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Pinnacle West’s number one asset is its employees. The company offers a wide array of career opportunities in leadership, professional, administrative and internship positions, as well as union and non-union positions. As of December 31, 2005, Pinnacle West had approximately 7,300 employees, including the employees of its subsidiaries. Of these employees, approximately 6,400 were employees of APS, including employees at jointly-owned generating facilities (approximately 3,000 employees) for which APS serves as the generating facility manager. Approximately 900 people were employed by Pinnacle West and its other subsidiaries.
At Pinnacle West, our goal is to treat every employee equitably, professionally and with respect. We have a highly-skilled human resources group dedicated to ensure that labor and employment issues are addressed. We also have internal policies that spell out employees’ rights, and an established code of conduct that all employees are expected to follow. The company also offers an Employee Concerns Program (ECP) through which employees can anonymously report any suspected wrongdoing.
Code of Conduct and Ethics
Pinnacle West has specific policies in place to ensure a high level of corporate conduct and ethics, including:
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Corporate ethics
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Corruption & bribery
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Discrimination
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Confidentiality of information
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Money-laundering and/or insider trading/dealing
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Security of staff, business partners, customers
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Environmental, health and safety
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Whistleblowing
These policies are summarized in an internal booklet called "Doing the Right Thing." Employees receive a copy of "Doing the Right Thing" when they join the company and are provided updates periodically throughout their employment. In addition, Pinnacle West makes the book available for viewing by our external stakeholders on our Web site. All employees are required to take annual training on corporate conduct and ethics, and to pass an assessment on that training.
Attracting Employees
Our company’s Web site connects potential job seekers with employment opportunities as well as information about our family of companies.
The company’s School-To-Work (STW) internship program and scholarships introduce students to virtually every part of our business from engineering to trades and crafts to information systems. Students are recruited for positions throughout the Pinnacle West family of companies. STW targets students who are attending community colleges or universities, or who are enrolled in vocational programs tailored for the utility industry.
In 2005, APS’ STW program remained on track with its recruitment of targeted interns and graduates to support the company with a talented workforce. While 2005 continued be a very competitive year for new graduates, APS maintained its position to ensure its trained graduates would accept offers. Of the eligible graduating seniors, 29 graduates accepted regular full-time employment. This is a strong return on investment for the company as the decisions of our interns demonstrate their loyalty and continued commitment to APS. Also in 2005, 118 student interns participated in our STW program.
Job candidates come from far and wide in response to opportunities posted on the company’s Web site. Of job candidates offered employment in 2005, 72 percent accepted positions with APS or Pinnacle West. Our turnover rate in 2005 was 3.14 percent.
Total Rewards
Our company offers competitive compensation and rewards for outstanding performance. APS offers competitive salaries, comprehensive benefits and a sound work environment. All of our full-time employees are covered by a defined benefit plan and approximately 80 percent of our employees participate in our defined contribution pension. About 3.5 percent of the outstanding shares of PNW are held by employees. PNW's compensation and benefits plan are discussed in more detail in the Pinnacle West Web site.
Employee Relations/Union Representation
As a company, when we approach employee relations, we try to find a common ground for resolutions. Our human resources department takes an interest-based approach, looking for a place where the interest of the employee and the company’s interests intersect. The company also offers employees a wage and benefit package that is comparable to any company in the state.
Pinnacle West and APS enjoy a healthy mutual respect with local International Brotherhood of Electrical Workers (IBEW) Local 387, the largest union representing employees within the company. Through this partnership with IBEW, several initiatives have been implemented, including a multi-skill-training program, a process to hire supplemental workers, a drug-free workplace program, an apprenticeship program, a driver qualification program and numerous safety projects. The Union and the company often join in community-minded causes such as the Valley of the Sun United Way's Community Service Fund campaign and a baseball field building program with Major League Baseball’s Arizona Diamondbacks.
As far as the company’s relationship with its union employees, Human Resources Manager Kevin Salcido outlines the company’s philosophy as follows: “We respect the rights of our union employees to bargain collectively. We strive to retain positive labor relations and we always try to resolve issues internally and at the lowest level possible to ensure positive outcomes for the employee and for the company.”
The company also has a positive discipline program in which leaders work in conjunction with employees and human resources representatives to achieve positive resolution.
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