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Employee Relations and Communication

Effective communication with employees is important and in particular, face to face dialogue. Communication is exchanged through in house magazines, attitude surveys, regular news bulletins, presentations to staff and team briefings. Employees are also encouraged to access the group’s corporate intranet, sustainability intranet and website.

The company supports employee share ownership and employees have the opportunity to participate in share ownership plans, where practicable. Under these plans, employees can buy shares in the company which are matched by a company funded component. Employees in six countries are able to contribute to a company share ownership plan or a 401k approved savings investment plan. Through these ownership plans Johnson Matthey’s current and former employees collectively held 1.83% of the company’s shares at 31st March 2010.

Johnson Matthey also sponsors pension plans for its employees worldwide. These pension plans are a combination of defined benefit and defined contribution pension arrangements, savings schemes and provident funds designed to provide appropriate retirement benefits based on local laws, custom and market practice. In 2009/10 there was a major change to the Johnson Matthey Employees Pension Scheme in the UK (JMEPS). Following a full consultation exercise with around 2,000 employees who were affected by the change, from 31st March 2010 those employees ceased to accrue further benefits based upon their final salary. From 1st April 2010 those employees will accrue benefits based upon their career average salary and may also make defined contributions to their pension which are matched by the company up to 3% of pensionable pay. This is in line with the pension arrangements for UK employees who joined JMEPS since 2006. These actions were deemed necessary to preserve the long term strength and integrity of the pension funds and of the company itself. The design of the career average section of the scheme is geared to providing overall benefits of a similar level to the previous final salary section but has removed or reduced some of the liabilities that the company could potentially face in the future. The changes only affected UK based employees.

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