Employees

G4-9, G4-10, G4-11, G4-LA1, G4-LA2, G4-LA12

Our employees, with their spirit of service and collaboration, are the face of our organization and allow us to service million of customers. They are the primary drivers of our transformation given their talent, skill, professionalism, and commitment, which are all reflected in their daily duties.

Employees by region 2016

All of our employees —regardless of work shift— receive fair salaries and statutory benefits, including, among others, life insurance, private health insurance, temporary or permanent disability insurance, dental insurance, parental leave, support for the purchase of school supplies, price discounts on our devices, shuttle service to and from the workplace, financial aid for funeral expenses, and paid bereavement leave in the event of death of a family member. These benefits vary from one country to another.

Our employees are at liberty to engage in collective bargaining and to unionize in accordance with the laws of the relevant country, although unions do not exist in some of our operations. Our percentage of employees covered by collective bargaining agreements is 100% in Brazil, 91% in Mexico, 70% in Puerto Rico, and nearly 50% in each of Chile and Argentina.

In addition to transforming our operations, we seek to foster the development of the communities of which are a member, through job creation. In 2016, we hired 19,623 new employees (in net terms), of which 8,601 were women and 11,022 were men.

Does not include our operations in Europe, it comprises approximately 93% of our operations.

In each of the countries in which we operate, we provide to our employees statutory severance pay or other compensation and benefits for termination, resignation or retirement. For example, in 2016 we made Right Management's Career Transition Workshop available to 94 former employees in the United States, and the Vida Plena of Telmex workshop to 3,003 Telmex employees who were approaching retirement.

Training and development

G4-LA9, G4-LA10, G4-LA11

The reason for our success lies with the very essence of our organization: our employees. To reciprocate, we provide them with a number of tools for the development of the requisite knowledge and skills to succeed at both the professional and personal levels.

In 2016, we provided to our employees an aggregate of 4,966,587 hours of training on aspects such as customer service, customer satisfaction, leadership, communications, coaching, negotiation, persuasion, dispute resolution, project management, effective conversation, time management, personal organization, sales, ethics, foreign languages, telecommunications, team work, emotional intelligence, approach to change, flexibility, and cultural transformation.

Another example of our efforts to foster the development of our employees is the Performance Survey conducted by Telcel for its administrative and unionized personnel. For the fourth year in a row, through this survey Telcel reviewed 97% of its administrative staff and 100% of its unionized workers. The results of the survey are used by Telcel as a basis for the promotion of deserving employees. In addition, we applied more than of 1,000 Potential Evaluations, as a basis for their promotion to more senior positions.

Moreover, in nearly all of the countries in which we operate, every year we review our employees' performance and identify opportunities for improvement at the subsidiary level. In 2016, 72,103 employees, 55% of our total number of employees, received Performance and Development Evaluations, 360° Evaluations, and participated in Organizational Environment surveys.

None of what we offer to our customers would be possible without the permanence and commitment of our employees, who have accumulated 10, 15, 20 and, for the first time, 25 years of seniority at our company, thereby strengthening our organization and business operations at the core in each of the countries in which we operate. In 2016, we recognized 1,983 employees across a number of business units and countries, for their efforts on our behalf.

Does not include Europe, Brazil, and Uruguay, it comprises approximately 62% of our operations.

Occupational health and safety

G4-LA6, G4-LA7, G4-LA8

We endeavor to create, maintain and provide assurance of a safe and healthy workplace environment where our employees are able to perform to their fullest potential, our contractors can do their job in the knowledge that they are not in jeopardy, and our customers can feel at ease while visiting our facilities.

We strictly abide by the occupational health and safety laws of each of the countries in which we operate, and have implemented a number of awareness and other training programs across our entire organization in order to prevent the occurrence of injuries, diseases, and fatalities.

For example, in 2016 we provided training on aspects such as the use of fire extinguishers, risk identification and mapping, emergency simulation, development of operational continuity plans, accident investigations, and statistics, among others.

In addition, our collective bargaining agreements in Brazil, Guatemala, Nicaragua, Mexico, and Puerto Rico, contain provisions that address occupational health and safety aspects such as accident prevention, hazardous labor, potable water, sanitation, first aid, emergency crews, personal protection equipment, ventilation, lighting, odor extraction, the environment, fire extinguishers, and vaccination campaigns.

Notwithstanding our occupational health and safety efforts, in 2016 we recorded several instances of work-related injuries, diseases, and fatalities.