We encourage all our employees to take an active part in shaping our business by regularly seeking their views and providing opportunities to share their ideas. Examples include on-line initiatives enabling dialogue between staff and senior managers.

We are committed to communicating with our employees and, where appropriate, we consult with recognised representative bodies on behalf of our employees.

• Communication
• Business-based Collective Bargaining
• Employee Opinion Survey
• Dispute Resolution
• Working Groups

Intranet

Our intranet is an important medium for keeping employees in touch with what is going on in the company. Each of our business units has its own site, and employees can access a range of information, from the annual report to instructions on how to make travel arrangements or access employee benefits. Some of the sites are interactive, enabling employees to give us feedback on aspects of our business.

egen

We launched our electronic newsletter, 'egen', in December 2001. egen replaced a paper newsletter, which was published six times a year. Like its predecessor, egen carries a mixture of business news and articles on social activities, but unlike the paper newsletter, it is published on a daily basis, making it a fresh and dynamic source of information for employees. However, we recognise that there are still a number of employees in our UK business who do not have regular access to a computer, so a summary of key news items is still published on a quarterly basis.

Employee fora

Powergen UK's Framework for business-based collective bargaining established a single-table, business-based approach to collective bargaining within the business. This framework provides for each business unit within the company to have its own employee forum, consisting of management representatives, trade union officers and, in most cases, directly elected employee representatives.

These fora provide an opportunity for two-way discussion of issues affecting employees and encourages them to have a say in matters which affect them directly, such as pay, performance management and business re-structuring.

At the end of 2002, Powergen was invited to elect two UK representatives to join E.ON’s European Works Council (EWC). The E.ON EWC consults with representatives of E.ON’s subsidiary companies on a range of cross-border matters that have a potential impact on E.ON Group employees. The elected Powergen representatives will attend the first meeting of the E.ON EWC in 2003.

Business-based collective bargaining

Framework for business-based collective bargaining
In January 2000 a new framework was developed to establish a single-table, business-based approach to collective bargaining for Powergen UK. This framework gives business units the flexibility to manage certain features of the employee relationship, such as pay negotiations and performance management systems, through a system of representative business fora. The framework also establishes a number of Common Standards which reflect company values in key areas.

The business fora operate according to a code of practice which sets out the objectives, procedures and processes for collective bargaining in Powergen UK.

Common Standards

As part of our Framework for Business-based Collective Bargaining, we identified a number of key areas where it was considered to be appropriate to have common arrangements for all staff, regardless of the business unit within which they work, or their seniority. Common standards on maternity and sickness provisions, relocation and transfer provisions, and employment procedures were agreed in consultation with trade unions and are reviewed on a regular basis.

Employee Opinion Survey

Getting feedback from our employees on how they feel about Powergen is vital for our business. In addition to employee fora and egen, which provide formal and informal mechanisms for consulting staff on a range of issues, we use an Employee Opinion Survey to gather detailed information about employees’ views on a range of issues, including diversity, safety, employee recognition, strategy and change management. In 2001 we conducted our 8th Employee Opinion Survey. During 2002 we have been able to use the feedback from this opinion survey to reinforce areas of strength, such as our performance in the area of diversity, and to tackle areas of concern to employees, such as work-life balance. In addition to this, during 2003 a number of our business units will be conducting mini-surveys to focus on key issues affecting employees within those business units.

Dispute Resolution

Our Framework for business-based collective bargaining includes arrangements for handling disciplinary, grievance and capability issues, with a firm emphasis on resolving disputes informally. As a result, we are rarely the subject of formal claims resulting in industrial tribunals.

Working groups

We seek to make the most of the varied talents and experience of employees across our business units by applying their skills to a range of business challenges through the establishment of joint working groups. This approach ensures that the views of people in the different business units are adequately represented and allows us to test ideas and proposals with the people who will be affected. The following are two examples of working groups that have met during 2002:

Work-Life balance

In our most recent Employee Opinion Survey 41% of employees said they believed that top management demonstrates through action its commitment to balancing work and family life. During 2002, a group consisting of individuals from each of Powergen’s UK businesses, management and trade union representatives, met with the objective of developing a set of common principles promoting a positive approach to work-life balance issues. This has provided a useful basis on which to build progress during 2003.

Diversity

During 2002, we have been represented on a project group in E.ON which is working to develop some common principles in E.ON’s approach to managing diversity and realising the benefits of employing a diverse workforce.