YOUR NAME:

RECIPIENT`S EMAIL:

MESSAGE:

Employees

In addition to investing in initiatives oriented to full development of its employees, focusing on life quality, recognition and leadership, CTEEP is judicious as regards the performance assessment process, with the purpose of identifying the contribution made by each employee, following up and recognizing his/her development and participating in the development of his/her skills required for the business through professional skill development training.

CTEEP ended 2010 with 1,443 full-time employees, 21 being hired for a fixed or temporary term and 46 hired through different types of agreement (chief executive officer, officers and trainees). The total number of employees covered by collective bargaining agreements is 1,376 people, according to the number informed by CAGED (General Register of Employed and Unemployed) in December 2010. [GRI LA1, LA4]

The Company does not hire child labor and demands, through contractual clause, the same conduct on the part of third parties and suppliers. Moreover, although it does not promote any specific projects, the Company does not hold areas over its influence with significant risks for forced, compulsory or child labor. [GRI HR6, HR7]

Compensation and benefits

Upon consolidation of the third stage, in early 2011, the Program for Management of Positions and Salaries covered all the employees who were included in the Company´s wage structure. A new research is expected to be conducted in 2011 to identify CTEEP´s positioning in relation to the market.

The wage policy adopted by CTEEP, which includes compensation compatible with the level of development of the professionals, holds as reference the State of São Paulo minimum wage (R$540) and the lowest wage paid by the Company in 2010 was R$1,497 (2.78 times the value of the local minimum wage). [GRI EC5]

The hired employees are provided with meal tickets, food vouchers, basic basket (for wages up to R$ 3,996), transportation voucher and medical and dental assistance. For men and women holding the custody of their children, the Company offers daycare, baby sitter or special funding. The trainees and apprentices are also provided with a life insurance. The Company offers private retirement plan, with contributions in addition to those of the employee, and a profit sharing plan (PLR). The payment is subject to achieving the targets set by the technical/quality and economic-financial indicators, with contributions at the following proportions: 65% being equal to all employees and 35% being proportional to the wages. [GRI LA3]

The retirement pension plan, with contribution by the participant and the Company, is called Supplemental Retirement and Pension Plan (PSAP/Paulista Transmission), structured under the modality of defined benefit (DB), i.e., the benefit (amount receivable) is previously set. [GRI EC3]

Diversity

In 2009, after hiring the first 60 employees integrating the Inclusion Program for Disabled People, CTEEP reiterated its commitment to building up a culture of respect for the differences. In 2010, these professionals underwent a performance evaluation and most of these professionals’ scores were very satisfactory and they got a promotion. The Company´s target with such initiative is to enhance a culture of diversity among the employees, integrating more and more the participants of the program into the business daily routine, with no distinctions.

The principle of equality is also adopted by CTEEP as to compensation for positions with the same salary value, without making any distinction between men and women, who got a raise in their respective average salary in 2010. [GRI LA14]

Traineeship Program

Focused on the development as well as the professional and personal skills training of the participants, the Traineeship Program for university level was continued, and ended the year with 40 participants and a 70% hiring index.

During the program, the trainee participates in on-site training and educational computer-based training, development of individual projects, periodic evaluations and feedback by the traineeship supervisor. Among the benefits offered, there are monthly stipends, with values in line with the market average, meal ticket, transportation voucher, life insurance, medical assistance and a 30-day paid leave after one year of traineeship.

In 2010, a pilot-program for technical level (in electricity) was carried out at the Regional facilities- São Paulo with ten young students. At the end of the year, seven of them were hired to take positions as technicians of junior substations. In 2011 this new format is expected to be expanded to the other regional facilities, disseminating the concept of recognition of the value of the youth for the management of the Company´s talents.

Young Apprentice

With the Young Apprentice Program, CTEEP promotes the development of entrepreneurial spirit and professional skills enabling the youths to cope with the professional challenges with creativity, autonomy and ethics. The professional skill development takes place hands on; at the time the young apprentice joins the Company, where he has the opportunity to develop his skills through his daily experience in the corporate environment. The Company ended the year with 21 young apprentices working in several units.

Climate

With annual periodicity, in 2010 the fourth edition of Climate Research was performed at CTEEP, with an innovation: the survey was on-line. The results were positive: the adhesion percentage grew, from 94%, in 2009, to 96%, in 2010, and the favorability index grew up to 56% (54% in 2009). Moreover, out of the five factors followed up in the research – Resources, Autonomy, High Management, Immediate Superior and Attraction and Retention of Talents - three of them represent significant growth over the year. Such results are a reflex of action plans performed by the Company in 2009.

Volunteer Work

To foster and disseminate the voluntary practice among its employees, contributing to the development of a culture of solidarity and citizenship, CTEEP has the program Solidary Energy. Said initiatives promoted corporate actions such as winter clothes campaign and toy campaign carried out over the year.

Training [GRI LA11]

In 2010, several actions of training, professional skill development training with a view to improving employee professional activity performance were conducted. Among compulsory, normative and development training, 796 groups were trained totalizing 97,880 hour/class, 6,556 participations and an average of 68 hours of training per employee.

One of the highlights was the implantation of the e-learning modality for NR10 Recycling training, that had an average participation of 600 employees of the technical area, and NR05 – Internal Committee for Accident Prevention (CIPA), for 188 participants elected and appointed that will serve as members in 2011.

Professional Training Certification for technicians and technical assistants of substations and installation technician was also carried out over the year. Around 300 employees underwent a set of evaluations of technical, psychological and physical aspects to validate whether they were capable of performing their function, according to ONS Standards.

Corporative Education

After implanted in 2009, the Project of Corporate Education strategic modeling focusing on aligning actions of training and development with the skills required for the business and position, made progress in 2010 by defining two learning tracks: System Operator and Substation Technician.

The Company also has education incentive programs, such as undergraduate studies, technical courses, graduate studies and languages, aiming at encouraging continued Education, which may generate more opportunities of development and growth in the career. The financial aid for such initiatives benefitted more than 133 employees in 2010, in addition to those who already participate in the programs.

Evaluation per performance

In its second year of activity, the performance management model adopted by CTEEP expanded among the employees, who began to get adapted to the system and understand the purpose of the evaluation for their professional development. For 2011, it is expected to focus more on identifying development gaps.

Evaluation per skills

In 2010, the evaluation per skill model was implanted to all coordinators with the purpose of aligning the personnel with the business strategy and allow each Professional to identity its strong points to develop. Dissemination was carried out on-site, and the evaluation was carried out under the 270° model, that is, each coordinator made its own self-evaluation and was evaluated by his/her manager and two peers. All participants received the results through individual feedback with external consultancy.

Organizational management

To support the Company´s strategy, the organizational management area was implemented in the year 2010, with the purpose of planning and measuring the staff, recording the authorities and duties of each area, evaluating the organizational drawing, proposing structuring methods, description, valuation and criticity of the positions, planning careers and designing the performance and skills management models.

Knowledge and Innovation Management

Based on the project of Knowledge and Innovation Management modeling started in 2009, CTEEP developed a strategic approach to ensure a better use of the knowledge, in a systematic manner, contributing to accomplishment of the business strategic objectives and assuring the level of service quality rendered to customers. The capture of external knowledge on technological trends and their mobilization for the innovation processes were also part of such approach.

In 2010, the program made progress by performing several activities, with prominence to the completion of CTEEP knowledge maps: 107 bits of knowledge were defined in 23 areas, eight of which being critical.

The initiative involved mapping of the Company´s critical knowledge, based on the identification of the areas of knowledge with greater impact, which were prioritized according to the criteria related to the relevance of the topic and risk of loss of intellectual capital. Based on these inputs, knowledge management strategic guidelines were set out, as well as a portfolio with initiatives oriented to sharing and disseminating the intellectual capital.

The initiatives were organized in pilot-projects and implemented in a structured and systematic manner, to be incorporated into the company´s processes and practices. Among several actions developed over the year, the specialists’ panel made to support the technological prospection Cornerstone stands out.

Health and safety

In 2010, CTEEP expanded the scope of Life Quality Program, created to revive in the employees the importance of physical activities in their daily lives. Because of this, physical exercises started to be developed in all regional facilities, in addition to the Company´s headquarter, where the program was launched.

Another relevant initiative was the Safety training for Rescue from Height in all the regional facilities, which met a demand made for over three years, and NR33 – Confined Space training, which was conceived based on mapping of the spaces regarded as confined in the substations, promoted by an external consultancy.

To preserve the employees´ health, CTEEP continued to perform the Occupational Health Examinations, which involved all clinical, laboratory follow-ups of several human health aspects. It also maintained publication of the magazine Revista 1.a Linha, with bimonthly periodicity and 1,600 copies printed, sent to the house address of each employee. The magazine addresses several topics related to business and to life quality, such as physical exercise practice, immunization against diseases, occupational health and safety. [GRI LA8]

To motivate the analysis and discussion of issues related to occupational health and safety, CTEEP maintains a Parity Commission between the Company and the labor union. Among the topics related to safety and health covered by formal agreement with the labor union, the following ones stand out: permission for employees older than 50 years to enjoy the vacations divided into periods; maintenance of dental examination, as part of periodic medical examination; maintenance of employee´s salary in functional readaptation induced by workplace-related accident, etc. Furthermore, it holds a regressive salary complement, applied in cases of leave for more than 15 days, due to diseases relate or not to work. [GRI LA9]

CTEEP supports the participation of employees in formal safety and health committees, which help to monitor and advise on occupational safety and health programs. Like in 2009, in 2010 204 ordinary monthly meetings, 112 plenary monthly meetings were held by the Internal Commission for Accidents Prevention (CIPAS). Managing term of formal committees which was two years up to 2010 came to be one year in 2011. [GRI LA6*]
*Employees covered by CLT contracts were considered for such indicators.

Over the year, the following activities were also promoted:

• Ergonomics analysis of maintenance activities in transmission lines, substations and telecommunications.
• Technical diagnosis of CTEEP facilities, for OHSAS 18.001:2007.
• Implantation of the SST management computerized system.
• Inclusion of quantitative measures of noise and chemical agents in the Environmental Risk Prevention Program (PPRA).