PAY POLICY

The Inditex Group’s wage-setting criterias are common across all areas of activity and specific for each of the markets and working environments where we operate. That’s why one of our main aims is to extend flexible pay to employees in all areas of activity in our company, from stores to central services and logistics.

In 2016, Inditex’s staff costs were over 3.6 billion euros including fixed and variable wages and social security contributions. Within this total, and with regards to 2016, we have distributed a total of 493 million euros among the workforce in bonuses and variable pay. These amounts were paid out monthly for sales commissions and stores, benefits and incentives, all of which were associated with specific targets.

Another aspect where we have improved in the area of wages is in our search for formulas tailored to the interests and priorities of our employees within the framework of the labour law in force in each country. With this aim in mind, in 2009 we introduced flexible pay in Spain, allowing employees to choose products and services that provide them with tax savings such as medical insurance, restaurant cards or childcare services, among others. In 2016, more than 34,000 Inditex employees benefited from this system.

In terms of benefits, we have also developed the service More 4 Less, a discount club designed to help employees save on their shopping, thereby increasing their purchasing power. The service offered via a specialized web and mobile portal giving access to substantial discounts on global and local suppliers of travel, cars, insurance, banking or telephone services and more. More 4 Less is currently present in Spain, Portugal and Italy.

INet: THE INTRANET FOR INDITEX EMPLOYEES

INet is the intranet for Inditex employees, available as a website format and mobile application. Designed as a space for interaction between employees and the company, the aim is to make it easier for workers to access corporate or personal information linked to their job contract, such as their wage slip, letters setting out targets for variable pay, or products that they have contracted via the flexible pay system.

INet also provides access to other services linked to the everyday operation of the company, such as booking rooms, a tool for providing evidence of expenses and allowances, or even viewing canteen menus. It features news on the company and benefits for employees.

OCCUPATIONAL HEALTH AND SAFETY

Our commitment to achieving the highest standards of Occupational Health & Safety Management has led us to continue implementing the OHSAS 18001 accreditation system in our subsidiaries and brands. Internationally renowned in its sphere, the OHSAS standard facilitates full integration of occupational risk prevention, complying with legal obligations and improving the health and safety conditions experienced by workers. Achieving this accreditation requires the involvement of all of the company’s brands and departments.

Portugal achieved certification in 2016, while certification was also renewed for Italy, the United Kingdom and Ireland. These newly certified countries complete the range of store, logistics and factory businesses in Spain.

(*) Data corresponds to the tax year 2016 and covers 100% of the workforce in Spain.
(**) Incident rate = (Number of accidents resulting in leave*1,000) / average number of workers
Frequency Rate = (Number of accidents resulting in leave*1,000,000) / (number of hours worked in a specific period * average number of workers)

ENCOURAGING HEALTHY LIFESTYLES

At Inditex we encourage and promote different “Healthy Company” activities that range from campaigns encouraging people to look after their heart and cardiovascular health or anti-smoking campaigns to the promotion of sporting activities at our work centres. In 2016 we also made progress on expanding medical care to employees in the workplace. This means that we have renewed all of our medical services and expanded our medical exams as part of health surveillance activities in all of Inditex’s companies in Spain.

Moreover, for World Day on Safety and Health at Work on 28 April in 2016 we have held various informative and awareness raising activities in 47 countries where the Group is present as part of the campaign How to Enjoy a Healthy Day.

Also in 2016, Inditex developed a range of initiatives to promote the health of our employees, in particular in the areas of stores, manufacturing and logistics. These initiatives included the installation of defibrillators for public use in all buildings measuring more than 700 m² in the Basque Country, with specific training on how to use that equipment.

There were also courses to improve musculoskeletal disorders in all of Inditex’s and factories, in Zara Logistics and Bershka Design. Various voluntary seasonal flu vaccination campaigns were also implemented for all employees in central offices in Spain.

Meanwhile, employees in Massimo Dutti and Oysho stores in Spain receive training on the measures required when working standing up, advice on posture, and sleep guidelines. In Germany, store employees were able to take part in activities to promote physical activity, including the issue of Thera-Band elastic exercise bands, head massages, and a book of exercises.