Employees at the
RioGrandense Unit (RS)

Human
capital

LEARN ABOUT GERDAU'S DEMOGRAPHIC PROFILE

GRI 102-8- Information on employees and other workers

GENERAL DISCLOSURES

  • Percentage/Total number of company employees
  • Percentage/Total number of contractors/freelancers

TOTAL NUMBER OF COMPANY EMPLOYEES BY
TYPE OF CONTRACT AND GENDER (IN BRAZIL)

Company employees with a
permanent contract
Company employees with fixed-term or
temporary contract
Total number % of total
employees
(permanent and
temporary)
Total number % of total
employees
(permanent and
temporary)
2018 Men 14,167 83.3% 886 5.2%
Women 1,365 8.0% 587 3.5%
Total 15,532 91.3% 1,473 8.7%
2019 Men 14,166 82.0% 897 5.2%
Women 1,532 8.9% 681 3.9%
Total 15,698 90.9% 1,578 9.1%
2020 Men 14,308 83.6% 520 3.0%
Women 1,885 11.0% 409 2.4%
Total 16,193 94.6% 929 5.4%

TOTAL NUMBER OF COMPANY EMPLOYEES BY
TYPE OF CONTRACT AND REGION

Company employees with a
permanent contract
Company employees with
fixed-term or temporary contract
Total
Brazil
Brazil
2018 15,532 1,473 17,005
2019 15,698 1,578 17,276
2020 16,193 929 17,122
Canada
Canada
2018 1,281 7 1,288
2019 1,350 6 1,356
2020 1,336 2 1,338
United
States
United States
2018 4,739 9 4,748
2019 4,844 12 4,856
2020 4,396 15 4,411
Mexico
Mexico
2018 1,197 75 1,272
2019 1,256 84 1,340
2020 1,313 104 1,417
DOMINICAN
REPUBLIC
DOMINICAN REPUBLIC
2018 807 0 807
2019 792 0 792
2020 799 0 799
Peru
Peru
2018 909 51 960
2019 869 64 933
2020 863 56 919
Argentina
Argentina
2018 673 2 675
2019 645 6 651
2020 625 0 625
Uruguay
Uruguay
2018 209 4 213
2019 196 0 196
2020 180 0 180
Venezuela
Venezuela
2018 - - 0
2019 - - 0
2020 260 18 278
Colombia
Colômbia
2018 997 440 1,437
2019 885 499 1,384
2020 850 457 1,307

Notes: The numbers did not vary significantly, but this year we are bringing data from Venezuela. Data were compiled from the collection by the local People teams, with access to internal QL control tools. Contractors perform various types of work, such as IT, maintenance, food, and logistics.

In the past three years, all of the company's own
employees have worked full-time.

GRI 102-12
External initiatives

EXTERNAL INITIATIVE MANDATORY/VOLUNTARY ADOPTION DATE
Manifesto “Be Anti-Racist” Voluntary June 2020
B Movement Builders Voluntary September 2020
LGBTI+ Companies and
Rights Forum
Voluntary February 2020
Business Coalition for
Racial and Gender Equality
Voluntary September 2019
Pact for Inclusion of
People with Disabilities
Voluntary October 2019
Business Coalition to End
Violence Against Women
Voluntary November 2019
Women Empowerment
Principles
Voluntary July 2017
Carbon Disclosure Project (CDP) Voluntary August 2020
UN Global Compact Voluntary August 2019
Conscious Capitalism Voluntary March 2019
Circular Economy Hub Voluntary November 2019
Center for Intrapreneurship Voluntary January 2019

GRI 102-17, GRI 103-1, GRI 103-2 and GRI 103-3: 205
Anti-corruption

Gerdau's compliance program detects and mitigates internal and external risks that could impact the business and reinforces the company's commitment to ethics and integrity. The Code of Ethics and Conduct, policies, and guidelines outline Gerdau's duties to comply with laws, execute routines, follow sound governance, and authority levels. In addition to the Compliance Policy, Gerdau has in place the Anti-Corruption Policy and the Guidelines for Relationship with Public Officials, Sponsorships and Donations, Contracts, Courtesies, and Disciplinary Sanctions.

In its relationship with third parties, with an emphasis on transparency and fair competition, in 2020 the company published its Code of Ethics and Conduct for Third Parties, available on the internet, and included in contracts and purchase orders compliance clauses and terms of commitment with adherence to anti-corruption practices.

To view the policies click here.

The company also has in place an anonymous and confidential communication channel, available to internal and external audiences, so that questions and suspicions of violations of the Gerdau Code of Ethics or legislation can be reported and addressed. Reports can be submitted through Gerdau's website, telephone, email, or letter directly addressed to the Fiscal Council. In any case, Gerdau guarantees the whistleblower's anonymity and non-retaliation, as well as the confidentiality of the report.

To learn more about compliance, click here.

GRI 205-1
Operations assessed for risks related to corruption

All operations and processes with direct impact on cash flow are evaluated by internal audit on an ongoing and alternating basis. The Compliance Area performs risk assessments on processes that generate greater compliance risk. All processes are assessed, with an emphasis on the records presenting some point out of curve or sign of abnormality. All operations are assessed, whether through the audit plan or eventually in response to a report regarding ethics. The risks identified are assessed with process owners, and an action plan is defined to eliminate or minimize exposure. Internal audit follows up on its implementation.

GRI 205-2
Communication and training about anti-corruption policies and procedures

All active employees (approximately 27,000) were trained in compliance practices via e-learning. There were also in-person workshops and messages from the leadership to all operations on the topic of ethics.

In addition,
12,500
CUSTOMERS and
SUPPLIERS

from all operations
were communicated
about Gerdau's
anti-corruption practices.

GRI 403-1, GRI 403-2, GRI 403-4
Occupational Health and Safety

Gerdau has a health and safety management system with practices and tools operating at three barriers: physical, systemic, and behavioral. The goal is to establish the guidelines for health, occupational safety, and process safety management and to establish minimum health and safety compliance requirements for all units. The system covers all the company's industrial, commercial, and transformation units and applies to all employees and service providers. We comply with the local legislation of all the countries where Gerdau operates.

The company has a specific practice in place for Hazard Identification and Risk Assessment. The hierarchy of controls must be considered in the definition of actions to reduce risks and in handling high criticality risks. Leaders of operational areas carry out the Hazard Identification and risk assessment process with oversight and support from health and safety professionals. Assessments that adopt more complex and specialized methodologies are also monitored or conducted by external consultants specializing in these tools.

Gerdau encourages its employees not to expose themselves to risks and provides a tool for this purpose called Recusa a Tarefa de Risco (Refusal of Risky Task). It is the right of company employees or contractors parties to refuse to do work that they believe has uncontrolled risks.

If the risk is confirmed by the leadership and the Health and Safety technical team, work will be suspended until the risk is eliminated or controlled. This entire process is audited to avoid any type of misuse or retaliation.

Employees participate in the development, implementation, and evaluation of the health and safety management system through the reporting tools for safety events, in the implementation of safety practices under their responsibility and in team meetings with the leadership. The units have health and safety committees composed of employees and leaders. In countries where this topic is regulated by law, members are elected by the employees to represent them. The meetings are held monthly, and the topics and decisions are made during the same meeting because the company's leaders are also present.

GRI 403-8
Workers covered by an occupational health and safety management system

All (100%) of the organization's employees and contractors are covered by Gerdau's Health and Safety system. The system relies on internal auditing and was considered audited by an external party in the units that have external safety certification (e.g. ISO 45.001, OHSAS 45.001, etc.).

Gerdau has approximately 13,000 employees/ month who are not employees, but whose work is controlled by Gerdau. This number is not directly monitored, and, therefore, was estimated based on the total number of hours worked by contractors (workers who are not employees of the company).

Employees
Gerdau employees at
Araçariguama Unit (SP)

GRI 403-3, GRI 403-6

Gerdau has health plan benefit programs for all its employees and their dependents. The Occupational Health and Hygiene services have the following programs for identifying hazards and minimizing risks:

  • Occupational Hygiene Program
  • Medical Control of Occupational Health
  • Ergonomics Program
  • Alcohol and Drug Use Control
  • Respiratory Protection Program
  • Hearing Conservation Program

All our units have a medical clinic staffed by professionals in the field (doctors, nurses, and nursing assistants). The number and type of professionals are dependent on the size of the unit and the number of employees.

In addition to occupational risks, Gerdau carries out health promotion campaigns on various topics, including:

  • Anti-tobacco
  • Prevention of alcohol and drug use
  • Prevention of breast and prostate cancer
  • Prevention of heart disease factors, hypertension, diabetes, etc.

The health plans offered to all employees and dependents may differ in the countries where Gerdau operates.

GRI 403-7
Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Gerdau's units have traffic accident prevention programs, guidelines in primers, and training for truck drivers, whether they are transporting raw materials or products. Also, there are campaigns for external salespeople in order to prevent accidents in their activities.

GRI 403-5
Worker training on occupational health and safety

Each role has a Training Matrix that indicates the mandatory training and the frequency of refreshers. Contractors receive onboarding training and Risk Analysis and Work Permit training, as needed. Third-party contractors must prove they have completed all other required training before joining Gerdau.

GRI 403-9
Work-related injuries

Total
A. WORK-RELATED INJURIES
(COMPANY EMPLOYEES)
2018 2019 2020
i. Number of fatalities as a result of work-related injury 0 0 1
i. Rate of fatalities as a result of work-related injury 0 0 0.02
ii. Number of high-consequence work-related injuries (excluding fatalities) 7 10 9
ii. Rate of high-consequence work-related injuries (excluding fatalities) 0.11 0.17 0.17
iii. Number of work-related accidents with mandatory reporting 514 338 334
iii. Rate of work-related accidents with mandatory reporting (TRRR) 7.95 5.83 6.22
Number of lost-time accidents - LT Accidents 73 63 55
Accident Frequency Rate - LT Accidents + Fatalities 1.13 1.09 1.04
Accident severity rate1 82.7 123.5 242.7
v. Number of hours worked. 64,660,776 57,987,207 53,683,160

1 We calculate the Severity Rate in all countries where we operate by adding the number of lost workdays due to work-related injuries to the number of Days Debited arising from Fatalities (6,000 days) and amputations (NBR 14280 Table). This criterion is based on Brazilian legislation (which is similar to that of many other countries).

Total
B. WORK-RELATED ACCIDENTS
(OTHER WORKERS - WORKERS
WHO ARE NOT EMPLOYEES, BUT
WHOSE WORK AND/OR WORKPLACE IS
CONTROLLED BY THE ORGANIZATION)
2018 2019 2020
i. Number of fatalities as a result of work-related injury 0 1 1
i. Rate of fatalities as a result of work-related injury 0.00 0.03 0.04
ii. Number and rate of high-consequence work-related injuries (excluding fatalities) 2 2 1
ii. Rate of high-consequence work-related injuries (excluding fatalities) 0.06 0.06 0.04
iii. Number of work-related accidents with mandatory reporting 162 180 101
iii. Rate of work-related accidents with mandatory reporting (TRRR) 5.03 5.33 3.59
Lost-time accidents - LT Accidents 29 37 14
Accident Frequency Rate - LT Accidents + Fatalities 0.90 1.13 0.53
Accident severity rate1 41.3 228.3 247.1
v. Number of hours worked. 32,176,407 33,745,526 28,104,750

1 We calculate the Severity Rate in all countries where we operate by adding the number of lost workdays due to work-related injuries to the number of Days Debited arising from Fatalities (6,000 days) and amputations (NBR 14280 Table). This criterion is based on Brazilian legislation (which is similar to that of many other countries).

GRI 405-1
Diversity of governance bodies and employees

GERDAU'S DIVERSITY PROFILE

DIVERSITY -
EMPLOYEES BY
EMPLOYMENT
CATEGORY,
AGE GROUP,
AND GENDER
2018 2019 2020
AGE GROUP (%) GENDER (%) AGE GROUP (%) GENDER (%) AGE GROUP (%) GENDER (%)
EMPLOYEES Under 30 30 to 50 Up to 50 Men Women Under 30 30 to 50 Up to 50 Men Women Under 30 30 to 50 Up to 50 Men Women
Apprentices 99.0% 1.0% 0.0% 69.0% 31.0% 98.0% 2.0% 0.0% 63.0% 37.0% 89.8% 3.4% 0.2% 58.2% 41.8%
Operational 21.0% 62.0% 17.0% 98.0% 2.0% 22.0% 62.0% 16.0% 98.0% 2.0% 21.2% 60.9% 17.9% 96.5% 3.5%
Interns 95.5% 4.2% 0.3% 55.0% 45.0% 95.0% 4.9% 0.1% 54.0% 46.0% 94.7% 5.3% 0.0% 50.5% 49.5%
Administrative 26.0% 61.0% 13.0% 64.0% 36.0% 28.0% 60.0% 12.0% 64.0% 36.0% 27.2% 60.0% 12.8% 63.3% 36.7%
Specialists/
Coordinators
10.0% 67.0% 23.0% 81.0% 19.0% 11.0% 68.0% 21.0% 80.0% 20.0% 9.8% 69.5% 20.7% 78.0% 22.0%
Management 5.0% 71.0% 24.0% 86.0% 14.0% 5.0% 73.0% 22.0% 84.0% 16.0% 3.2% 75.8% 21.0% 81.0% 18.9%
Executive Board 0.0% 47.0% 53.0% 91.0% 9.0% 0.0% 48.0% 52.0% 94.0% 6.0% 0.0% 61.4% 38.6% 86.4% 13.6%
MEMBERS OF GOVERNANCE BODIES
Fiscal Council 0.0% 0.0% 100.0% 100.0% 0.0% 0.0% 0.0% 100.0% 100.0% 0.0% 0.0% 0.0% 100.0% 100.0% 0.0%
Board of Directors 0.0% 29.0% 71.0% 100.0% 0.0% 0.0% 44.0% 56.0% 89.0% 11.0% 0.0% 25.0% 75.0% 87.5% 12.5%
GRAND TOTAL 25.0% 59.0% 16.0% 89.0% 11.0% 26.0% 59.0% 15.0% 88.0% 12.0% 23.2% 59.8% 16.9% 87.8% 12.2%
DIVERSITY -
OTHER MINORITY
GROUPS
2018 2019 2020
TOTAL
NUMBER
PWD BLACKS TOTAL
NUMBER
PWD BLACKS TOTAL
NUMBER
PWD BLACKS
EMPLOYEES NUMBER % NUMBER % NUMBER % NUMBER % NUMBER % NUMBER %
Apprentices 723 57 8.0% 212 29% 811 101 12% 270 33.0% 620 70 11% 251 40%
Operational 18,373 271 1.0% 4297 23% 18,283 281 2% 5044 27.6% 20,439 370 2% 6717 33%
Interns 905 0 0.0% 199 22% 942 0 0% 250 26.5% 604 0 0% 224 37%
Administrative 3,527 85 2.0% 566 16% 3,755 80 2% 750 20.0% 4,188 109 3% 1148 27%
Specialists/
Coordinators
2,603 14 1.0% 188 7% 2,805 14 0% 282 10.1% 3,001 19 1% 429 14%
Management 838 2 0.0% 55 7% 837 6 1% 66 7.9% 900 8 1% 106 12%
Executive Board 32 0 0.0% 0 0.0% 33 0 0.0% 0 0.0% 44 0 0.0% 1 2.3%
MEMBERS OF GOVERNANCE BODIES
Fiscal Council 3 0 0.0% 0 0.0% 3 0 0.0% 0 0.0% 3 0 0.0% 0 0.0%
Board of Directors 7 0 0.0% 0 0.0% 9 0 0.0% 0 0.0% 8 0 0.0% 0 0.0%
GRAND TOTAL 27,011 429 2.0% 5,958 32% 27,478 482 2% 6,662 24.3% 29,807 576 2% 8,876 30%

Data obtained through SAP HR4, available in POWER BI. As of 2020, data have been included employees on leave (e.g. maternity leave, contracts suspended by the MP, etc.).

Data on the people with disabilities (PwD) and other minorities are not monitored in GLN and GSN NorAm. GLM Mexico, GLA Argentina and GLY Uruguay did not provide information about other minorities. Data on race are based on the employee's self-reporting.

OWN TOPIC: INNOVATION IN PROCESSES AND PRODUCTS

GER-1
Percentage of investments in innovation in relation to net revenue

Gerdau's investments in innovation and digital initiatives in 2020 accounted for approximately 2% of the company's net revenue, as in 2019.