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Investor Presentaiton

2016 Braskem | Annual Report 63 FORMAL AGREEMENTS WITH TRADE UNIONS G4-LA8 Braskem respects trade union representation in all locations where it operates and focuses on local labor legislation as the minimum standard for the Company's obligations to its Team Members. It is part of Braskem's activity to maintain an open channel for dialogue so that formal agreements are made wherever necessary. In Brazil, collective bargaining agreements are carried out annually, on specific dates in each region where the Company has operations, and the possibility of extending rights provided for in local legislation are discussed. There is also collective bargaining between Braskem, the Workers' Commission, and the Union, to sign an agreement regarding the Profit Sharing Program. The representatives of Braskem maintain regular and constant dialogue with union representatives. The Labor and Trade Union Relations area is responsible, in each region, for the negotiation of base date agreements (which includes economic, social, safety, environmental, and trade union issues), as well as agreements concerning working hours, and profit sharing. In addition, in Brazil, representatives from Labor and Trade Union Relations conduct regular training with Company Leaders in order to keep them updated on this aspect. In 2016, there were 48 meetings in which 470 Team Members were trained. Confirming its respect for freedom of association in each region of activity, Braskem has Team Members who are part of trade union leadership. It is also important to note that the collective bargaining rules that have been signed contain clauses that affirm the policy of respect for trade union activities, which relate to the access of union leaders to factories; remuneration of union leaders for the exercise of union leadership; payment for union leaders who are absent in order to participate in external events related to union activity; discount of monthly and union contributions. Commitments regarding the agreements are included in the Action Program (PA) of each Team Member, and are submitted to a formal assessment that is documented quarterly. In line with its global operation, Braskem respects trade union representation in all its locations. In Mexico, Braskem Idesa operates according to the processes of SEMPRE (Integrated Health, Safety, and Environment System) and OSHA's Health and Safety Certification, and is part of the Executive Committee of the National Union of Chemical, Petrochemical, Carbochemistry, Ocathem Daskem Energy, and Gas Workers. Based on an open and transparent dialogue, the committee convenes every month to be informed about the metrics and projects under development to improve awareness toward health and safety in the work environment. Also regarding Mexico, collective work norms contain clauses that confirm the policy of respect for union activities and freedom of association. Regarding collective bargaining agreements, every year, representatives of Braskem Idesa participate in the review of negotiations and collective bargaining agreements. Each year, a committee is also elected to review the Profit Sharing Program. In the United States, the labor agreement includes monthly meetings of the Health and Safety Committee. The main objectives and metrics are managed and monitored by a Safety Management Process, and the data is evaluated monthly by the Unit Leaders and by the Committee which, according to the results, may initiate investigations and make recommendations for improvement. Germany does not have in place formal agreements on health and safety, since there are several government regulations and follow-ups on these topics.
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