Since January 2014, Itaipu binationally adopts the Career and Compensation for Skills Plan (PCR) as a way to establish a reasoned policy on meritocracy and clear career prospects and professional development aligned with corporate strategy. Employees hired until December 31, 2013 were able to choose whether to join the PCR or remain the Job and Salary Plan (PCS), in force since 1989.

The Itaipu policy is to hire through a selection process in the career base, i.e., the initial positions and, from there, develop the professional according to business need. The PCR, knowledge management and succession program are part of the Integrated Personnel Management and aim to support business decisions on the development of management and non-management career of the entity’s employees.

The base salary and remuneration are set considering the specifics of the function and qualification, so there is no difference between genders

Each position has a salary range with starting salary and enclosed end and movements are regulated by the career plan. For the functional raise there are four requirements that must be met: the availability of vacancy, good performance, education and time in office/complexity.

In Itaipu’s staff there are professionals exclusively dedicated to the study of remuneration mix. The salary scale is adjusted on the base date in November, as the market and negotiation held with the unions. At least every two years the entity promotes or participates in salary and benefit surveys, comparting itself to companies in the energy sector and other same-sized companies in the Brazilian market. The results serve as a reference and positioning parameter in the market. Moreover, organizational climate surveys are carried out to identify areas for improvement in various fields of work, including remuneration.

Every year Itaipu negotiates with the unions the terms of the collective bargaining agreement conditions. Economic indicators, percentage increases, career planning, benefits, equity results and workers’ obligations are also discussed. During the contract period regular meetings are held to monitor the implementation of what was agreed and new subjects are discussed.

The remuneration of Brazilian members of Supervisory Board and directors is determined by the Federal Government, represented by Eletrobras, and in agreement with the Paraguayan government, as stipulated in Annex C of the Itaipu Treaty.

The results of the mathematical ratio of earnings by gender (shown in the table below) are the result of the general average of a gender divided by the overall average of the other, for both base salary and for the remuneration. To set the base salary and remuneration, Itaipu takes into account the job, the professional qualifications and salary balance among the other employees of the same office. Wage/functional adjustments (job promotion) are also defined without gender distinction.

The number of management positions held by men and women is balanced compared to the staff’s gender proportion. One of the requirements for evolution is time at the company, and in this regard, for example, the male gender average was higher in three years in 2015. Most of the positions that receive extra (hazardous, unhealthiness, painfulness, etc.) is occupied by men (mechanics, technicians, operators, electricians, security guards, etc.), causing deviation in average pay, not for earning more, but for the activity being exposed to risk.

Standardizing the structure of pay scales of Brazilians and Paraguayans is a topic discussed recurrently by the unions, which was repeated in 2014. At the time, the company said the unions would need an appropriate period of time to promote the studies with proper technical analysis, simulation calculations, economic and financial impacts on the sheet and the pension plan, and the actual size of the reflections on the career and remuneration of its about 3,200 Brazilian and Paraguayan employees.

Thus, a Binational Working Group was created to analyze the situation and facilitate sustainable and balanced solutions in the pursuit of effective quality of treatment to the entity’s pay scales, with the challenge of presenting results of studies within the time limit agreed by unions, by 31 July, 2015.

On 29 July 2015, even in a time of difficulties in the economic scenario, the company presented the unions a binational proposal for new tables with the sale salary curve for both sides, the same degree of 1.5% between each sublevel of the salary scale and the same range of 10.99 times between the lowest and the highest salary (which was 17 times in Brazil and 12 times in Paraguay). I.e., structurally identical tables between Brazilian and Paraguayan employees.

Joining the new table was voluntary, it would be up to the employee to decide freely whether they would migrate or not. On the occasion, the company was also committed to study binational solutions on any salary categorization until June 30, 2016.

However, the unions did not agree with the proposal. New meetings between the parties continued until September 15, 2015, when the company reaffirmed the benefits of implementation of the new salary scale. It also reiterated that the measure did not exhaust the debate on other advances sought by workers, for example, the study of recategorization, scheduled for the month of June 2016. Even so, there was no agreement and the strike was triggered on the following day. Itaipu recognized and respected the right to strike, which is guaranteed by the Constitution and provisions of Law 7,783/89.