:: CTEEP ::

Employees

GRI 2.8, LA1, LA13

In addition to contributing to the reinforcement of the Brazilian electric power system, benefiting society as a whole, CTEEP seeks to acknowledge their talents and promote the development of its employees. To that end, the Company’s people management guidelines represent an aspect of great relevance, therefore reiterating important aspects such as trust, accountability and teamwork.

In recognition of the employees` efforts, CTEEP hosted a ceremony named “Mérito Transmissão” (Transmission Merit) to honor 142 employees who have completed in 2012 15, 20, 25, 30 and 35 years of devotion to the company.

CTEEP closed the year 2012 with a workforce of 1,593 employees, of which 1,506 are workers registered under the CLT (the Consolidated Labor Law), whereas the remainder are represented by Board members, executive officers and interns. The Company adopts the practice of the local selection of applicants, seeking to hire candidates from the neighboring regions surrounding their operational units.
(GRI EC7)

CTEEP employees are predominantly concentrated in the Southeast region, all of which are registered under the CLT.

Own Employees by year

Employees by full-time or part-time work scheme
Full-time or part-time	Contract for indeterminate time or permanent	Contract for determinate time or temporary	Subtotal
Full-time	1.493	25	1.518
Part-time	0	75	75
Subtotal	1.493	100	1.593

Employees by gender
Gender	Contract for indeterminate time or permanent	Contract for determinate time or temporary	Subtotal
Male	1.344	79	1.423
Female	149	21	170
Subtotal	1.493	100	1.593

Employees by age group
Age group	Contract for indeterminate time or permanent	Contract for determinate time or temporary	Subtotal
> 50	253	19	272
30 a 50	1.005	6	1.011
< 30	235	75	310
Subtotal	1.493	100	1.593

Employees by functional category
Functional category	Subtotal	Age group			Gender		People with disabilities
		Age group			Gender
		>50	30 a 50	<30	Masc.	Fem.
Board members	20	16	4	0	17	3	0
CEO	1	1	0	0	1	0	0
Officers	4	2	2	0	4	0	0
Managers	26	11	15	0	21	5	0
Supervisors	84	28	56	0	74	10	0
Administrative	288	51	163	74	165	123	59
Operational Tech.	1.095	163	770	162	1.084	11	4
Interns	62	0	1	61	50	12	0
Apprentices	13	0	0	13	7	6	0
Subtotal	1.593	272	1.011	310	1.423	170	63

Note: The treatment of information of employees by functional category, CTEEP does not include subdivisions by ethnic categories.

Outsourced workers by category
GRI EU17
Category	Number	Percentage
Customer service/consumers and users	145	6%
Maintenance, cleaning, security and conservation	658	26%
Construction workers (Work Mgmt Dpt.)	1.313	52%
Other administrative activities	52	2%
Other maintenance activities	373	15%
Total number of outsourced workers	2.541	100%

Note.: The figures above represent the total number of outsourced workers, who provided services to CTEEP during 2012, regardless of the time period related to the contract or service. The number of working days that lasted the outsourced workers` services is not available.

Turnover
GRI LA2

In 2012, the turnover ratio of CTEEP`s employees declined to 4.29% p.a., excluding CEO, Executive Officers, Board Members, interns and apprentices.

Turnover ratio² considering own employees, by gender
Gender	2011			2012
	2011			2012
	Dismissed	Turnover ratio	Dismissed	Turnover ratio
Male	53	4,19	44	3,27
Female	15	9,74	20	13,42
Total	68	4,80	64	4,29

²Turnover ratio is calculated based on the number of dismissed workers divided by the number of employees at the end of the period covered by the report.

Turnover ratio² considering own employees, by age group
Group	2011		2012
	2011		2012
	Dismissed	%	Dismissed	%
> 50	20	10,26	11	4,35
30 a 50	35	3,34	37	3,55
< 30	13	7,39	16	8,04

Remuneration and Benefits

CTEEP keeps a competitive wage policy based on the employees’ performance, applied according to a methodology recognized and practiced on the market, including the fact that no employees are remunerated only based on the Brazilian minimum wage. The lowest salary practiced by the Company in 2012 was R$ 1,598, or 2.57 times higher than the local minimum wage (R$ 622). (GRI EC5)

The Executive Officers and other executives, including managers, receive an annual bonus calculated according to their achievement of the performance indicator targets set out by CTEEP and ISA. The remuneration of the members of the Board of Directors is not connected with the Company’s performance. The Organization applies the Balanced ScoreCard (BSC) methodology to assess the strategic performance, including economic, social and environmental metrics. The indicators dashboard, named Integral Management Dashboard, as well as the weight for each indicator, are subject to approval by the Board of Directors. (GRI 4.5)

All employees hired under the CLT (the Consolidated Labor Law) for indeterminate time, hired according to the Brazilian Labor Law, for undetermined period, as well as the statutory officers, are eligible to receive the following fringe benefits: medical and dental assistance (extended to their dependants), meal vouchers or food allowances, staple foods baskets (for wages up to R$ 4,836.00), transportation voucher, discounts on products granted by some drugstore chains that hold an agreement with the health plan, vacation bonuses above the rate established by CLT, and participation in training programs. In addition, mothers are offered daycare or baby sitter support and employees who have children with special needs and require full time attention receive a special daycare benefit. (GRI LA3)

Temporary workers (young apprentices and trainees) receive meal vouchers or food allowances, staple foods baskets, transportation voucher, medical assistance and life insurance. (GRI LA3)

The Company also offers a Retirement and Pension Supplementary Plan based on pre-established values, with contribution from the employees and the Company. The adhesion is voluntary and all employees are eligible. In 2012, CTEEP allocated R$ 3,859,200.00 to this plan. (GRI EC3).

Employees eligible for retirement by functional category.
(next 10-year timeframe)
GRI EU15

Employees by gender
Functional category	%
Workers in lines and connections	4%
Substation operators	12%
Engineers	7%
Maintenance mechanics	3%
Others	20%

Relationship with Labor Unions

All 1,506 employees’ contracts ruled by the Consolidated Labor Law regime are covered by collective bargaining agreements. The Code of Ethics, the Human Management Policy and the Labor Collective Agreement are the instruments used by the Company to guarantee that principles such as freedom of negotiation and association are observed in the whole value chain. (GRI LA4, HR5)

To tackle the chief occupational hazards and risks related to its operations, the Company maintains a joint committee with the participation of the unions that represent the category, for assessing and discussing health and safety matters within the Organization, that may affect both own employees and outsourced workers. Formal agreements established with the unions cover many issues, such as allowing employees over 50 years of age to broke down their vacation time into various periods, maintenance of dental exams as part of the periodical medical exam, and maintenance of an employee salary that is in functional re-adaptation as a result of occupational accident. In the event of a suspension of longer than 15 days, resulting from work or non-work related illness, employees have a regressive supplement salary system. (GRI LA9)

CTEEP conducts an ongoing organizational restructuring and operational change process preceded by a thorough assessment. Several aspects are analyzed, such as the feasibility of the implementation proposed and discussed between the top management and the areas involved, be it in terms of economic, financial or human questions. In general, the processes are carried out through a pilot project within a suitable time in advance so as to ensure that the involved parties are duly informed and minimally affected. (GRI LA5)

Professional Development
GRI LA11, EU14

For the purpose of preparing its human capital to cope with the challenges of the Brazilian power transmission sector, the Company carries out various training, educational, professional development and qualification events for its team of employees. Nearly R$ 3 million was invested in 2012, of which R$ 1.3 million was allocated in programs to the regional technical teams and R$ 1.7 million in training courses to employees of other areas (operations center, engineering, administrative, financial, legal, among other areas).

In 2012, the Corporate Education area set out the goal to carry out 60 hours of training per employee and reached the result of 68.75 hours, deriving from a significant rise in the budget concerning professional development. This investment allowed for a significant increase in the number of training hours in comparison with the previous year. Among all training formats (in-person, distance learning and training in the workplace), 926 groups were trained, totaling 106,523 hours/class involving 6,821 participants. (GRI LA10)

The Company also offers financial subsidies for education, including undergraduate and technical courses, post-graduation programs and language courses, which absorbed total investments of R$ 941,000 during the year. The financial subsidy to fund these initiatives currently benefits 243 employees, of which 144 consists in new participants who engaged in the program during 2012. From the total number of beneficiaries, 150 are registered in undergraduate and technical courses, 60 in language classes and 33 in post-graduation programs, from which four are fully paid by CTEEP in specialization programs offered by the “Industry Research and Assistance Foundation” (FUPAI). The company also runs partnerships with educational institutions aimed at granting discounts to its employees.

Average training hours per employee
	CEO, Officers, Managers and Supervisors	Administrative, Operational Technicians	Total
2010	8,01	60,51	68,52
2011	3,76	48,8	52,56
2012	4,16	64,59	68,75

In the Regional Units, customized training courses were offered, such as: reading and comprehension of technical drawings, electric power system protection, batteries and rectifiers, teamwork, among others. Altogether, 1,145 employees who operate in Substations/Installations, Telecommunications, Commands and Controls, Transmission lines and Equipment, took part in the 84 training groups organized in 2012. The instructors of the training courses apply an evaluation system both before and after the conclusion of the course, aimed at assessing the participants` learning progress.

In 2012, 317 training groups were organized, with the participation of 2,322 people, covering topics geared towards the skills required to perform their activities, health and safety in the workplace, and requirements driven by legislation.

The Company also promoted the participation of its employees in the 2012 edition of the Technical Panel, which serves as a forum to exchange knowledge between professionals of both CTEEP and ISA Group, a workshop that is held on a yearly basis. A number of 136 works were selected to be presented, of which 23 were prepared by CTEEP`s professionals.

Education for Sustainability
GRI HR3

The Education for Sustainability Program aims at promoting training courses, seminars and other events related to Corporate Social Responsibility. The main purpose is to raise the professionals` degree of awareness about CTEEP`s corporate strategy related to this matter, with special emphasis on the application of the Company`s commitments in the employees` daily routine.

Within the scope of this program, the Company offers training courses via e-learning mode, by tackling issues such as an overview of sustainability both in Brazil and in the rest of the world; combating against child labor, forced labor or similar to slave work; fight against corruption; equal distribution of income; eradication of poverty; diversity; violence; environmental management; corporate sustainability within the electric power transmission sector and the Company`s standpoint on these matters. All of the content is presented in an interactive way, through audiovisual media, in a recreational and playful way.

This training is intended to all hierarchical positions, as well as to all areas of the Company, and in 2012, it was held with the participation of 620 employees (39% of the Company`s overall headcount), and summed up 1,240 hours of development workshops.

Professional Training Certification

To ensure the quality of service provided, the Company promotes, through specific training, the Professional Training Certification for Power System Operators, Substation Technicians and Technician’s Assistants, and Installation Technicians. In 2012, 17 employees were evaluated, considering aspects such as technical, psychological and physical, in accordance with the guidelines laid down by the Brazilian Electrical System Operator. All participants receive the Certification, evidencing their skill in performing their functions within the Organization.

Career Development
GRI LA12

CTEEP`s competency management model provides support for the employees to achieve the desired results and assist them to develop the best possible career pathways. This guidance is shared with the Company, which determines specific criteria and conveys the best opportunities to enable the employee to fulfill his professional development. It consists in a people management tool based on development the professional`s strengths, aimed at guiding the employee`s contribution to the success of the Organization.

The Assessment of Performance, already in its 4th cycle, consists in a process of determining result targets and individual development, in addition to helping narrow the feedback culture between managers and the professional evaluated. Thus, it is possible to assess the contribution of each professional to the Company`s business, and focus the individual efforts towards a career development in a strategic manner.

In 2012, 84.31% of CTEEP employees were given formal assessment and follow-up on performance for the period.

Development of Young Professionals
GRI LA11, EU14

CTEEP recognizes the potential of its employees and invests in their professional development. In 2012, the Company engaged in the following programs:

Young Apprentice
In 2012, the Company took part in this program, whereby 13 apprentices were engaged in distinct areas, who were granted the opportunity to develop their professional competencies in the corporate world, and thus prepare themselves for the challenges of the labor market.

The apprentices are given transport vouchers, meal vouchers or food allowances, basic staple baskets, medical and dental care, as well as vacation bonuses.

Young Professionals
With the purpose of retaining qualified professionals, in 2012 CTEEP introduced the Young Professionals Program, focused on the development of future engineers to work in key areas of the Operations Division (Commands and Controls, Operations Center and Maintenance). In 2012, 11 professionals were hired, who will have the opportunity, during the period covered by the program, to experience working with a highly qualified team of professionals, and consequently have access to the technical knowledge required for their positions.

The program is geared towards new graduates who have hold bachelor degrees for at least two years in Electrical Engineering, Electro-technical Engineering, Energy Engineering and Computer Engineering. To assure the development of these employees, To make sure these professionals are properly developed, the Company also provides technical training intended to the specific needs of each area, as well as behavioral training.

Internship Program
With the purpose of developing potential talents in the Brazilian labor market, CTEEP maintains an Internship Program for students from university and technical levels. In 2012, 97 interns were selected to take part in the program, of which 51 came from a technical level and 46 at the level of higher education. The program includes technical and behavioral training, as well as practical activities in each area of specialization. An evidence of the success of the Program, 19 interns were hired by the Company in 2012.

The Internship Program includes presentation of individual projects developed by the interns, aimed at providing the Company with innovative solutions, developing and recognizing professional talents. In 2012, 49 projects were presented.

Partnership with SENAI
In 2012, a partnership between CTEEP and SENAI resulted in the creation of an apprenticeship program to provide professional experience in the field of Electro-electronics Technology, with duration of 2 years. With this initiative, the Company contributes to train technical labor force for the Brazilian electric sector and promotes social inclusion through in-house theoretical and practical education.

In addition to SENAI technical training, CTEEP complements the educational program by providing specific training in the area of electric power transmission. A number of 22 students take part in this program.

Knowledge Management and Innovation

CTEEP strives to foster an organizational culture geared towards innovation, and thus it has been exerting efforts to bolster the generation and dissemination of knowledge to create a suitable environment for knowledge sharing, cooperation and creativity. Based on this purpose, the Company introduced, in 2009, the Innovation and Knowledge Management Project.

In 2012, with the purpose of allowing the participation of all employees in this project, CTEEP launched the Knowledge Portal, consisting in a virtual workspace to foster the exchange of experiences and knowledge, which groups together all Knowledge Management tools. One of them, the Idea Channel, has already received the input of over 500 suggestions of improvement to boost innovation, while optimizing processes and activities in the Organization. Altogether, 107 employees submitted proposals during the last year and 25 ideas have been implemented.

The Professional Connections tool also promotes the exchanging of knowledge and experiences among employees. Through their profiles, they can identify professionals connected with critical themes and specific areas of knowledge, facilitating the contact between the Company’s professionals. In addition, the Lessons Learned and Virtual Library tools are used by the employees to exchange experiences and documents, aimed at generating continuous learning, enhancing processes and generating good work practices.

Sustainability Committee

In December 2011, CTEEP created the Internal Sustainability Committee to promote the alignment and integration of all activities that contribute to sustainability, considering economical, social and environmental aspects. The Company aims at identifying opportunities for management improvement from a sustainable point of view; implementing, assessing, analyzing and following up on business sustainable initiatives by the use of market references and tools (e.g.: Global Compact, GRI, ISO 26000, Ethos Indicators, ISA Group Internal Indicators); supporting and disseminating sustainability-related actions; contributing to the preparation of the Annual and Sustainability Report; among other aspects.

Development, Health and Safety in the workplace, Organizational Climate, Remuneration and Benefits), Engineeing, Maintenance, Supplies and Administrative Division. The Strategic Management Head is responsible for the areas of CSR, Strategic Guidance, Technological and Innovation Planning, and reports directly to the CEO. In 2012, this Committee met five times, of which one had an extraordinary status.

Communication Channels

With the purpose of opening spaces for dialogues, so as to keep the staff abreast of the Company`s strategic decisions, in addition to narrowing the communication between the top management and employees, CTEEP makes use of a number of communication tools and relationship with its employees.

One of the most effective channels of communication between Company management and employees is the CTEEP Circuit, launched in 2007. The Circuit promotes visits of the directors to the Company`s units, who make presentations, respond to employees` questions on various topics such as strategy, growth, operations and human resources.

The 2012 edition of the CTEEP Circuit registered the participation of 639 employees. During the seven rounds held during the year, 96% of the employees stated to be satisfied or very satisfied about the event.

In addition to the CTEEP Circuit, the communication among employees is also carried out through other channels and meetings, such as the Primeira Linha (First Line) magazine, a Transnet (intranet), quarterly management meetings, among other opportunities.

Climate Survey

CTEEP carries out a Climate Survey, which monitors factors such as resources, autonomy, upper management, immediate supervisor and attraction and retention of talents.

The survey is conducted via internet, and registered an adhesion of 96%, with a favorability rate of 62% in 2012, representing an increase by five percentage points over the previous year.

Diversity
GRI LA14

With the objective to value, promote and manage diversity, CTEEP adopted the Diversity Program, with special emphasis on people with disabilities, which exceeds by far the mere compliance with the legislation in force, with a focus on respecting, welcoming and valuing the diversities, in line with the values conducted by the ISA Group. In 2012, 63 people integrated the workforce.

The Company has also adopted the principle of equality in pay for same value positions, without distinction between men and women. In 2012, the average pay for women was R$ 5,506.00, whereas the average pay for men was R$ 4,846.00. This difference was due to the fact that the operational workforce is predominantly occupied by men, whose average salary is lower.

Occupational Health and Safety
GRI LA8, PR1, EU16

CTEEP follows the ISA Group`s Health and Safety Policy, based on the principles of prevention, personal care, participation, responsibility and permanent learning. CTEEP carries out training projects involving own employees and outsourced workers about this theme, and has a Social and Environmental Awareness Manual available to those involved in works, including themes such as environmental protection, health and safety in the workplace and proper social relationship with the people living in surrounding areas and work colleagues.

In 2012, CTEEP maintained conduction of the process of diagnosing and implementing OHSAS Standard 18001:2007, aimed at implementing and maintaining an occupational health and safety management system (OHSMS), and achieved significant advances as regards the control of processes and installation infrastructure.

Health and Quality of Life
There are no incidences of specific illnesses in CTEEP activities. Thus, the Company maintains a Quality of Life Program for its employees, focusing on preventive initiatives, which include campaigns to incentive to practice physical activities prevention of diseases. In some cases, such as the prevention of cancer of the lips and skin among employees whose jobs expose them to the sun, the Company adopts specific guidelines, such as the inclusion of sunscreen into the set of protection materials, as well as the conduction of regular monitoring health examinations.

Safety in Electrical Installations
The Organization provides “step by step” procedures to technical and operational workers while performing their activities. These procedures include safety instructions, required resources and preventive conditions.

A Specific Instruction on Occupational Safety is also made available to workers that are exposed to Equipment and Installations of CTEEP`s Electric Power System, aimed at ensuring the workers` preservation of health and physical integrity, by providing training and development programs.

Outsourced Workers
GRI EU18

In the case of outsourced workers, CTEEP holds an internal standard to monitor such workers, both hired and outsourced, in compliance with the Regulatory Standards (NR) from the Ministry of Labor and Employment for the sector. Moreover, outsourced workers must attend an orientation meeting, where they oriented and trained by contract managers on the risks to which they will be exposed. In 2012, 760 integration meetings were held.

The workers responsible for the work fronts also take development training prior to beginning their activities, by attending a training program of Internal Instructions focused on Health and Safety. IN 2012, 322 leaders of hired teams were trained. This training program covers Occupational Safety in handling Equipment and Installations of CTEEP`s Electric Power System, which accounts for 12.67% of CTEEP`s team of outsourced workers, of which 210 work in construction activities and 112 in maintenance.

Programa Viva Melhor (Live Better Program)
GRI LA18

This program offers to the Company`s employees and their families a specialized phone service to provide advice and guidance in eight areas: psychology, legal matters, educational methods, physiotherapy, nutrition, physical conditioning, social assistance and financial advisory, including the conduction of lectures and initiatives of permanent communication.

The service is carried out individually, guaranteeing the confidentiality of the call. This program also involves the preparation of a report, containing the frequency of calls by subject, which enables the Company to propose solutions for the most frequently asked questions.

This service is free of charge and is available from Monday through Friday, from 8:00 a.m. to 10:00 p.m., and also provides assistance to emergency calls 24 hours a day.

Projeto Mais (More Project)

The Projeto Mais was launched by CTEEP in 2012 to raise awareness of its team of professional with regards to the importance of safe behaviors in the workplace. The pilot project implemented in the Sao Paulo regional unit included seminars, training programs and a communication campaign concerning relevant guidance on this issue.

With the support provided by a specialized consulting company, this project adopted the concepts of the Behavior Based Safety (BBS) methodology, which is grounded on the encouragement to adequate postures to lead to the reduction of risks in daily routine in the workplace.

An essential stage of the project consists in the observation process, through which an employee watches a colleague during his performance of a task, so as to evaluate the positive aspects and points of improvement concerning the activities. A positive return is stimulated, by focusing in possibilities of improvement, as opposed to criticism, which may be carried out, if necessary, in a confidential manner. A previous authorization by the professional being watched is also necessary.

Internal Accident Prevention Committee
GRI LA6

In compliance with Regulatory Standards from the Ministry of Labor and Employment, CTEEP monitors health and safety indicators in order to enhance the Company`s performance and prevent accidents from occurring.

Whenever operational employees or third parties are hired, technical training on Regulatory Standard 10 is required, which contains the minimal conditions and requirements for ensuring the safety and health of workers that come into contact with electrical facilities and services with electricity.

The Company also encourages the employees` participation in Occupational Health and Safety Committees, and holds 18 Internal Accident Prevention Committees (CIPAs), spread throughout the Regional Departments, Operations Department and Corporate Headquarters, composed of employees in technical-operational positions, administrative and supervisors, who attended, in 2012, 216 monthly regular meetings, in addition to plenary meetings including all interested employees.

Rate of accidents with injuries, absenteeism, lost days and deaths ³ GRI LA7
	2010	2011	2012
Rate of Injuries (RI)	3,550	3,530	0,550
Number of Injuries	12	12	2
Number of Lost Days	147	125	14
Rate of Lost Days (LDR)	43,520	36,770	3,88
Rate of Absenteeism	-	-	0,95
Man-hours worked	-	-	3.824.100
Deaths	0	1	1

³ The rates of injuries, occupational illness, lost days and absenteeism, are calculated on the basis of the number of workers registered under the CLT, who total 1,506.

Also in 2012, seven Internal Accident Prevention Weeks (SIPAT) were held, one in each regional unit and one in the headquarters, including seminars and activities related to this matter.

Due to such initiatives carried out in 2012, CTEEP recorded a very positive performance, reporting a 155% reduction in the rate of Accidents with Temporary Absence, notwithstanding there was a fatal event, which occurred due to negligence in relation to compliance with safety procedures. The Company conducts the policy of sharing the information on likely accidents, so as to guide the employees with regard to the importance of complying with safety procedures during their performance of professional tasks.

There was also a reduction in the number of injuries, as well as in the rate of absence. The introduction of the automated monitoring of absenteeism rate was completed in 2012, and therefore there is no means of comparison with the previous years.