ORGANISATION AND RECRUITMENT

At 31 December 2009, the Group had 5 858 employees (6 244) in Scandinavia. Of these, a total of 3 505 (3 806) were craftsmen and production workers, and 2 353 (2 438) were officers and administrative personnel.

In Norway, there were 4 402 employees, of which 2 748 were craftsmen and production workers, and 1 654 were project officers and administrative personnel. Sweden had 968 employees, of which 511 were craftsmen and 457 were project officers and administrative personnel. In Denmark, the number of employees was 488, of which 246 were craftsmen and 242 were project officers and administrative personnel.

Labour market and attractiveness

Veidekke has a good reputation in the labour market and is regarded as an attractive employer. This is confirmed by surveys among various groups of workers.

Due to the market decline and general economic downturn, it has been necessary to reduce staff in Denmark and Sweden. So far, lay-offs or dismissals have for the most part been avoided in Norway, as the market slowdown has been addressed by reducing the use of subcontractors.

The building and construction industry is traditionally male-dominated, and the percentage of women is still low. Therefore, Veidekke is working actively together with the trade organisations to attract more women to the industry.

Veidekke employed 715 women in 2009, representing 12.2 percent of the workforce. Of these, 90 were skilled workers and 625 salaried employees. In Norway, 308 of a total of 1 654 women are salaried employees, about 19 percent. The proportion of women among salaried employees in both in Sweden and Denmark is about 23 percent. Among skilled employees in Norway, about 3 percent are women and in Sweden and Denmark about 1 percent are women.

The Board wishes to emphasise that Veidekke works actively to increase the number of women recruited to the company. This is being pursued in part through initiatives targeting high schools and colleges in all Scandinavian countries.

Recruitment

Trainee scheme

In Norway, Veidekke has had its own trainee scheme for many years, and all newly qualified chartered engineers, engineers and economists in Veidekke participate in this scheme. In 2009 there were 60 participants in the scheme. This is a decrease from the previous year and is mainly due to the cyclical downturn in the industry. Construction activity in Norway is actively working to maintain a stable recruitment of between 30 and 40 trainees per year and has clear plans for how they should position themselves in this work.

Apprenticeship scheme

Veidekke focuses on producing its own craftsmen and is a leading apprentice company. The appren-ticeship scheme is a priority, and efforts to maintain a high number of apprentices were continued also in 2009. At the end of the year, Veidekke had 206 people on apprenticeships within building, heavy construction and asphalt. Of these, 160 apprentices were in Norway, 23 in Sweden and 23 in Denmark. In Norway, the number of new apprentices in 2009 declined by about 30 percent. Our goal is to quickly return to a normal level.

On-site learning

Veidekke’s on-site learning project helps to recruit skilled workers both to Veidekke and to the industry in general.

Through the "School on Site" programme Veidekke collaborates with the construction industry working hand-in-hand with the building industry, labour market authorities and schools to provide vocational education in close combination with on-site practical training. For the school year 2009/2010, "School on Site" is located in Nydalen where Veidekke Entreprenør is building Nydalen Secondary School.

Skills and management development

More and more resources are being spent to provide good development programmes for different groups of employees. A great number of our skilled workers have bettered their qualifications with additional craft certificates. In addition, considerable efforts are made to provide all employees throughout the Group with continuous development opportunities.

Through Veidekke’s in-house training centre in Norway and corresponding schemes in Sweden and Denmark, employees are offered a broad range of courses in skills and management development. These courses are closely linked with the company’s business and improvement strategies. In this context, the Board of Directors would like to mention that Veidekke Entreprenør in 2009 initiated a new management development programme for its top managers.

At corporate level, the most important programme is Veidekke’s Scandinavian management development programme. A total of 179 of the company’s most senior managers have so far taken part in this programme, which focuses on professional development in addition to culture and network building. Part of this programme involves carrying out project tasks that are directly linked with the company’s strategy.

Veidekke carries out very little research, but invests heavily in systematic improvement processes and the development of operating methods. Good results have been achieved particularly within the areas of concrete technology, production management and asphalt technology.

In 2009 Veidekke signed a three year agreement to support two research assistant positions in the Faculty of Engineering Science and Technology at NTNU in 2010. Veidekke wishes, through the funding of these positions, to engage in cooperation with the building studies, as well as to continue with its active partici-pation and support of Young Enterprise Norway recruitment and competence.

Partnership agreements

Through the Confederation of Norwegian Enterprise (NHO), Veidekke is an active supporter of Young Enterprise Norway. This project is directed at the school system, all the way from primary school up to college and university level, and aims to stimulate an interest in innovation and science subjects. This, in turn, will help strengthen Veidekke’s subject areas and secure the future of the industry through the establishment of new enterprises. Veidekke is also involved in education through partnership agreements with primary and secondary schools, which help to increase knowledge of the construction industry.

Interaction with elected representatives

Veidekke ensures employee participation by maintaining good relations with elected representatives in line with the framework and traditions that apply in the Scandinavian countries. In Norway, representatives for craftsmen are elected in each district and for each project. A similar scheme is established in Sweden, but there is no corresponding arrangement in Denmark. Staff associations have also been established with elected representatives from the entire operation.

The Group’s EWC (European Works Council), set up in line with EU regulations, is a central liaison body between the management and employee representatives at corporate level. In addition, to exchanging information, the EWC discusses issues of strategic significance for the company. Two meetings were held in 2009. On the agenda in these meetings were market conditions and manpower, improvement processes and employee involment as well as health, safety and the environment.