Robust presence in the domestic and international markets
Avibras has invested heavily in developing long-lasting, transparent relationships with the main organizations and groups of influence in its field. The company is positioned as a leader in technology and innovation and a partner of the communities in which it operates. The company builds relationships based on high quality communication designed to generate critical mass in groups that are important in the formulation of policy and the development of the industry, a factor that is vital for the future of the business. 102-43
The questions addressed with the diverse stakeholders vary according to the characteristics of each group, the state of the market, the macroeconomic conjuncture, sector specificities and company product and service strategies. 102-44
The following examples are worthy of note:
Technology centres and academia – he company has maintained close relations in this area by establishing partnerships for technological development, innovation, improvements to existing products, as well as for training and recruitment of specialized manpower. The Avibras Technology and Innovation Space (EATI) that will be located in the São José dos Campos Technological Park is one of the means of facilitating this.
Government – Relations with the federal, state and municipal governments involve encounters and visits, seminars and working meetings for the development of specific actions, in addition to monitoring of legislation and questions germane to Avibras activities.
Associations – The company plays an active role in trade associations and is represented in seminars, working groups, sector studies, discussions and policy formulation. Suggestions for sector policies of interest to the company are presented to government through trade associations.
EMPLOYEES 103-2 | 103-3
Avibras expects its employees to share and assimilate its organizational culture and values, principles, policies, mindset, behaviours and outlook. These expectations shaped the activities promoted during the year within the scope of the Good Practices Plan. This included periodic reading of Internal Procedures and Work Instructions, Weekly Safety Dialogues, as well as training and team formation by competency for troubleshooting activities.
One innovation during the year was the adoption of a more strategic people management model, Dedicated HR. This has driven positive results for leaders, providing them with the support of teams of facilitators to identify people-related demands. The model is also aimed at approximating Human Resources to other company areas with a view to creating a healthy work environment, ensuring effective communication and boosting commitment to company goals.
This initiative, in conjunction with the Leadership Development Programme – which provides managers with knowledge and management tools designed to motivate and challenge employees – has enabled Avibras to manage people with a focus on results. The idea is aligned with the company’s belief that its employees are essential for the development and growth of the business, particularly where innovation and technological excellence are concerned.
The model, which resulted from a diagnosis made by senior management, led to the creation of the training course Managing People with a Focus on Results. The course was taken by managers involved in integrated product development in 2017 and will be extended to all the other company leaders in 2018.
Profile
At the end of 2017, Avibras had 1,850 direct employees, 87% of whom were men and 23% women. It also had 483 contract workers (79.7% men). With 160 hires and 121 terminations, the turnover rate in the period was 7.6%. All staff, with the exception of interns, are covered by collective bargaining agreements. Contract workers are bound by the collective agreements negotiated by their respective unions. All employees are represented by the Metal Workers Union and are covered by its agreements. 102-41
The company’s People Management Policy is aimed at driving value creation, motivation and professional growth. As such, Avibras invests in on-the-job training and continuing education to ensure the development of its human capital. The number of employees with master’s degrees and doctorates has increased in recent years, and the company intends to expand its policy of providing specialized study grants in 2019.
To attract and retain talents, Avibras invests in the Senai Apprentice Programme, which provides youngsters aged between 14 to 24 with career opportunities. Participants in the programme receive all the benefits granted to employees, in addition to social assistance. Thirty-two young people participated in the programme in 2017.
To further their education and to promote integration, professional development and interpersonal relations, the company also organizes lectures, presentations and visits to the production and management areas to facilitate the interns’ adaptation to the corporate environment.
See the GRI Appendix for the employee
profile and turnover rate during the year.
Remuneration and benefits 103-2 | 103-3
The company’s jobs and salaries policy is based on salary surveys among companies that are similar in terms of size, location and activity.
Avibras also offers differentiated benefits designed to attract and retain talent. These include life insurance, healthcare plan, insurance coverage for incapacity/invalidity, extended maternity leave, dental plan, special medical treatment for employees’ children and day care facilities for children aged up to six years (for women, men who have custody of a child and widowers). 401-2
Avibras also provides employees with a supplementary pension plan in partnership with Brasilprev. The company makes a 100% matching contribution based on the amount paid by the participant, restricted to 5% of the employee’s base salary. Employees may elect to make contributions of up to 12% of their salar.
Training and education 103-2 | 103-3
Based on its culture of technological innovation, Avibras seeks to promote employee growth and development by the provision of specific training based on the identification of gaps in individual or organizational competencies.
Training focused on competencies development was undertaken in 2017. As part of the AS9100:2016 certification process, an internal training campaign was organized among all the engineering areas to standardize levels of product development information.
The Manufacturing/Production Management area also conducted training to integrate existing and new employees. This included demonstrations on how the area works, standard procedures, and the products and safety equipment used in daily work routines. More than 190 employees participated.
Avibras also releases employees from work to study on master’s and doctoral programmes, for example. As a result, there has been an increase in the number of employees with postgraduate qualifications in recent years.
These and other initiatives resulted in a total of 830.59 hours of training by the end of 2017, 5% up on the previous year.
Health, safety and quality of life
Fully aware of the risks inherent to its activities, Avibras underscores prevention through campaigns and constant training. The company promotes a series of activities that include anti-smoking campaigns, breast cancer preventive campaigns, financial and pension advisory services, as well as social support for staff and their relatives.
In 2017, it reinforced its safety support structure in 2017 with the acquisition of four vehicles for the fire brigade, namely two fire engines and two light search and rescue vehicles for the Jacareí and Lorena plants. The vehicles also serve in the Vale do Paraíba Integrated Emergency Network (Rinem), an initiative that involves 39 other companies in which Avibras was a founding member.
The company also has an Internal Accident Prevention Committee (Cipa), a Specialized Safety Engineering and Occupational Medicine Service (SESMT) and specific initiatives, such as a hearing conservation programme, a respiratory protection programme and an electrostatic discharge control (ESD) programme. The ESD programme led to the formation of the Avibras ESD Committee, with members from 16 company areas, which organized courses for some 200 employees during the year.
In the Safety Engineering area, a hundred employees took part in an emergency drill in the Injection sector at Jacareí. This drill was in response to the São Paulo State Fire Brigade requirement of a qualified internal team to deal with emergencies.
Avibras has a Social Service area that runs programmes focused on employee welfare and quality of life. Its attributions include assistance for employees on sick leave, visits to sick employees in hospital and at home, the provision of financial advice, assistance in resolving difficulties related to healthcare plans and the provision of support in cases of chemical dependency, family conflicts, relationship difficulties and deaths in the family. The social service also provides employees with a specific help line for emergencies.
The company provided further support for employees in 2017 by means of the Avibras Credit Cooperative, which organized a series of talks on financial literacy and the importance of financial planning, in partnership with the São Paulo state credit cooperative association CECRESP. The talks were attended by a full range of employees from the shop floor to senior management from the Lorena and Jacareí units.
Avibras also commemorates special dates and festivities. One initiative in this area was the Our History exhibition at the Jacareí and Lorena units, commemorating 56 years of Avibras activities. The events featured display panels and an exhibition of scale models of the company’s main products, as well as videos on key events from Avibras’ past.
See the GRI Appendix for the
employee health and safety rates
as well as labour grievances.
SUPPLIERS 102-9 | 103-2 | 103-3
In 2017, the Avibras supply chain comprised 700 Brazilian and international companies, that provided items such as stamped, forged and wrought parts, plastic injected components, machined parts, boilers, wiring, chemicals and electronic components, as well as services. Suppliers are selected not only based on criteria such as cost, quality, safety, technical and production capacity, but also on key factors related to environmental responsibility, financial health, logistics, risk management and certifications.
Supply chain managements ensures the identification of opportunities for synergy, for reducing risks and for establishing operating standards in line with Avibras values and its Code of Ethics among the company’s suppliers. All contracts include anti-corruption clauses, and the company refuses to do business with partners, agents and contractors that do not adopt zero tolerance towards corruption. Commercial partners are also submitted to risk assessments that involve the monthly monitoring of performance indicators for quantity, quality and on-time delivery.
Avibras’ relations with suppliers are based on the integration of processes and shared goals and business plans and are conducted in a transparent, ethical manner underpinned by trust. This approach was reinforced in 2017 by the introduction of approval, qualification and quality assurance processes in which suppliers are encouraged to boost innovation and productivity, ensuring levels of excellence in product and service quality. Partners are also expected to incorporate cost reduction and continuous improvement measures into their business strategies.
The company has a Procurement Policy aimed at driving co-innovation, co-creation and co-participation in order to drive long-term, high quality relations with partners. Suppliers in Brazil and overseas are made aware of Avibras’ cultural values, ethical principles and good business practices, as well as the requirement of compliance with the principles of the company’s Code of Conduct.
This document was updated in 2017 and validated by the Ethics Committee, the Audit and Risk Committee and the Executive Board. It establishes that all contracts between the company and its suppliers and partners for the acquisition of production inputs and raw materials must contain a term of commitment signed by both parties. At the beginning of the year, Avibras initiated a supplier reassessment and certification process with audits to verify compliance the company requirements, including alignment with social and environmental questions.
CUSTOMERS
Avibras complies with the laws, standards and regulations governing all its areas of activity in contracts with the Brazilian and foreign governments, as well as with private companies, suppliers and other institutions. Due to the nature of its business, the company is at times subject to specific laws and regulations, such as Export Controls, which are complied with in full.
All the information the company provides to governments and control agencies is accurate and complete. Violations of this guideline are considered to be extremely serious and may result in the penalties established in law and in the company’s Code of Conduct. The competent Brazilian authorities are duly notified of all export contracts, and the products involved are always documented accurately and fully.
To ensure customers have broad access to the most up-to-date information on its products, Avibras has improved its processes, installations, working practices and management tools with the formation of a cross-functional team in the Product Documentation Area. The area continuously focuses on ensuring compliance with specifications and standards released by technical publications, since these are used as support material for training customers.
Customer relations are overseen by the contract management areas whose activities include interpreting commercial and legal clauses. After a contract has been signed, the contract management area acts as the interface between internal company areas and the customer. These areas are also responsible for planning and managing the product and service supply contracts previously handled by the Brazil Commercial and Institutional Relations areas, which were merged in 2017. As a result of Avibras’ strategic planning, both areas were brought under the same Commercial Department (VCO in the Portuguese acronym) with the aim of expanding the company’s presence in the domestic and overseas markets and boosting customer numbers. With the merger of the two areas – one dedicated to Brazil and the Americas and the other to the rest of the world – the regions were organized as follows:
This has generated greater synergy in commercial activities and expanded coverage, with the support of the new employees who were brought in to reinforce the team in 2017. The company has representative offices in the markets it regards as strategic and provides services with cross-functional teams that guarantee total support for customers in production, logistics and maintenance.
In Brazil, Avibras participates in strategic programmes of the three Armed Forces. Particularly worthy of note is an unprecedented project with the Brazilian army called the Avibras Knowledge Absorption and Technology Committee (CACTTAV). Aimed at monitoring joint research and development projects between the parties, the committee is based on Avibras premises.
Military engineers monitor the entire research and development process – which also ensures their familiarity with product manufacture and management. Moreover, the Brazilian Army maintains a liaison officer within Avibras who is the main link between the company and the Army. The liaison officer is not involved in commercial questions, but participates actively in deliveries, as well as quality and safety tests for the Army and for other ASTROS system customers.
From the standpoint of the armed forces, Avibras’ strategic importance as a defence sector company resides in the fact that it is a genuinely Brazilian company which operates underpinned by the principles of ethical conduct, integrity, product quality and product safety. It has the capability to deliver innovative, tailor-made products that employ state-of-the-art technology, fully meeting the needs of the Brazilian Navy, Army and Air Force.
All the products the company develops and manufactures are assessed throughout the production cycle, guaranteeing safety and quality upon delivery to the end customer.
SOCIETY
To contribute to the development of the areas surrounding its plants, in addition to paying taxes and generating jobs and income, Avibras, through its Sustainability Committee, sponsors and provides support for actions and organizations working in the areas of education, culture and sports, among others.
In this context, studies were undertaken in 2017 to identify the most appropriate areas of activity for the Avibras Foundation and to revive the key role played by the company in the 1980s when it offered quality education for some 300 young people in São José dos Campos and the surrounding region, forming skilled professionals who now work in the most diverse areas.
Community projects and actions
Digital inclusion – Restoration of the IT room at the Dr. João Leite Vilhena Municipal School in Jambeiro. The measure included the donation of computers, ventilators, furniture, lighting and redecorating two years after a fire that had made the installation unusable.
School material – Every year, 1,400 school material kits are distributed to the children of Avibras Cooperative members and their dependents. The material also benefits members studying in high schools, universities and on postgraduate courses.
Gymkhana – Avibras provides support for this event organized by TV Vanguarda whereby students raise food for charities. The action collected one ton of rice which was donated to the Professor Climério Galvão César municipal school in Lorena.
Independence Day – Avibras was a highlight during the Independence Day parades in São Paulo, Brasília and Rio de Janeiro, demonstrating the ASTROS System vehicles used by the Brazilian Army and Marine Corps.
Artillery Day – Avibras also demonstrated the ASTROS System at the 2017 DemonstrArt event, held at the Agulhas Negras Military Academy (AMAN) in celebration of Artillery Day.
Tree Day – The commemoration revolved around planting Brazilwood seedlings in the grounds of the Jacareí complex to support the preservation of the species and to promote integration of employees and their families.
2017 Industrial Games – For the third year running, Avibras won the Industrial Games organized by the Sesi Industry Social Service in São José dos Campos. The competition is the largest event of its kind in Brazil, with 25 companies participating. Avibras beat the event record with a team of 210 employees participating.
Abandon the Book, Adopt Reading – This is an ongoing project coordinated by two Avibras employees. There are four cultural points in the Jacareí unit: in the restaurant, the vehicle plant, the A-70 building (near the training auditorium) and the tool shop. An internal donation campaign was organized in the Engineering area between April and May 2017 to collect books for the project’s cultural points. The initiative is part of the Good Practices Plan implemented by the area last year. The Abandon the Book, Adopt Reading project encourages employees to drop books and magazines off at the cultural points so that other people may take them and read them. The initiative is similar to the BookCrossing movement that involves swapping books free of charge as a means of sharing culture and knowledge and providing entertainment. The creators of the campaign intend to extend it to Installation 3 in Lorena, with full support from Avibras.
Learning in Industry – Avibras invests in the Senai Learning in Industry Programme which offers young people the chance to get started in the labour market. The partnership benefits young people aged from 14 to 24 who apply the knowledge they acquire in the classroom at work during their internship. Avibras is fully compliant with Ministry of Labour requirements, extending all employee benefits to the interns and ensuring they receive support from the Human Resources area.
Sports sponsorship – Avibras sponsored the employee Ademar Dias de Oliveira in the Mountain Do Run held in the Sahara Desert, paying for his flight and accommodation. Ademar was the champion in his category.
Integrated Emergency Network – Avibras is one of 40 companies that participate in the Rinem Integrated Emergency Network, an initiative the company also helped to found. The company played an active role in the network’s activities in 2017, encompassing meetings, exchanges of experience, training and workshops. The Rinem network is a system with 102 exclusive radio communication points that link private sector companies, hospitals and a number of government agencies in an effort dedicating to saving lives. The aim is to develop and implement integrated projects, programmes and measures aimed at preventing, controlling and combating any kind of emergency that might put human life, the environment and public and private assets in the region at risk.
Grupo de Assistência à Criança com Câncer (GACC) – The company was one of the sponsors of the second Goodwill Dinner for the São José dos Campos GACC, which has been providing medical treatment for children who have cancer for over 20 years.
Associação Conviver – Avibras donated an ambulance to this association in Caçapava (SP) which has been caring for the disabled for 20 years. The company obtained support from a bodywork repair shop in the municipality, which refurbished the vehicle free of charge.
Operation Catioca – In 2017, the Lorena unit hosted the 22nd Agulhas Negras military exercise known as Operation Catioca. Around 4,000 soldiers from 35 Brazilian Army units took part in the advanced drills, which involved training in offensive and defensive operations, as well as cooperation and coordination exercises. Avibras frequently permits the Brazilian Army, the Federal and Military Police, the Fire Brigade and Civil Defence bodies, among others, to use its grounds for training exercises, underscoring its willingness to support civic causes and cooperate with the community.
Support for academia/education/technology/innovation – Avibras provided financial support for technology, innovation and education events, with the objective of fostering these areas internally and externally. Learn about some of them below:
• XIX Symposium on Operational Applications in Defence Areas (SIGE), held at the Instituto Tecnológico de Aeronáutica (ITA) – This is an annual forum for the exchange of experiences between academia, industry and the armed forces on education, research and development as it applies to national defence policy. Avibras had a stand at the event which was visited by students, teachers and officers from the Armed Forces, amongst others.
• International Defence Seminar (Seminde) – This event, promoted by the Agência de Desenvolvimento de Santa Maria (ADESM) in the state of Rio Grande do Sul, brought together representatives of the business community, the armed forces, public authorities and institutions, as well as academics and researchers linked with the sector, to discuss opportunities for development in the defence and public security sectors.
• IV Navy Symposium on Science, Technology and Innovation – This symposium was organized by the Brazilian Navy’s Nuclear and Technological Development area in São Paulo to discuss possible contributions to the country by partnerships involving academia, industry and the government based on the Triple Helix model of innovation. A great number of authorities and academics visited the Avibras stand.
• 2nd ASAS magazine Forum, “Brazilian Army Aviation – the Future” – in São Paulo – Avibras contributed to the event with a presentation of the Skyfire-70 (70 mm air-to-ground and surface-to-surface rocket system), an efficient, complete system consisting of launchers, rockets and ancillary material that is ideal for the Brazilian Army’s rotary-wing aircraft.
See the GRI Appendix for the evolution
of community engagement programmes.
ENVIRONMENT
Environmental practices at Avibras are focused on sustainable development and the reduction of the operation’s impacts, in compliance with all relevant legislation. The company employs a management system based on the NBR ISO 14001:2004 standard, which will be updated to the newer NBR ISO 14001:2015 version in 2018.
The Environmental Engineering area oversees this system, with responsibilities that include verifying the environmental laws applicable to the company’s diverse processes and ensuring they are observed by all employees. The initiatives include environmental inspections, guidelines on the technical requirements set forth in environmental licenses, monitoring new legislation and how it affects operations, as well assessing the main impacts in each company area and adopting measures to reduce them.
Water and energy
Avibras withdraws the water used in its plants from surface and ground sources rather than using public utilities. Water meters are subject to constant inspection to ensure any irregularities identified and remedied immediately. The company generates various kinds of industrial and sanitary waste, which is treated by means of physical and chemical processes in the case of the former and a biological one for the latter. A water recirculation system was installed in one of the buildings at the Jacareí plant in 2017, reducing wastewater disposal volume by approximately 40 m3/month. Similarly, a rainwater harvesting system was installed in the vehicle plant to supply water for toilets. Other projects for re-circulating water in production processes are in the implantation phase or are under study. The company received no fines or sanctions related to waste treatment during the year.
In the energy area, the compressors in the vehicle manufacturing building were replaced, leading to a reduction in consumption of 100 kWh/year (equivalent to avoiding some 12 tons of CO2 emissions). Additionally, fluorescents lamps are gradually being replaced by LED ones, which have a longer working life and are less harmful to the environment. Other consumption reduction measures that have been introduced include switching off equipment in the administrative and production areas during the lunch hour at the Jacareí plant.
These and other measures resulted in an aggregate water consumption of 84,127 m3 and energy consumption of 11,231,078 kWh for all the company’s facilities during the year, respective reductions of 18.1% and 14.7% compared with the previous year.
The introduction of water recirculation systems in the building in Jacareí where the leaching process for rockets is executed is scheduled for 2018 and 2019, while studies are underway for adopting a similar system for electrophoretic coating.
One of the major problems Avibras faces currently is energy blackouts at the Jacareí plant, the result of the fragility of the transmission lines serving the plant. To counter this, the company is conducting a study of its energy matrix, seeking alternative means of generation to meet its requirements and to eliminate power outages. In principle, the most attractive alternative is solar or photovoltaic energy, one of the main sources of renewable energy, use of which is on the increase in Brazil.
Waste
With the installation of the Recyclable Waste Centre and collection stations in 2017, Avibras increased the amount of waste it recycles while reducing disposal in landfills. Similarly, the Total Waste Management project resulted in the implantation of the Waste Centre – leading to a significant improvement in the organization and storage of hazardous materials. The centre, which is covered and closed, is fully compliant with regulatory requirements, having been inspected and approved by the São Paulo state environmental agency CETESB.
The disposal of hazardous waste is undertaken in accordance with the standards established by CETESB and with the agency’s authorization. Information on waste disposal is reported to the competent agencies, which include CETESB and the federal environmental agency Ibama.
The collection and transportation of waste to the recycling and hazardous waste centres is undertaken by a third-party.
Avibras intends to extend selective waste collection to its offices by 2018. The company will also introduce training for employees and third-party cleaning staff to ensure that recyclable materials are sorted correctly.
Biodiversity
Avibras’s respect for and preservation of the environment is evident in the way it cares for the areas surrounding its plants in Jacareí and Lorena, which are located within the Atlantic Rainforest biome. The region has a number of water springs and streams and is home to a variety of plant and animal species. The Jacareí plant has an area of 2.7 million m² bordering the Santa Branca Reservoir. The Lorena facility occupies an area of 9,722,399 m2, with lakes that contain a wealth of fish species. Avibras also has 17,922,810 m2 of land in Ubatuba on the north coast of São Paulo state, 17,610,410 m2 of which is listed as a permanent preservation area.
Going beyond compliance with environmental legislation, the company strives to protect, reclaim and conserve its Legal Reserve Areas (ARL) and Permanent Preservation Areas (APP), investing in efficient processes and procedures that are beneficial to the environment. Furthermore, any animals found in the manufacturing areas of the plants are collected by the company’s fire brigade service and returned to their proper habitat in safety.
The Jacareí and Lorena plants are located in rural zones and are duly registered in Brazil’s Rural Environmental Register (CAR). Their respective legal reserve areas have ecological corridors which ensure greater security for the resident species, enabling them to survive, move around and reproduce.
Whenever possible, Avibras plants trees in the areas surrounding its factories and in 2017 initiated preparations for the production of a book to catalogue the tree species in the Jacareí plant.
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