, it wishes to build on the
gradual transformation of workplaces in order to promote interaction at all levels and proceed from
a learning organisation approach.
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Six dimensions of Quality of Life have been identified:
social interaction;
ease efficiency;
physical environment;
personal growth;
recognition;
health and well-being.
Five priorities have been set:
improve Quality of Life for our employees;
implement the new organisation;
design and sell packages that improve Quality of Life for consumers and performance for
our clients;
increase the value that the Group provides, via innovation;
Reduce operating costs to increase competitiveness and invest in the future growth.
Denis MACHUEL (Group) explained that Sodexo has, to this end, developed a culture of
innovation, in particular via a platform, which aims to bring innovation to life on a daily basis and
Open Innovation to work in partnership with various partners (start-ups, incubators and suppliers).
Denis MACHUEL (Group) illustrates this using the development of digital in Education, which
enables Sodexo to connect directly to its consumers, e.g., via the SoHappy application in France
and the DACH region,“whichestablishesadigital linkbetweenparentsand theschool (detailed
lunch menus, online payment, nutritional advice, etc.). In this respect, a balance must be found
between local projects and rationalisation at Group level. Another initiative was also conducted in
Gaming to develop nutritional advice.
Pierre HENRY (Group) reiterated that a segment-based organisation has been set up, with 12
regions, the transversal functions contributing to the success of the operations.
3. On-Site Services in Europe
Steve PANGBURN (Europe) reported that Sodexo’s business in Europe is based on 7 regions,
comprising135,000employees, amounting to€8billion in turnover (39%ofGroup turnover). It
breaks down as follows: 46% Corporates; 20% Health and seniors; 12% Education; 12% Defence
& Justice; 6% Sports & Leisure; and 4% Energy & Resources.
4. Update on Invent2020 Organisation
Within the CEE region, part of the Hungarian business (public activity of the non-international On-
Site Services) will be sold as a result of the regulatory change in the country.
Denis MACHUEL (Group) stressed that, with each change, the Group takes special care to ensure
employee redeployment and employability.
Steve PANGBURN (Europe) also added that Russia will no longer be part of the CEE region.
Bertrand DELAMOTTE (Europe) reiterated, on this point, that the scope of the European Works
Council is distinct from that of the Company: thus, even though Russia was part of the Sodexo
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organisation' CEE region, it was not present on the European Works Council, not being part of
Europe in the legal sense.
Steve PANGBURN (Europe) stated that Slovenia will join the MED region, and Romania the
Corporate segment. The CEE region will be placed under the responsibility of Mr Gontard.
Steve PANGBURN (Europe) informed the EWC that a European treasury centre had been created
and based in Ireland, with a single tool (Kyriba). Centralisation will enable savings on banking fees,
greater cash securisation and easier processes and reporting. Three teams will work at the centre,
dedicated to: cash management, payments and electronic payments. One of the main aims will be to
develop electronic payments.
This new structure will be implemented from September on, starting with the United
Kingdom/Ireland and France, and continue from February with the Netherlands and Sweden. The
25 countries will be managed from Ireland within 18 months. However, certain subjects will
continue to be handled by the countries. This project will not result in any dismissals. 15 positions
will be created in Ireland. 10 FTEs will be positioned in the countries. The 29 employees impacted
will be informed by their manager. Support and training will be provided.
Bertrand DELAMOTTE (Europe) added that the Employee Representative Institutions of the
countries impacted will of course be informed, in accordance with the labour legislation in effect in
each country. The Speaker thanked the Council for its attention and suggested that, provided the
EWC considered itself adequately informed and had no adverse opinion to voice, the meeting move
on to the next point.
Gérard LE MAILLOT (France) offered to provide an update on this project at the next EWC Select
Committee meeting.
In conclusion, Steve PANGBURN (Europe) stressed that the new organisation would enable a
customer focus and thus facilitate commercial successes, as demonstrated by the contract signed
with Air France. It will also be more effective thanks to a reduction in the number of management
levels and encourage sharing of best practices.
5. Question and Answer Session
Michel BIGNOLI (Luxembourg) asked whether Sodexo intends, in the digital field, to buy back an
existing company or develop its own business.
Denis MACHUEL (Group) replied that at this stage various avenues are being considered:
acquisitions, partnerships, acquisitions of equity investments and own developments.
Giuseppe VACCARO (UK) wants to know how older or less-captive customers can be guided
toward digital.
Denis MACHUEL (Group) explained that Sodexo wishes to build up its own references in this
area. The Companies sector is most affected at this stage. Initiatives have been developed in such as
areas as Click & Collect. At the same time, the MySodexo application can be used to reload
catering badges. More than the technology in itself, deployment is the main challenge, in
overcoming the reluctance of customers and site managers.
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Susanne DIRKS DAHL (Norway) stated that she is convinced of the benefits of digital toward
enabling more efficient work, in particular to better understand the chemicals used at a site.
Denis MACHUEL (Group) confirmed this, highlighting the role of digitisation in drawing up
inventories.
Paul LAVERY (UK) enquired as to potential plans for a Sodexo social network, beyond Facebook.
Denis MACHUEL (Group) reminded him that a social network prototype for the digital community
had been launched via Facebook. A decision will soon be made on the platform to be used by the
entire Group.
II. Personal and Home Services
Denis MACHUEL (Group) reiterated that this business was launched in 2007. Tutoring has since
been abandoned and Services to Individuals and Homes include three areas, directly linked to
quality of life:
in-home assistance;
child-care services
concierge services
1. In-home assistance
In-home assistance, available via a 24/7 hotline, offers services in a variety of areas, excluding
medical: administrative tasks, meal preparation, home upkeep services, autonomy-building,
company and assistance. A single contact is provided. The existing market amounts to 35 bn€. In
the United States, for example, every day, 7,000 people reach the age of 65 years.
Acquisitions have been made in recent years, with the company Comfort Keepers, a network of
franchisees that is particularly prominent in the United States and Ireland, or Amelis in France. The
franchise is a real asset in terms of proximity. Sodexo now has 55 agencies in its own right and 330
franchisees. 5 to 10% of operations could eventually be owned in order to ensure a good balance.
Denis MACHUEL (Group) presented one of the projects developed in partnership with a start-up to
offer GrandPad in the United States, a notepad device accessible to all thanks to adapted
ergonomics.
2. Childcare services
Today,theprivatesectorcoverslessthan10%ofthemarket’stotal volume. Crèche Attitude was
founded in 2003 and acquired by the Group in 2013. It employs 1,500 employees for a total of 150
nurseries, in particular in France, but also in Luxembourg and Germany, based on synergies with
Sodexo On-Site Services. Activities are also offered during school holidays under the Kids Attitude
brand. The educational objective is to prepare children to become citizens of the world.
In response to a question from Michel BIGNOLI (Luxembourg), Denis MACHUEL (Group) stated
that some nurseries are under management, while others are directly created by Sodexo. However,
the Group never owns the buildings.
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3. Concierge services
In today’sworld,69%ofemployeeswould like tochange jobs in thehopesofabetterwork/life
balance and employees dedicate 36 minutes to personal tasks daily. Yet, the turnover generated by
thisbusinessremainslimited,at€12m,comparedwith€63mfornurseriesand€100mforin-home
services. Several acquisitions have been carried out in the United States, France and Sweden, and
activities have been combined under the Circles brand.
A wide range of services are offered (shoe repair, dry cleaning, entertainment ticket booking,
hairstyling, holiday booking, etc.). Increasingly, these services are offered by the Group at customer
sites and Sodexo is asked to run communities. For example, a contract has just been signed with
Deloitte to offer a paper-free programme.
Giuseppe VACCARO (UK) asked about the possibility of developing synergies with the concierge
services.
Denis MACHUEL (Group) explained that the challenge in this area is to engage in cross-selling, as
a means of increasing value, with services that should not be offered free of charge to secure
contracts more easily.
Kerstin HOWALD (EFFAT) asked about the working conditions of those who ultimately provide
the service.
Denis MACHUEL (Group) reminded her that those employees are part of Sodexo; when the
services are provided via franchises, the latter are expected to abide by specific principles, in
particular to ensure that all quality of service commitments are upheld. In conclusion, Denis
MACHUEL (Group) stated the 2024 objectives (10-year plan):
Henri VICAIRE (France) stated that the differences in employee status within the Group can be
complex to manage on a daily basis.
Elisabeth CARPENTIER (Group) reminded him that this is a constant and a necessity if the Group
wishes to achieve continuing growth. All of the employees are nonetheless under Sodexo. There is
no out-sourcing to self-employed individuals.
III. Benefits & Rewards Services
1. Overview of Operations
Didier SANDOZ (Group) reminded EWC members that the Benefits & Rewards Services, opened
in 1976, are now offered in 36 countries, across 5 regions. Beyond the European core region, South
America remains very important, especially Brazil. The business employs 4,500 men and women,
andpostsrevenueof€780millionandissuancevolume(chequeandcards)of€17billion.
Five targets have been set:
Employee benefits (food or meal vouchers account for 70% of operations);
Incentive and recognition program (gift vouchers, etc.);
Mobility (petrol cards, etc.);
Public benefits (public grants, etc.);
Consumer gifts (b to c gift cards, box sets, etc.).
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In total, more than 250 services are being developed worldwide. These services are increasingly
being provided paper-free, from custom-tailored applications to cards (which account for more than
60% of business), m-payment, e-wallets, vouchers, etc. The aim is to develop synergies and
improve quality of life. This can mean, for example, using employer-paid meal vouchers to help
employees to consume better, as demonstrated by the Quality of Life programme developed in
Chile.
In total, Sodexo serves 430,000 customers worldwide, from SMEs to large global corporations.
2. Outlook
Major challenges lie ahead, due to the arrival of new players, diversification, digitisation and
changes in regulatory environments. At the same time, employees have new aspirations about work,
and new work methods are developing, particularly with the arrival of players such as WeWork,
which offers a wide range of coworking spaces.
DidierSANDOZstressedat the same timeemployers’desire to attract and retain talents. In this
regard, Sodexo intends to focus its efforts on two major areas: managing capital management and
mobility.
Four areas have been identified as regards managing human capital:
“Connecting”(essentialsolutionssuchasmealvouchersorgiftcertificates);
“Developing”(training,professionaldevelopment);
“Performing”(performancemanagement or safety);
“Balancing”(work/lifebalance).
In the area of mobility, the aim will be to gradually move toward Fuel and Fleet travel expenses.
In the United States, Inspirus, a company acquired one year ago, is, for example, developing well-
being solutions for companies. In Belgium, a programme based on training vouchers is being
conducted with the Wallonia region in order to encourage training within small companies. In
Spain, a business pass has been set up with companies to manage all their journeys. In the
Philippines, an online gifts solution has been developed for Filipino expatriates. Last but not least,
in Israel, a mobile application, including a payment function, has been developed to facilitate
restaurant and shop searches, the application also offering access to special offers.
3. Question and Answer Session
Olivier MARCHAND (France) and Jane N. LARSEN (Denmark) asked whether Sodexo employees
will be able to enjoy some of the benefits presented.
Elisabeth CARPENTIER (Group) indicated that many initiatives have already been kicked off. The
Inspirus programme, for instance, has been put rolled out for employees from North America.
Cradles can also be offered to employees at certain sites and gift vouchers distributed via the Works
Councils. The idea is, in all cases, to give priority to the Group's services when making these offers.
Elisabeth CARPENTIER (Group) added that a listing could be drawn up of all the services
currently offered in order to identify avenues for improvement.
Pierre HENRY (Group) reiterated that Benefits also depend on regulations and national-level
taxation.
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Gérard LE MAILLOT (France) noted that the EWC will be able to work on the topic of services.
Pierre HENRY (Group) reminded EWC members that Sodexo employees can benefit from
discounts on certain tourist sites.
Henri VICAIRE (France) was surprised that Sodexo was not setting the example in developing tele-
commuting and new working methods.
Elisabeth CARPENTIER (Group) ensured him that many initiatives are ongoing in this area; the
subject remains complex on the ground. Tele-commuting is, for example, necessarily easier to
develop with employees working primarily on computers. In addition, while tele-commuting has
become widespread in the United States, some employees feel it has caused them to lose their
connection with the company.
IV. 50 years of HR at Sodexo
Elisabeth CARPENTIER (Group) stated that her successor has been in his new position since
January 2017; Juan Pablo Urruticoechea comes from the operational sector and is assisted by an
HR team of 2,300 in the Group. She would like to pay tribute to this team and thank it for all its
efforts, as she attends her last EWC meeting and prepares to retire. During this presentation, she
willgobackovertheGroup’sHRpolicies since its founding.
She reminded EWC members that the HR basics were clearly asserted from the outset:
Values such as the service spirit, team spirit and the desire to progress;
the management principles promulgated by Pierre Bellon from 1977 on quality of life at
work, participative management, internal communication and behaviour.
Sodexo has always wanted to establish itself as a responsible employer with the following
principles:
growth as a means of creating jobs, Sodexo being the largest French private employer
world-wide, the 4th at the European level and 19th-largest in the world overall
internalpromotionatthemodel’score;
the attention paid to safety at work;
commitment to diversity and inclusion;
the Charter of Fundamental Rights at Work in 2011 and training managers on this charter;
the importance given to staff during acquisitions.
Investment in training is increasingly important, with more than 5 million hours of training
provided in 2015/2016. The Sodexo Ambassador programme is currently deployed with all
employees. "Académies" are also offered: The Sales Academy, Academy of Site Managers, etc.
The aim is to provide one day of training per year per employee.
Jane N. LARSEN (Denmark) emphasised the cost of training if the entire workforce takes part.
Elisabeth CARPENTIER (Group) explained that training should be considered an investment,
while reminding her that one training day per year remains a realistic objective. Listening to
employees is also essential to identify malfunctions and progress, by setting up quality committees
and expression groups, running Group Knowledge surveys, engagement surveys focus groups and
“Sodexo and me”. The 2020 objective is to reach an engagement rate of 85%. Elisabeth
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CARPENTIER (Group) reminded the EWC that all managers are given targets on health and
safety, as well as on the engagement survey.
Elisabeth CARPENTIER (Group) also took care to emphasise the importance of social relations
and dialogue for the Group. From as early as 1977, Pierre Bellon emphasised the importance
ensuring that information flows smoothly at all levels. Social relations have always been favoured
at the local level. In 1998, prior to the law, Sodexo created the European Works Council. In 2011, a
single global framework agreement was signed with the IUF (International Union of Food,
Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations) on respect for
fundamental rights at work.
Lastly, Sodexo seeks to improve quality of life for its employees, in the short term by ensuring that
minimum standards are applied (security, integration and training), in the medium term by
developing meaningful actions aimed at all employees (training, assistance programme, recognition
programme, a more flexible working environment, internal mobility management by fostering
work/life balance) and in the long term by guaranteeing them access to health insurance as well as
to minimum maternity leave.
To conclude, she states that there has been major progress over the past 50 years. Elisabeth
CARPENTIER thanked the Company, on her personal account, for having been able to continue to
serve through these few months of transition into retirement, while specifying that she will continue
to take part in certain activities within the Group, in particular the Stop Hunger project.
On behalf of the EWC, Gérard LE MAILLOT (France) warmly thanked Elisabeth CARPENTIER
(Group) for all her work over the years, and most particularly since the creation of the EWC.
V. Stop Hunger Initiatives
Mathilde LOING (Europe) reminded EWC members that Stop Hunger is intended to help create a
hunger-free world, taking a threefold approach:
engaging in an ecosystem of volunteers and donors through volunteering, fund-raising and
advocacy;
innovating with partners to co-create sustainable solutions above and beyond food aid;
Sharing expertise and resources with other stakeholders engaged in the fight against hunger
soastomaximisetheGroup’simpact.
The aim is to reach 100 million beneficiaries by 2025, compared with 3 or 4 million today. Several
fields of intervention are thus being developed: support for local communities in need,
empowerment of women and emergency aid. The operations carried out are extremely varied
(fundraising dinners, donations from wages, Servathon, sports, etc.). Targets have been set on a
five-year horizon: Engaging 200,000 volunteers (vs. 113,000 today, one-third of whom are Sodexo
employees), and providing 10 million meals.
Seeing that recent studies have shown that 55% of the progress recorded in recent years resulted
from improvements in the social condition of women, Stop Hunger chose to focus on two angles:
co-creating innovative programmes with local or international NGOs, and securing recognition and
support for existing initiatives, through the creation of the Women Stop Hunger Awards.
Programmes have thus been developed in Romania, the aim being to empower 30 women in rural
areas over a period of three years. As part of this pilot project, several targets have been set: to
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develop a mutual assistance mechanism (collective savings fund), to set up an entrepreneurial skills
programme to develop and sell local food products, to support the creation of local cooperatives, to
market products, to organise their distribution and to disseminate a “made in rural” promotional
campaign. In Africa, a partnership has been developed with the World Food Programme to provide
18 million children each year with free meals at school, derived as much as possible from the
products of local farmers. Two training programmes (food quality advisor, cooking) were
developed for women, specifically for this purpose. A pilot project will be conducted in Kenya with
a view toward wider deployment.
Women Stop Hunger prizes have been awarded. Out of the thirty applications received, four
projects were ultimately selected and received a subsidy of 10,000 euros: The BLK Project in the
SouthBronxinNewYork,the“Tousàl’école”projectinCambodia,the“FarmingasaBusiness”
project in Ghana and a project to unite rice parboilers in Guinea.
Videos are shown on all four projects.
These women were celebrated during the donors evening last 8 March. The funds raised from the
event amounted to €38,390. A call for proposals was issued again in 2017. The projects in
Cambodia and Guinea will also be followed over the coming months by Sodexo teams.
On behalf of the EWC, Gérard LE MAILLOT (France) specially thanks Mathilde LOING for her
work.
VI. Engagement Survey 2016
Henri VAN ELEWYCK (Group) explained that the survey, for the first time in 2016, was
conducted online The participation rate came to 57%. The target of 65% engagement was exceeded,
with a rate of 68%. Action plan monitoring has been more structured within the organisation. By
region, significant improvements were noted in PHS, Brazil, CEE and DACH.
Bertrand DELAMOTTE (Europe) emphasised the progress observed, regardless of the level of each
country, this being due in particular to cultural differences between countries.
Henri VAN ELEWYCK (Group) added that improvements have been constant since 2006. There
are now more fully-engaged employees than on average in the benchmark with other companies.
Giuseppe VACCARO (UK) asked whether there is a correlation with results and performance.
Henri VAN ELEWYCK (Group) confirmed that a connection can be seen with results, but also
with Health and Safety indicators.
Gérard LE MAILLOT (France) noted that the site managers are, however, less engaged than
employees, and considers that this is due to the pressure for results, the inherent difficulty of the
function and the lessened room for manoeuvre.
Henri VAN ELEWYCK (Group) acknowledged that work will be needed on this subject. He
specified that progress had also been made on the following items: Corporate reputation,
communication, top executives/senior leadership and recognition. In conclusion, across all
questions, no decrease was reported. This year again, high levels of satisfaction were reported on all
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itemsrelatingtotheemployees’immediateenvironment,suchastheirrelationshipwith consumers
and colleagues, their environment or the interest they find in their work.
Olivier MARCHAND (France), Michel BRUNFAUT (Belgium) and Susanne DIRKS DAHL
(Norway) regretted that the results were not presented in their countries, as doing so would have
given employees incentive to participate in the next surveys.
Henri VAN ELEWYCK (Group) acknowledged that the results should give rise to communication.
He added that a working group is concurrently reviewing a possible revision to this survey so that
the questionnaire is as closely aligned as possible to realities on the ground.
Henri VICAIRE (France) stressed the importance of deploying concrete actions as a direct result of
the surveys.
Michel BRUNFAUT (Belgium) shared some of the difficulties faced by employees in Belgium,
including workload and desire for promotion, but also pressure from management.
Henri VAN ELEWYCK (Group) explained that it will necessarily take time for working methods
to change. Solutions nevertheless need to be found based on a quality dialogue.
Kerstin HOWALD (EFFAT) wondered about the survey's final objective, pointing out that the least
favourable scores are those seen on training, recognition, remuneration and social benefits.
Bertrand DELAMOTTE (Europe) stated that working groups will be set up in the countries to draw
up action plans tailored to each situation.
Andrew McGINLEY (Ireland) noted that the efforts conducted through certain work streams have
led to results in his country.
Jane N. LARSEN (Denmark) stressed the duress experienced in the workplace and regrets the
occurrence of preventable accidents at several Danish sites.
Michel BIGNOLI (Luxembourg) indicated that employees no longer necessarily want to participate
in working groups on results.
Claudia KIRCHNER (Germany) felt that employees were pressured to respond to the survey.
Henri VAN ELEWYCK (Group) undertook to ensure that everyone felt free to answer the
questionnaire or refrain.
Douglas INMAN (UK) asked that the results be provided by BU.
Henri VAN ELEWYCK (Group) indicated that the results will be disclosed, but reiterated that they
cannot be available at all levels of the organisation. He invited everyone to share feedback so that
these engagement surveys would ultimately be as useful as possible.
The session was suspended at 5.05pm.
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1 June 2017
The session resumed at 9.00am.
I. Initiatives on Diversity and Inclusion
Satu HESCHUNG (Group) reported, by way of introduction that, where organisation is concerned,
one person is in charge of Diversity and Inclusion within each country, and good practices are
shared. Action to develop diversity is fully in step with the strategy, helping to improve quality of
life for employees, communities, clients and consumers, and to facilitate innovation. This includes
creating a diverse network of talent, developing inclusive behaviours and guiding diversity and
inclusion as a catalyst for social change.
Many initiatives have been developed, in particular Spirit of Inclusion. Concurrent to this, the local
leadershipteamshavetakenpartintwotrainingsessions:“CulturalCompetenceforLeadership”(2
hours) and “Leading andWorkingTogetherwithCulturalAgility” (4 hours).ACulturalAgility
page has been created, along with a cultural browser, a web-based tool designed to help users better
understand some one hundred nationalities. 25 moderators have been trained across the countries in
which the Group operates. Virtual training sessions in English were held concurrently, bringing
together Sodexo employees in 12 regions on an extremelywide range of topics (“Creating your
ownbrand”,“Beyondbias”,etc.).
Satu HESCHUNG identified five dimensions in the area of diversity and inclusion:
gender diversity;
generations;
disability;
cultural and social diversity;
Sexual orientation.
On each of these dimensions, networks have been created.
Giuseppe VACCARO (UK) reiterated that not all employees have access to digital tools as part of
their jobs.
Satu HESCHUNG (Group) explained that site managers can help employees make these tools
available. Information on the existence of these different networks, which currently include 6,500
members, could also be broadcast via other channels.
Where gender diversity is concerned, the SWIFT programme (Sodexo Women’s International
Forum for Talent) is aimed at working with women, toward career advancement by helping them
build a strategy and form a network, in 6- months sessions.
Michel BRUNFAUT (Belgium) stated that he was not certain that the creation of categories would
have a positive effect on diversity and inclusion.
Satu HESCHUNG (Group) reiterated that anyone is welcome to join the groups.
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Douglas INMAN (UK) asked whether the system can sometimes end up favouring diversity over
skills.
Satu HESCHUNG (Group) assured that there was no positive discrimination within the Group. The
objective is simply to examine a diverse range of applications, the most competent person being
recruitedintheend. Inclusionisthenessentialtopreventemployeesfrom“hidingaway”andnot
feeling integrated in the Company.
All the presidents of the gender equality networks were brought together in March to define
priorities for action. Satu HESCHUNG also reminded EWC members that Sodexo signed the
principles of women's empowerment and encourages the countries to do so.
With regard to disability, the Group hopes that 100% of its employees (compared with 86.7%
today) will have access to the actions carried out. Countries such as France and Poland, which are
more advanced, can accompany the others. A large-scale campaign was also run.
In the area of diversity in culture and background, action is being developed in three areas:
fostering greater inclusion for minorities, promoting respect for religious differences, and
enhancing multicultural skills. A sponsor has been appointed, Nicolas Japy (Group), and a working
group will meet 4 times this year. The aim is to draw inspiration from initiatives already carried out
in countries, in particular Sweden, which has developed a project to integrate 180 migrants through
internship.
Peter HJORT (Sweden) pointed out that this initiative was successfully deployed in the end, despite
a somewhat complex implementation process.
Andrew McGINLEY (Ireland) expressed regret that Irish employees are asked to leave at age 65,
when they start receiving retirement benefits at only age 66.
Satu HESCHUNG (Group) stated that she had not been informed of this situation, adding that it is
more a matter of local legislation.
Olivier MARCHAND (France) regretted that communication on diversity and inclusion on the
Intranet is focused on results, not on the programmes developed.
Henri VICAIRE (France) stressed the importance of diversity in the context of the current
European political context. He is surprised, however, with regard to the objectives presented, that
unisex uniforms are offered.
Bertrand DELAMOTTE (Europe) stated that uniforms are selected by profession and also take into
account gender; he offers to address this topic at a future meeting.
Gérard Le Maillot, Secretary General, thanks Satu pour his presentation.
II. Group Health & Safety
A video aimed at promoting Health and Safety through testimonials from people close to the
employees is shown.
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1. SST Reward Program
Natasha OMELCHENKO (Group) stressed the importance of cultural changes in Health and
Safety, such as the use of seatbelts, which has become a reflex over the years thanks to the
campaigns run. The Rewards Program aims, in the same way, to change behaviours.
The aim is to identify risky situations and behaviours and incidents in order to reach the zero
accident targets. As part of this programme, employees who report dangerous situations receive
points, which they turn into gifts. The site managers themselves are also eligible, if 20% of their
staff have reported a hazardous situation and if they implement corrective actions in more than 50%
of these situations. The aim is to reduce accidents but, more generally, to bring the Health and
Safety culture forward, as programmes of this kind imply managerial change at all levels. For each
hazardous situation, corrective actions must be implemented and on-site deployment must be
subject to monitoring, in order to enable real progress. After successful roll-outs in France and
Finland, the programme will soon be deployed in the MED and CEE regions. It is also being
offered to the other companies.
Michel BIGNOLI (Luxembourg) called attention to the challenges in identifying hazardous
situations at customer sites due to the commercial pressure involved.
Natasha OMELCHENKO (Group) acknowledged this, but considered it essential to discuss these
issues with customers.
Henri VICAIRE (France) and Michel BRUNFAUT (Belgium) emphasised the importance of
quality communication on the ground, as there are often a very large number of instructions to keep
in mind.
Natasha OMELCHENKO (Group) agreed that priorities do need to be set.
2. Health and Safety indicators
Arnaud AICARDI (Group) explained that all accidents are collected in the Salus database, the aim
being to have an overview and to be able to work on indicators. Personal data are obviously not
mined. A number of dashboards have been created thanks to this, each for a different audience: the
Group HSE Department, the country HSE Managers, and the key account managers.
Figures can be displayed by month, as cumulative since the start of the fiscal year and over 12
sliding months, as can the causes of accidents and the areas of the affected body. These statistics,
which are updated daily, are also available by segment and by site. This makes it possible to
identify the sites generating the most accidents. Results can also be sorted for key accounts.
A monthly dashboard has been put together for the EWC, listing the data by country and
distinguishing between accident consequences: temporary leave, medical treatment or first aid.
Data will also be provided on the causes and parts of the body affected. This table is intended to
change.
Bertrand DELAMOTTE (Europe) recalled that this proposal responds to a request from the
Committee.
Olivier MARCHAND (France) asked if the number of accidents is shown as a percentage of
workforces in the countries.
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Bertrand DELAMOTTE (Europe) reiterated that the objective is not to compare countries, but to
review trends over time for each country.
Olivier MARCHAND (France) nevertheless considered it useful to identify the countries
experiencing the most accidents.
Arnaud JEANSON (Group) did not see any problem with this, but stated that the hours worked are
not always reported in making this calculation.
3. Health Safety at Work at Sodexo France
Philippe LAURENT (France) reiterated that 34,000 employees work at 4,000 sites in Catering, of
which 80% are small sites, while only 10 employees are in charge of Health and Safety. France is
the country with the highest rate of accidents resulting in temporary leave. That being said, a sharp
decrease has been seen, with the rate almost halved in four years. There were also fewer accidents
not requiring leave.
The four leading accident causes have been identified. They are as follows: manual handling, falls
and slips, cuts and burns. In a single year, accidents due to manual handling and falls and slips
decreased by 40%; those due to cuts by 30%; and those due to burns by 50%. The Health and
Safety teams also realised that accidents were concentrated on 20% of sites, and were thus able to
prioritise the related prevention actions.
As part of the Zero Accident culture, employees were reminded that safety rules must be stated in
writing, learned (via regular training and reminders), applied (verified by colleagues and managers)
and respected (disciplinary or training procedures in the event of non-compliance).
Ronan LE SAEC (France) explained that the approach had been structured by adopting formal rules
and common terminology and by working on managerial attitudes.
Four key tools were created for this purpose: a booklet recalling the main rules, posters to inform
employees as close as possible to their workstations, security folders ensuring traceability of
preventive actions and e-tools on Sodexo_Net.
Numerous training sessions and Safety Workshops have been deployed for three years at all levels
of the organisation. Concurrent to this, integration kits were handed out to enable managers to train
their employees.
To get the entire hierarchical structure involved, Safety Walks were organised. The Manager visits
the site to perform security inspections and discuss these topics. Interviews are now carried out
after accidents. Lastly, managers are given objectives specifically on reducing accidents in the
workplace.
Communicationisalsoextensiveandincludes:PowerPointpresentations,videos,“top3 accidents
+1hazardoussituation”,andtheREXNewsFlash.
The Managing Directors and RQHS officers monitor the programmes’ progress. The RQHS
officers also work on the ground to ensure due compliance with instructions.
Michel BIGNOLI (Luxembourg) asked whether Health and Safety indicators could be sent to the
Security Delegate for each country.
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Arnaud AICARDI (Group) suggested he address this request to the Head of Health and Safety at
each country
Henri VICAIRE (France) felt it inappropriate to assign managers Health and Safety targets, since
they are not in contact with the ground.
Philippe LAURENT (France) recalled that this is not the only action taken to contribute to
disseminating a Health and Safety culture.
Natasha OMELCHENKO (Group) added that the objective is, above all, to set targets on action that
needs to be deployed, not targets to be achieved.
Gérard LE MAILLOT (France) indicated that work will need to be carried out at the level of the
Select Committee and the EWC on monitoring results. He considers it important to show above all
which types of action should be avoided, rather than best practices.
Gérard Le Maillot, Secretary General, thanks all the speakers for their presentation on the topic of
safety.
III. Work Programme for the European Works Council over the next year
This point is addressed without Management, except the subject of welfare facilities.
Term of office
Gérard LE MAILLOT (France) reminded EWC members that new members are elected for a term
of four years, the aim being to ensure continuity in the work undertaken.
Country fact sheets
Gérard LE MAILLOT (France) invited all members to send their completed country fact sheets as
soon as possible.
Charity donations
Michel BIGNOLI (Luxembourg) asked that Management allocate a budget to each European
country in order to offer charity donation opportunities to employees.
Gérard LE MAILLOT (France) explained that this would help spread the French model.
Bertrand DELAMOTTE (Europe) recalled that the EWC is not empowered to impose budgets on
countries and added that certain national systems are specific.
Michel BIGNOLI (Luxembourg) and Jane N. LARSEN (Denmark) emphasise that some employees
have limited financial resources and cannot offer their children leisure/cultural outings, concluding
that a discount plan open to all should be put in place.
Bertrand DELAMOTTE (Europe) agreed to have the local systems identified and look into how
information on discounts could be shared at the Group level. Discussions could be held on Culture
with the Select Committee.
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IV. Conclusion of the plenary session
Bertrand DELAMOTTE (Europe) reminded members that the Social Report is available to them.
He furthermore stated that a satisfaction form for the meeting had been sent out.
Jane N. LARSEN (Denmark) asked that documents be sent prior to the meetings in the future and
that the length of the preparatory meeting be extended. This would make it possible for the EWC
members to share their questions prior to the session.
Wim HEITE (Netherlands) asked that documents be sent in digital format.
Bertrand DELAMOTTE (Europe) explained that, due to confidentiality issues and risk of
circulation, not all documents may for be placed on digital media; he reiterates, however, that all
members present receive paper-copy versions of all the materials presented.
Gérard LE MAILLOT (France) read out the points to be taken up at the next meeting:
developments on the Diversity programme presentation;
ananswertoIreland’squestiononretirement;
monitoring of cash centre creation in Ireland;
an update on the benefits that could be offered to Sodexo employees within the Group;
an extension to the duration of the preparatory meeting;
an update on the role of the employee representative on the board of directors;
changes in language interpretation requirements in accordance with members’needs;
Monitoring of Health and Safety indicators.
He furthermore specified that an e-mail would be sent with the contact details of all members and
that the country data sheets would be sent out upstream in order to better prepare the meetings. He
invited EWC members to feel free to inform the Select Committee by email in the event of any
problems encountered in their country.
Olivier MARCHAND (France) stated that the photographs he took during these three days would
soon be sent to the members. The photo directory will furthermore be updated on the website.
Bertrand DELAMOTTE (Europe) thanked all the participants, as well as the interpreting teams.
Gérard LE MAILLOT (France) would also like to thank Bertrand Delamotte for organising this
meeting, as well as each of the participants for the quality of the discussions.
The session ended at 1.10pm.