HR EBITDA IMPACT

Manpower Effectiveness/Productivity

Through traditional HER Means

Recruitement

Staffing

Employee Mix?

Exit strategies

Phasing-out of employees?

Alignment

Performance

Dialogue

Review double-dipping problem

Redefine individual performance

Learn to deal with performance issues directly

Clearly

With honesty

Without being politicaly correct

Organizational Performance

Focus on key initiatives / Don't get sidetracked

Redefine organizational performance

Development

Workplace

Org. Design

Encourage flexibility and adaptability

Encourage Internal Mobility

Autonomous teams

Multi Skilling

Empowerment

Review spans of control

Historical budgeting pratices VS zero based

Optimize organizational structure

Less siloed

Build accountability

Change Management

Realize project promises

Portfolio management

Priority & capacity planning

Go further with past investements

Incentives

Labor Relations

LR Strategy

Manpower planning / forcasting

Multiskilling

Performance management

Work organization

Ratio of FTEs VS contractors

Personel scheduling

Coaching

Management rights

Win-Win model

International context

Global competition

Build links with central Union office

Build trust with local Union executives

Enemies?

Partners?

Nobodies?

Communications sub-strategy

Manpower Costs

SLC CAN & US: $253M per year (Salary, OT, fringe, Payroll Taxes)

Hourly

Base Wage

No gains realy possible

Introduced Skills-based pay?

Variable (OT, Premiums)

25% of our costs relate to Hourly overtime ($13M of OT on $48M base)

Local control & management

Use management rights correctly

Are there portions of OT that we have control over?

What explains the significant reduction of OT over the last 3 years?

Benefits

Harmonization

Focus on segments

Payroll Taxes

WSIB

Salaried

Base Comp.

Market Driven

Total Comp. Strategy

Compa-ratio SLC: 1HUS: ?Avg. Comp: 70K$2.4 M salaryincrease 2007 (3.5%)We are currently 5% to 10% under our target policy postion (we are supposed to ba at 65% but we are at 55% of our target position)

Compress Comp. to preserve EBDTDA?

Increase Comp to stay competitive?

Is our Comp. policy correct?

Is off-shoring or outsourcing an option?

Should we segment our Comp. policy by employee category?

Keep 65% policy bu correct it with the variable compensation part?

Do we have this discipline to go this way?

Subtopic

Upward pressure on base Comp. due to scarcity

How do we reduce our dependance on external hires?

Introduce skils-based pay?

Variable

Benefits

Review DC formula

Generous enough face to the market?

Phasing-out options for older employees

Payroll Taxes

WSIB

Contractuals

$9M in consuting expenses in 2006$1.7M in IT Approx. 4% of overall manpower expenses

How many are FTE substitutes?

How can we track & monitor them?

Consultants/Third Party

What and where are our current consulting costs?

Can we drive them lower?