SOCIAL

Engaging those who are part of the
Company’s history is essential to Chesf’s
restructuring and strengthening process

EMPLOYEES AND EMPLOYMENT

> 102-8, 102-41, 103-2, 103-3, 401-1, 401-2, 401-3, 402-1, 404-1, 404-2, 404-3, 405-1, 405-2, EU14, EU15, EU16, EU17, EU18 >

Chesf has always sought for an ethical and transparent relationship with its employees and, from the beginning of its process of management restructuring, the theme was intensified in its daily agenda. In the Business and Management Plan (PNG), senior management established actions and goals aiming to balance the Company’s results, and shared them with the leaders responsible for dialoguing and instructing their teams.

One of the actions defined in the PNG was the creation of an Extraordinary Retirement Plan (PAE) to adjust the positions to their responsibilities, which resulted in a reduction of workforce and costs on personnel. For the process to adhere to the PAE, actions were established for the conscious decision of the employee, as well as retirement preparation programs, training and qualification for transferring knowledge. The latter is an ongoing concern to maintain intellectual capital developed over the years as a Company asset.

Another action, which added to the results in 2017, was the joint initiative between the Human Resources and Legal areas to analyze labor lawsuits and identify their main causes, establishing action plans to reduce the number of lawsuits. The results of actions implemented in the Human Resources area impacted by 4% the expenses budget of the Management Department.

For 2018, Chesf plans to implement a new voluntary termination plan, which is already in the approval phase. So far, over 3,000 employees have been mapped as eligible for the plan and the expectation of adherence is about 30%.

EMPLOYEE PROFILE

Chesf ended the year with 4,122 employees (staff), composed of 812 women and 3,310 men¹⁰. The turnover rate reached 5.39% at the end of the period, the increase driven by the Extraordinary Retirement Plan (PAE), which reduced the number of staff by 10% compared with the previous year. A total of 480 professionals were terminated and 7 were hired pursuant to court order.

Regarding third parties, the Company does not hire employees for services. Therefore, for the activities allowed in the legislation, contractors are hired for services, through bidding for activities of a continuous nature, provided for by law, such as: maids, cleaning, surveillance, maintenance of assets and real estate, maintenance of facilities, and others. For these contracts, it is required to comply with the Occupational Health and Safety Plan, training personnel based on Ordinance No. 3,214/78 by the MTE. In 2017, Chesf had 2,358 employees from outsourced companies on its premises.

> 102-8, 103-2, 401-1, EU17, EU18 >

¹⁰ The maximum limit for Chesf’s staff is set by the Ministry of Planning, Development, and Management, through the Secretary of Coordination and Governance of State-owned Companies. Joining the Company’s staff occurs through civil servant exam, as established in the Federal Constitution of 1988.

TRAINING AND DEVELOPMENT

> 103-2, 103-3 >

Continued investment in employee training is a premise for Chesf. When developing actions, Strategic Planning is considered as the main guideline in order to develop the technical and managerial skills necessary to handle organizational challenges.

• >The total value applied to Corporate Education was BRL 1,156, million, and the average investment per employee was BRL R$ 280,48.
• >458 actions were registered during the year,which totaled 185.648 hours and represented 106,07% ¹¹ of the workforce.

These results were possible due to the increase in the use of creative solutions, such as the incentives for the educator employee, the use of videoconferences, the increase in the number of spots per educational action, partnerships with other institutions for free in-person actions, and the dissemination of free online actions > 404-1, EU14 >

Among the partnerships, we highlight the Getúlio Vargas Foundation (FGV) and the People Management Committee of the American Chamber of Commerce (AMCHAM), at in-person events. As for online actions, we highlight the free course offered by the Unified Health System (SUS): “Pai Presente: Cuidado e Compromisso” (“Present Father: Care and Commitment”), in order to fulfill the requirements for obtaining extended paternity leave or increase employee knowledge about Responsible Paternity. > 404-2, EU14 >

¹¹ The rate of employees trained at the end of the year was over 100%, due to the reduction in the permanent staff in 2017.

Living and Learning Program

Developed in partnership with SESI, the program offers elementary and high school courses taught on the Company’s premises, during working hours. In 2017, Chesf was awarded in the 15th Benchmarking Brasil, and was among the Top Ten, and seen as a Citizen Company, by protecting the dignity of men and women through literacy.

> 103-2, 103-3 >

The set of benefits offered by Chesf aims to ensure the quality of life and well-being of its employees

REMUNERATION

> 103-2, 103-3 >

Hiring at Chesf is carried out by civil servant exam and strictly follows the order of classification obtained by candidates, according to legal requirements, without gender distinction. However, the Company follows the remuneration policy established by the Holding, along with the 15 companies in the Eletrobras System. This policy considers market values and values of the national electricity sector, negotiated with the unions during the Collective Labor Agreement, in addition to considering the cost of living in different regions in the country.

Entry remuneration is determined at the time of hiring, that is, when employees start at the Company, they already have their base salary defined, which varies according to the Multifunctional Position, according to the Career and Remuneration Plan. An exception occurs regarding the employees allocated to a Higher Level Professional Position, whose profession is regulated by the Council of Engineering and Agronomy (CREA). Evolution of position and salary takes place through administrative policies in the Career and Compensation Plan (PCR) and the Performance Management System (SGD), which considers assessment of skills and results (goals), regardless of gender, race, color, religion, disability, marital status, sexual orientation, family status, age, or any other condition. > 405-2 >

BENEFITS

> 103-2, 103-3 >

Chesf offers a set of benefits aiming toward the quality of life and well-being of its employees. The conditions of these benefits are established in regulations and in collective bargaining agreements, and are guaranteed to full-time and part-time workers, with the exception of apprentices, who are hired under a legal obligation. At Chesf there are no temporary workers, all employees have an open-ended employment agreement. The benefits offered by the Company are:

• > Maternal and child care.
• > Educational assistance.
• > Reimbursement of expenses for uniform and school supplies.
• > Educational aid, higher education for employees.
• > Medical and nursing care at the Company’s outpatient clinics.
• > Employer assistance plan, covering medical, hospital, dental, and other health care services.
• > Reimbursement for medicines.
• > Assistance for glasses and lenses.
• > Assistance to people with disabilities
• > Complement of illness assistance.

The result of the last Organizational Climate Survey of the Eletrobras Companies demonstrated that the benefits package offered by Chesf is the aspect favored the most by its employees. Emphasis is given to maternity and paternity leave, which is guaranteed by normative instruments, and guaranteed to all employees. The Company is a member of the Programa Empresa Cidadã (Citizen Company Program), which allows for the extension of maternity leave and paternity leave. In 2017, a total of 16 employees took maternity leave (11 with return from leave in 2017 and another five with expected return in 2018), and 103 employees took paternity leave.

> 401-20, 401-30 >

HEALTH AND SAFETY

> 102-3, 103-3 >

Chesf has in place an Occupational Health and Safety Policy and other internal regulations to guarantee a safe environment for its employees and comply with the Norms of the Ministry of Labor and Employment (MTE). In addition, the Company is certified by the Occupational Safety and Health Management System (OSHMS), in compliance with the requirements established in the Occupational Health and Safety Assessment Services Standar (OHSAS 18001:2007).

Periodic evaluations of hazards and risks of activities are carried out, which consider the electric shock and the thermal effects of electric arcs due to their exposure to over 50% of the employees as the main risks. Other risks refer to noise in generation operations, chemical risks in laboratories and print shops, as well as biological risks in outpatient clinics and in the Paulo Afonso hospital.

A number of procedures beyond legislation are also planned, such as the Environmental Risk Prevention Program (PPRA) and the Medical Occupational Health Control Program (PCMSO), with occupational medical examinations beyond what is required by NR 07¹². On a day-to-day basis, employees use Collective Protective Equipment (CPE) and Individual Protective Equipment (IPE) to perform certain activities. Although the Company does not provide protective equipment for contractors and subcontractors, use is required in the Occupational Health and Safety Plan and inspected in safety audits.

In 2017, the effort to maintain excellent performance in health and safety indicators was demonstrated in the results. The Work Accident Frequency Rate (TFAT) had already reached in 2016 its best result in the last 10 years, and this year the result was even better, reaching the unprecedented rate of 1.49. This figure represents a decrease of 36% compared with the result obtained in 2016 and remains below the tolerable limit established by Chesf (3.02). The Aggregate Severity Rate of Work-Related Accidents recorded in 2017 was 9, far below the tolerable maximum limit of 138, and 95% lower than the value obtained in the previous year.

These values will contribute to the Reduction of the Accident Prevention Factor (FAP), implying a reduction of tax collection as an Environmental Labor Risk (RAT), levied upon payroll. The value of the FAP is calculated annually by Social Security by company, depending on the frequency, severity, and costs for work accidents and illnesses.

Quality of Life Programs

> Retirement Preparation Program (PPA). .

> 2nd group of the distance course on “Safe and Healthy Behavior”

> CInfluenza Vaccination Campaign against H1N1, H3N2, and Influenza B viruses, with 2,200 people vaccinated at Headquarters and Regional Offices

> Continuidade das atividades dos Centros de

Continuity of the activities at the Health Promotion Centers (CPS) in Recife, with an agreement with SESI-PE and in Sobradinho.

> Organic Fair in Salvador and Recife.

> III Chesf Anniversary Tournament at Headquarters and Regional Offices.

> Street Racing in Salvador, Fortaleza, and Recife.

> 103-3 >

Corporate Program Fique Alerta para Segurança Dez (Stay Alert for the Maximum Safety)

Another cycle of the program was carried out, aiming to disseminate health and safety culture at work. In this sense, Chesf’s III Challenge of Knowledge on Work Safety and Occupational Health was held, conducting online tests on these topics, in addition to a final dispute that brought together the winning employees from the Headquarters and all Regional offices. .

> 103-3 >

Programa Previna-se (Prevention Program)

Carried out in partnership with the Department of Substation Maintenance (DMS), the program aims to establish procedures, training, campaigns, and other actions, aimed at strengthening the safety culture and improving the working conditions of employees

> 103-3 >