Social performance

GRI 102-8, GRI-102-41

Supporting the professional and personal development of its employees, as well as the development of the communities where it operates, is part of the Company’s principles, which seeks to not only create job opportunities throughout the various locations in which it operates, but to also offer a healthy and enriched work environment, thereby strengthening its ties with the community. To this end, the Company invests in trainings and campaigns, seeking to guide its employees towards safer and more sustainable practices, handing out information on personal health and development, in addition to carrying out initiatives dedicated to bringing the Company closer to the community.

Operating in a universe of vast territorial breadth and great diversity, the Company seeks to understand and respect local diversity, while proposing the standardization of best practices and the dissemination of beneficial initiatives to employees and the community that are impacted by its operations and always respecting the legal provisions in force in each country.

Employees
The Company ended the 2018 year with 17,535 employees, of which 13,336 are men and 4,199 are women, demonstrating its position as a generator of jobs, while providing professional and personal opportunities throughout several locations.

Its staff is composed of full time employees, with the exception of members of the Jovem Aprendiz program, whose working shift follow the labor requirements dictated by legislation.

The entire staff of the Company is assisted by trade unions, with which the Company maintains an open dialogue for negotiations and resulting in collective bargaining agreements.

Training

GRI 404-1

The Company provides to its employees, in a regular and comprehensive manner, training in various technical and behavioral areas. In 2018, the main topics addressed at all units were: health and safety (Normas Regulamentadoras – NRs), quality assurance, good manufacturing practices, ethics, equipment maintenance, environment (solid waste management) and leadership development.

In order to meet the needs of both regional and of the individual units, the trainings are designed and tailored for each of the different operations of the Company.

Minerva Foods – Brazil
To ensure adherence to a strict system of management in regards to the health and occupational safety standards, the main trainings offered in the Brazilian operation are designed to address the regulatory norms, which determine the requirements and procedures related to work occupational health and safety. Efforts are made to address safe work behavior through leadership coaching on safety, risk perception and the Golden Rules for safety. In addition to the SGI Journey, in 2018, the operations in Brazil recorded a total of 1,875 training sessions, resulting in over 9,044 hours of training in health and safety, the environment, quality, and social responsibility.

Regulatory Norms
NR09: Environmental Risk Prevention Program; NR10: Safety in facilities and Electrical services; NR12: Machinery and Equipment Maintenance Safety. NR13: Boilers, Pipes and Pressure vessels and; NR16: Hazardous activities and operations; NR17: Ergonomics; NR33: Working in Confined Spaces; NR35: Working at Heights; and NR36: Health and Safety at Work in Slaughter Houses and Processing Meat and Derivatives; NR 23: Fire protection.

• Safe Behavior: Daily Safety Dialogues (DDS); Monthly Management Safety Dialogue (DMS); behavior observation; regular safety inspections; golden rules; risk perception; leadership coaching on safety.

• Food quality and safety: good manufacturing practices; operational sanitary procedure; operational hygiene procedure; hazard analysis and critical control points; animal welfare; hygienic conditions; foreign objects; allergens; biosafety; cross-contamination.

• Others: solid waste management; hazardous waste; infectious diseases and leadership development.

Argentina
In Argentina, the objective of the training was to focus on integrating and standardizing the correct use of personal protection equipment, including responsibility for maintenance and cleaning, chemical products labeling, evacuation drills, emergency response, operation of forklifts and self-elevating platforms, and unsafe acts and behaviors.

Colombia
The Colombian operation offered training in:

• Quality: good production practices; regulations; records processing; protocols for maturity of channels; monitoring cuts cooling; frozen products; containers.

• Environmental: management of hazardous waste; management of risk specific material; integrated pest control.

• Human Resources: Family and personal habits; climate organization; assertive communication; human relations; organizational culture.

• Occupational Health and Safety: working at heights; personal protection; safe behavior; unsafe actions and behaviors; emergency response.

Paraguay
In regards to the training in the operations in Paraguay, with the objective for greater integration and standardization of procedures, the following were offered throughout the year:

• Occupational health and safety: personal protective equipment use and maintenance; fire extinguisher handling; Emergency brigade.

• Quality: good manufacturing practices; cleaning and sterilization of surfaces, chemical dilution; animal welfare; handling of containers.

• Environment: responsible water use.

• Corporate: instructions for new employees; Leaders Academy; social responsibility.

Uruguay
For the Uruguayan operation, training was focused on:

• Health and safety: working at heights; noise risk; refresher training in proper use of self-contained breathing apparatus; use of defibrillator; accident investigation retraining for supervisors; Emergency Plan – evacuation exercises; protection measures against weather phenomenons;

• Quality: SGI for supervisors and all those involved.

• Environment: waste sorting and responsible use of water (for all personal).

Work health and safety
The Company considers the safety as a trop priority for its employees in its operations, not only in ensuring compliance with current legislation, but also with the adoption of several safety initiatives. To raise awareness that the involvement of each employee and manager is fundamental for a safe operation, the Company conducts preventive training and maintains procedures to ensure that all involved behave safely, correctly and standardized in the performance of their daily activities.

Minerva Foods – Brazil
In 2018, the Workplace Health and Safety workshop was highlighted in the Company’s Brazilian operation, focused on the development of topics related to management and technical knowledge. The program started with leadership training, and was followed by a discussion on statistics, performance indicators, health programs, steps of implementing the Golden Rules, critical risks action plan and implementation of the group pillar, aimed at strengthening teamwork.

The event was an opportunity to agree on strategies, discuss and answer questions, learn about the best practices used in the units and define common actions in order to strengthen the global team. It included the participation of all the engineers and technical professionals from the units in Brazil, Argentina, Colombia, Paraguay and Uruguay.

The acquisition of a software for the management of routines and health and safety activities in the Brazilian operations, was another important step in safety for 2018.

The following safety campaigns were a significant strategy for employee engagement in health and safety throughout the year:

Carnaval
The campaign focused on personal health and safety issues such as prevention of sexually transmitted; sun and heat protection; alcohol and drug use while driving; fire safety and burn care; vaccinations; and periodic health testing.

Mãos Seguras
Held between March and April, the goal of the campaign was to educate employees on hand safety, emphasizing the importance of personal protective equipment.

Passos Seguros
The campaign, held between May and June, focused on raising employee awareness on the need to pay attention when walking along the Company’s facilities to prevent workplace accidents.

Comportamento Seguro
Held between July and August, the campaign seeks to make employees aware of the safety measures necessary to prevent workplace accidents.

Dia Nacional do Trânsito
The campaign was held between September and October, aimed at employee awareness of traffic safety.

Argentina
To ensure safety in its activities, the Company’s operation in Argentina began a series of measures towards monitoring, standardization and employee awareness.
In 2018, actions for monitoring included the measurements for noise, vibrations, light, particulates, heat stress, hypothermia, and ionizing radiation, and grounding.

In order to ensure a safe response in the event of an emergency a revision of the Emergency Action Plan was performed, in addition to ensuring that measures for equipment maintenance and inspection of emergency lighting and evacuation drills are in place. In addition, a review and acquisition of the necessary clothing and equipment for emergency rescue and response. The pressure vessels and the safety mechanical devices were also subjected to inspection and coordination with firefighters was enhanced.

Preventive fire-related measures taken last year included the maintenance of a range of equipment and installations, such as the pump house, fire extinguishers and hydrants, fire detection systems as well as flow and pressure testing of fire suppression water pumps and inspection of emergency cabinets.

The Company’s work accident management is supported by the records and statistics control on the theme. The Company investigates all accidents, followed by measures for corrective and preventive action.

Working together along with the employees is essential for the Company’s safety activities. The Argentinian operation includes its employees when procedures are reviewed and updated, after an accident and during bimonthly meetings with the employee safety representative.

Colombia
In 2018, the Company’s operation in Colombia began to hold daily health and safety meetings at the beginning of each day, which had a positive impact on the overall management of health and safety. In addition to workplace awareness, the personal protective equipment in all areas have been enhanced by adopting high-strength protection material and technology.

Engineering measures were adopted, such as the installation of stop barriers set at each end of the track rails for the rolling pulley meat hooks, allowing for greater control of the rolling hooks, thereby eliminating accidents due to carcasses falling off the ends of the track rails. The track rails were further extended out to the washing area, improving the movement and convenience of the system, as well as reducing the ergonomic stress. The floor surface of the dismantling area was improved, resulting in a greater adhesion to the floor and less prone to causing incidents due to slips and falls.

Paraguay
At the Company’s operations in Paraguay, the year of 2018 was also one for investments in health and safety at the various units, in addition to the different types of training offered to the employees. Investments were made in personal protective equipment, ammonia leak detection, fire prevention and control, and fall protection. In addition, inspections of boilers and pressure vessels, as well as the calibration of the safety valves were completed.

Uruguay
In 2018, the Company carried out in its Uruguayan operations, some of the previously mentioned campaigns carried out in Brazil, such as Safe Hands and Safe Steps, as well as training on safe elevator use, fire management, emergency evacuation and training for fire suppression brigades among others.

Regarding Health and Safety Prevention Programs, the following measures were taken, ergonomic assessments of the deboning procedures as well as the initiation of psychosocial assessments following internationally recognized methodologies.

Further measures were also taken for the improvement of the facilities, such as the installation of lactating/breastfeeding rooms; conveyor belts to facilitate the lifting and manual maneuvering of the load; changing the dimensions of work platforms to improve safety; improvement on emergency lighting signage; installations of fire containment doors and emergency alarms; improvements in chemical handling rooms and installations of new restrooms and changing facilities, for the well-being of the employees.

Benefits

GRI 401-1, GRI 401-2, GRI 401-3

The Company’s compensation policy seeks to maintain an internal and external competitive balance and meritocracy-based short and long-term incentives, providing conditions for attracting, incorporating and retaining qualified professionals, in compliance with the legislation and professional market of each country. Employees in Brazil receive a fixed monthly income that is adjusted annually according to the percentages established in collective bargaining agreements. The Company also offers additional benefits to its employees, which vary by country.

In all of the operations in Brazil, the following benefits are offered: restaurants; transportation; medical assistance; dental assistance; life insurance; funeral assistance; food vouchers and consigned loans2.

For all the employees in the operations in Argentina, after the training period, the following benefits are offered: cafeteria; medical assistance; day-care; at work medical assistance; life insurance.

In Colombia the following benefits are offered: health insurance (for foreign workers and their families); life insurance (preferred value deducted from payroll, optional); restaurant (main meal compensated by the Company); business transport (does not apply to operational employees); transport subsidy (for the employees in the distribution center); blood bank agreement for donation in case it is needed; discount on optical products, paid through payroll deduction; maternity leave of 4 months and 15 days, and paternity leave of up to 8 working days.

The operations in Paraguay offer the following benefits to its employees: meal subsidy; meal tickets; private medical insurance with preferential rate; school aid; authorized leave for final exams (university/ masters).

In Uruguay the following benefits are offered: access to dental care at a lower rate, with the possibility of financing through the dental care cooperative Codaoc (extended to members of the employee’s family); discount at local gym; distribution of school supplies for the children of employees once classes begin.

1) Except for South American Livestock Company unit – Buritama CSAP

[403-2] Types and rates of injury, occupational disease, days missed, absenteeism and amount of deaths1

tabela-1-en

(1) The data from 2016 was not included (for comparison).

Community

GRI 413-1

With operations in several different countries, the Company contributes to local development by directly employing more than 17,000 people, the majority in small towns. This positive impact leads not only to the creation of direct and indirect jobs but also to the development of commerce and the economy of these locations, transmitting into significant effects on the Human Development Index (HDI) of these communities.

In this regard, the Company seeks to undertake initiatives to build and engage with the community, support local development and help spread social related information through projects, programs, events and donations to nonprofit groups, among others.

A great initiative that happened in 2018, that involved the operations of the Company in all five countries, was the SGI Journey. In its fourth year, it was organized based around the theme “By valuing people, we grow”, encompassing 20 industrial units (Brazil, Argentina, Colombia, Paraguay and Uruguay), eight distribution centers, six buisness related companies (Minerva Fine Foods, Minerva Leather, Minerva Biodiesel, Minerva Casings, CSAP Barretos and Minerva Live Cattle) and two corporate offices. The event registered the participation of 16,648 people and highlighted the importance of each employee towards the Company’s growth.

Among the several activities, the following can be highlighted: the participants were hosted to a healthy breakfast; an area for health examinations was prepared for those wishing to take part in preventive tests; access to informative boots and daily talks centered around a variety of topics; a virtual game simulator for the identification of job hazards and food safety. Two other important activities took place that involved the employees and the communities around: Café Sensorial and Portas Abertas.

Café Sensorial was a hands-on experience dedicated to raising awareness on the inclusion of people with disabilities or special needs in the work environment. Simulations of disabilities were made on participants, who were then invited to perform ordinary daily activities, thus allowing them to get a feel for the barriers and challenges that are faced by people with special needs each day.

Portas Abertas invited the community around the Company to get to know its facilities, manufactured products and some of the processes in each area. Through partnerships with local universities, technical schools and health departments, the event provided information and services to attendees, the Human Resources staff assisted in the creation of resumes, as well as screening for possible employment opportunities within the Company. Portas Abertas coincide with and joined in the celebration of the Children’s Day, offering games, fun and educational activities to the children of employees and children of the community.

Brazil
In 2018, seeking to reinforce its commitment to social responsibility and volunteer work, the Company’s operations in Brazil conducted a campaign called Natal Solidário. Charity soccer matches, food collections and gifts for children, teenagers and seniors from local institutions were organized, and a day of special activities in a nursing home (haircut, manicure, makeup, games of domino, among others). These actions were made possible through the dedication of the teams from each of the Company’s businesses.

Another significant initiative was the Programa de Inclusão de Pessoas com Deficiência, which includes training strategies in order to form qualified professionals ready to join the workforce, according to the market needs. Since 2016, in partnership with the City of Barretos, the Company has opened two classrooms, built at the Centro Municipal de Reabilitação Solange Lana de Ávila Rehabilitation Center, in order to offer free professional training courses for people with motor disabilities. In addition to sponsoring the initiative, the Company expects to contract part of its graduated professionals.

The Brazilian operation has many other campaigns and events to help promote topics of social interest:

Dia da Mulher (Women’s Day)
The celebration revolved around special activities catered to the well-being of the employees. Women employees received information on nutrition and talks on women’s health, in addition to a meal with special decorations, relaxing massages and gifts.

Padrinhos & Amigos
This Project seeks to facilitate the integration and adaptation of new employees by offering them “godparents”, employees who have been chosen based on their knowledge of the area, good performance and demonstrate company pride. These trainings take place monthly and are taught to various classes.

Dia das Crianças (Children’s Day)
To celebrate Children’s Day, the Company conducted activities geared towards the children of its employees and community. The event offered toys, treats, fun activities such as games, facial painting and train rides.

Campanhas Outubro Rosa e Novembro Azul (Pink October and Blue November Campaigns)
The Company participates in these well-known awareness campaigns on the prevention of breast cancer in women and prostate cancer in men.

Semana de Conscientização e Sensibilização sobre a Pessoa com Deficiência
In 2018, the Company devoted a full week to address the issue of inclusion and diversity in the workplace, with a special focus on people with disabilities, through discussions and video presentations on the subject.

Campanha do Agasalho
Last year, the Campanha do Agasalho, a campaign dedicated to the collecting of winter clothing for donation was carried in all of the units in Brazil during the month of June. The purpose was to collect as many clothes, shoes, jackets and blankets as possible, which were then donated to needy families living in the communities surrounding the Company.

Projeto Maternidade
Aimed at providing support and guide to the expectant mothers of the Company, the Project is composed of a multidisciplinary team that organizes informative lectures with healthcare professionals on issues regarding the different phases of pregnancy. At six months of pregnancy, the Company’s employees also receive a personalized bag containing items for the baby’s care. Post birth, the team will arrange social visits accompanied by an administrator after the baby is one month old.

Doação de sangue (Blood donation)
The Company encourages blood donation, seeking to raise awareness among employees about the importance of this life-saving act of solidarity.

Programa Jovem Aprendiz
The Company offers monthly training for the professional development of apprentices with topics focused on the needs of the group.

Programa PCD
Designed to provide training for people with disabilities for the job market, the program offers a dual module course; theoretical and practical. These classes are held in Barretos twice a year. In addition to providing training, the Company can later contract the students according to job openings within the Company.

Programa PCD, na unidade industrial de Barretos

Argentina
In the Argentinian operation, the main initiative towards the community, in 2018, was the corporate sponsorship of the community center Manos en Acción (Hands in Action), through a monthly monetary donation. This organization operates for the social inclusion and human development of children and families in need, looking to promote equal opportunities in order to improve the quality of life for families.

The Company’s contribution helped to fund food aid for more than 400 children, more than 600 hours of school support and over 400 hours of adult literacy and family orientation workshops. It also aided in the opening of a game room for more than 500 hours, along with the development of more than 1,000 hours of sports activities, and broadened the scope of services to the community by incorporating a health center.

The event Ahora Usted También Forma Parte de Ésta Historia, carried out in February, is part of the Company’s integration campaign into the newly acquired units in Argentina. The event was attended by Alta Gestão, celebrating 25 years of Minerva Foods trajectory and 110 years of Swift Argentina, and aligning the perspectives for 2018.

Colombia
In 2018 the Colombian operation offered aid to the Fundação de Crianças Vulneráveis, an organization developed to help needy children, through monthly donations of toys and food.

Paraguay
In 2018, the Company’s operation in Paraguay undertook a series of initiatives to strengthen its ties with the community and highlight social issues. Thus, a program for schools to tour the Company’s plants was implemented as a way to bring the community closer to the organization. For its employees, celebrations were held with participation from their families, on dates such as Children’s Day and Christmas, as well as informative talks on topics such as Social Responsibility, breast cancer awareness, smoking and alcoholism.

Uruguay
In 2018, the Company’s operation in Uruguay had provided support the community in the field of education. It offered support to five schools from the Fundação Niños, located in poor and dangerous neighborhoods. It also contributed donations to Escola do Sagrado Coração de Jesus, an institution located within the area of influence of the Carrasco production plant.

In order to contribute to the training of young professionals and attract talent to the organization, the operation conducts an internship program that allows university students to carry out the practical part of their training at the Company.