Results from 2008 factory assessments showed that factories have implemented the Labor Conditionrvtandard into employment processes well, although some areas were highlighted for further improvements.

1) Working hours
Shifts are built according to local laws and Nokia Labor Condition Standard.

However, sometimes during the peak production period some employees chose to work more than 60 hours per week and not to take their day off. Although overtime is voluntary, and in some countries the local law does not limit weekly working hours at all, it was recommended that factories improve their processes to be able to better monitor that one rest day after every six days of work is guaranteed and that no overtime leading to exceed total working hours of 60 per week is approved.

2) Compensation

All factories pay above legal minimum wages for all employees and overtime is compensated at a premium. In addition to wages employees receive production-based bonuses and additional benefits, which have been defined by each factory to respond to local needs. Examples of such benefits are free meals and transportation, health services, dental care, food purchasing cupons for local stores and gyms. All these add up to the total compensation.

The only two findings in this area were related to termination pay and one incorrectly paid salary, which was due to a payroll system change. Recommendations were given to correct the errors and enhance the processes so that no errors like this would occur in the future.

3) Discrimination
No evidence on discrimination was found in any of the factories.

The two recommendations were given to improve the documentation of the discrimination policy and eliminating age limits from job advertisements.

4) Freedom of Association (FOA)
All factories respect the freedom of expression and right to join associations. Assessments found that employees in Nokia factories have a right to choose how they are represented. In factories were employees are not represented by labor unions, or where labor union is not democratically formed, employees have organized themselves in works councils. Employees freely elect employee-members in these councils. Works councils have both employee and management members. They meet regularly and are formed to discuss and solve any workplace related issues. Employee testimonials show that these councils are highly appreciated and are also efficient ways of communicating with management.

A recommendation was made in one factory to change the selection process of the employee representatives to make it more democratic; although the system complied with local laws and employees are able to volunteer to be candidates, the final selection from the volunteer list is not done by employees themselves. This change has already been implemented.

5) Forced labor
No issues arose on use of prison or bonded labor. Most of Nokia factories have arranged bus transportation for their employees. The auditors found bus schedules to be well aligned with shift timings allowing enough time for changing clothes, but also not too long waiting time at the beginning/end of a shift.

An improvement area was detected in one factory related to compulsory overtime practice. The facility was instructed to cease the practice immediately and to develop an overtime policy ensuring that overtime is always voluntary. This has now been corrected.

6) Child labor

Auditors did not find any evidence of child labor in Nokia factories. The minimum age of employment was verified to be 18 due to shift work requirements. Some factories are selected by local governments to partner with technical schools and universities in apprentice or trainee schemes, in order to support education and development, and ideally provide employment opportunities.

Although Nokia operates in an industry where child labor is highly uncommon, we have developed a remediation process in case a child under 15 years of age (or older if local law so defines) is found working in one of our factories. Remediation would cover, for example, education until the child is no longer a child.

7) Disciplinary practices
No issues regarding disciplinary practices were found in the assessments. All Nokia factories have implemented a progressive warning procedure, and do not allow fining as a disciplinary measure.

8) OHS
Issues found were related to personal protective equipment (PPE) use (mainly earplugs), first aid kit stocks and fire safety. Despite employees being required to use this equipment a small number were choosing not to do so. Factories were advised to increase employees’ awareness of the benefits of using PPE, improve the process for filling first aid kits, and ensure adequate number of trained people with first aid and fire safety skills.

All findings have an action plan in place and those factories with an action plan have been scheduled for a reassessment during the first half of 2009 to ensure full compliance with the framework.