Talent Management and Labor Practices - KUO

KUO - Talent Management and Labor Practices

At KUO, we have solid Human Capital processes designed with a comprehensive approach ranging from the attraction and development of talent to the retention of our key collaborators. Additionally, we ensure that all aspects related to roles, working hours, compensation, recognition and development of organizational capacities are aligned with our internal policies and procedures:

Internal Work Regulations and Codeof Conduct
Talent Identification and Recruitment Policy
Annual Development and Training Plans
Performance Management Process
Succession and Development Plans

We monitor the effectiveness of our Human Capital practices using consolidated indicators specific to each business, presented on a cloud platform. We analyze key aspects such as workforce satisfaction, productivity and compliance with the collective bargaining agreement. Based on this information,we implement continuous improvements aligned with the objectives and goals of each business.

Additionally, promoting talent management that encourages good performance at work and the generation of value, we design Human Capital strategies focused on strengthening both performance and organizational culture.

At the end of 2024, the Group employed a total of 24,780 collaborators. Their distribution by age, gender, location, type of workday and contract is detailed below.

Occupational Safety and Health

We responsibly undertake the commitment to guarantee that our business operations are developed in safe and healthy environments. This commitment is reflected in our Occupational Health and Safety Policy, defining the guidelines to protect our collaborators, prevent injuries and mitigate risks, ensuring working conditions that promote their wellbeing. Additionally, to comply with the highest standards and applicable regulations, we have an Occupational Health and Safety System covering the entire process, from risk identification to the implementation of care and control measures.

During 2024, the Accident Frequency Rate (AFR) reached a value of 1.64. In the same period,175 accidents resulting in disabling injuries were recorded.

Identification and Management of Health and Safety Risks
‍Occupational risk prevention and health surveillance are fundamental pillars in our company. For this reason, we continuously monitor the workplace to detect any risk situation in a timely manner. This allows us to make decisions based on accurate information and guarantee safe conditions in all our work centers.

Every year, in collaboration with the Human Capital, Operations and Security departments, we perform collective health surveillance on our workforce, focusing on the specific risks associated with each job and complying with current regulations. Additionally, we investigate possible links between exposure to occupational hazards and health problems, implementing actions to continuously improve working conditions. We actively promote the participation of our collaborators in these processes, guaranteeing their involvement in the identification and management of risks.

Health Services and Promotion
‍We promote the well-being of our collaborators through various initiatives aimed at caring for their health. Our occupational health program in corporates periodic evaluations facilitating the detection of occupational illnesses and strengthening risk prevention.

Additionally, we implement actions designed to improve the quality of life of our collaborators and their families, such as medical check-ups, health campaigns and various wellbeing initiatives. Through the Wellbeing Program, we promote healthy habits focused on four key aspects: emotional wellbeing, financial stability, physical health and social and work-life balance.

Communication and Occupational Health and Safety Committees
‍We involve our collaborators in strengthening the Occupational Safety and Health System, implementing various consultation and participation initiatives, such as Safety Meetings, Safety Committees, workforce meetings and other events. These actions, integrated into our Participation and Consultation Plan, are intended to foster constant and constructive collaboration between the company and its collaborators, while strengthening the culture of prevention.

Trainingin Occupational Health and Safety
‍We provide continuous health and safety training to our collaborators, guaranteeing that each one receives a complete induction into our Safety Policy and the Safety Management System. Additionally, we offer specialized training in key areas such as high-risk activities, emergency brigades and accident investigation techniques. These initiatives ensure that our teams acquire the knowledge and skills necessary to maintain a safe work environment and prevent incidents.

Compensation and Benefits

Providing a fair and equitable salary to our collaborators is one of our priorities. We have policies providing the necessary guidelines to guarantee compensation, based on the results of performance management, aligned with both corporate strategy and the particularities of each business.

The base salary of our collaborators is determined using internal tabulators considering the level of valuation assigned to each position based on their contribution. Additionally, we constantly monitor salary trends in the countries where we operate, ensuring that our practices are competitive and fair.

Remuneration is linked to the individual results of each collaborator, as well as to the performance and financial situation of the businesses. With the purpose of recognizing good performance and ensuring the retention of key personnel, we have implemented short- and long-term variable compensation schemes. These schemes not only encourage our collaborators to achieve their objectives, but also align their interests with those of the company, fostering management focused on the generation of value and promoting long term commitment.

We comply with all the benefits required by law in the countries where we operate and, additionally, we offer extra benefits that strengthen the well-being of our collaborators. These include medical insurance, life insurance, food coupons, a savings fund and paid leave for extraordinary circumstances, among others.

The compensation of the Chief Executive Officer and other key executives is defined on the basis of an analysis conducted by the Human Capital Department, which is presented to the Corporate Practices Committee for review and subsequent approval by the Board of Directors, in compliance with established policies. This process is supported by international compensation consultants, who analyze salary trends in the relevant markets.

Parental Leave
‍As part of our commitment to gender equality and work-life balance, we guarantee the right to Parental Leave for all members of our team. In 2024, 677 collaborators used this benefit, of which 65% returned to their duties. Furthermore, 20% remained in the company 12 months after their reinstatement.

Retirement
‍We comply with all legal obligations so that our collaborators can access their retirement systems in accordance with current legislation. We also offer an optional scheme that allows for voluntary monthly contributions, which we supplement with an additional percentage, based on the age and seniority of each collaborator.

Collective Association Agreements
‍‍In the company, we reaffirm our commitment to absolute respect for the labor rights of all our collaborators, in strict compliance with current legislation in Mexico and the fundamental principles of freedom of association. In accordance with our philosophy of respect and impartiality, we guarantee that all employees have full freedom of association and the right to decide, without external pressure, whether they wish to join a union or freely elect their union representatives. We are committed to respecting and protecting the individual and collective decisions of our collaborators, without interference of any kind. We recognize and adopt the principles established in the recent Labor Reforms, particularly those enshrined in articles 358 and 371 of the Federal Labor Law, which guarantee freedom of association, democracy and transparency in union relations. In this context, we reaffirm our position of neutrality towards any process of union organization within our company.

66% of the collaborators have Collective Labor Agreements.

Training

We are committed to the development of our collaborators, and we offer them opportunities for continuous education through various training programs. These include specialized technical training for each business area, which allows our team to perform their tasks more effectively. Additionally, we focus on the development of soft skills that contribute to the integral growth of our collaborators.

Our courses are delivered both in person and online, guaranteeing access to all our collaborators, regardless of their location.

During 2024, 266,929 hours of training were provided, with an average of 26.8 hours of training per collaborator.

We are convinced that investing in the education and development of our collaborators is fundamental for the sustainable success of our company.

Consumer
‍In the Pork Meat Business, we provide training in environmental management, food safety and quality. We offer courses on waste management, environmental legislation, animal welfare and different international certifications. We also address good manufacturing practices, traceability and allergen control, guaranteeing compliance with high standards in the sector.

Industrial
In the Chemical sector, we provide training in technical subjects, Occupational Safety and Health, crisis management and emergency brigades. Additionally, we offer courses on leadership, human behavior, Business Ethics and Sustainability, strengthening the competencies of our team and ensuring a safe and efficient work environment. In the Automotive sector, we offer technical training in various areas, as well as training in diversity, inclusion and skills development. We also prepare our team to respond to emergencies, such as first aid, evacuation and firefighting, and we encourage continuous updating through train-the-trainer programs.

Performance Management
‍Performance Management is a fundamental process to ensure the growth, development and recognition of our collaborators. This process allows us to identify the strengths and areas of opportunity of each team member, facilitating the creation of personalized development plans. Through periodic evaluations, we measure the performance of our collaborators based on their individual objectives and the strategic objectives of the company, thus ensuring a continuous alignment with our vision and mission.

The Performance Management process is implemented in a comprehensive and transparent manner. We use a combination of self-assessments, evaluations conducted by supervisors and peer feedback to obtain a complete overview of the performance of each collaborator. This methodology not only allows us to evaluate the fulfillment of goals and objectives, but also to assess key competencies such as teamwork, innovation and leadership. Continuous feedback is essential to foster an environment of constant improvement and motivate our collaborators to reach their full potential.
‍
Additionally, performance management results are used as input for decisions regarding promotions, salary increases and training programs. By linking performance management with compensation and professional development, we ensure that our collaborators feel valued and recognized for their contributions. This integral approach boosts the commitment and satisfaction of the workforce, strengthens our organizational culture and contributes to the sustainable success of the company.

In 2024, the performance of 35% of the collaborators was evaluated.