Fairness and Concern for Employees

The Westport Fuel Systems team is a highly competent and experienced global team of engineers, manufacturing technicians, and business leaders with expertise in alternative fuel systems, combustion technologies, cryogenics, fuel storage and delivery systems. They are leaders in their respective professional and commercial fields. A high degree of employee engagement and our commitment to our shared values remains essential to our business success.

Our Global Workforce

As of December 31, 2019 our workforce worldwide was 1,289 individuals, which includes direct employees and individuals employed through third party agencies or contracts.^[4] This is compared to a previous year total workforce of 1,249. The table summarizes our total global workforce, including new hire and turnover rates.

Table 10: Total Global Workforce Including New Hire Rate and Voluntary Turnover Rate for 2019 Ended December 31 (Unaudited)

	North America	Latin America	Europe	Asia Pacific	Global Total
Total Employees at Dec 31, 2019	210	92	928	59	1,289
New Employee Hires	24	11	143	7	185
New Employee Hire Rate[5]	6.61%	11.64%	11.01%	7.91%	14.58%
Voluntary Turnover Rate[6]	6.34%	0.00%	2.46%	3.39%	4.57%

Labour Relations

We strive to develop constructive and stable relationships with our employees and the organizations that represent them, and to negotiate the terms of our agreements in good faith. Of our total workforce the regions represented by labour unions are in Italy, Sweden and Argentina.

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^{[4] Total workforce of 1,289 differs from the previously reported total global workforce in the 2019 Annual Information Form due to a previously incorrect classification of some workers, who should be considered part of our workforce count.
[5] Calculated as number of employees hired divided by average of beginning and end of year headcount.
[6] Calculated as number of employees with voluntary resignation divided by average of beginning and end of year headcount.}

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Workplace Diversity

We recognize the value in attracting and retaining a diverse workforce of talent with varying skills, experiences and viewpoints. Diversity and inclusion enriches discussion and debate and facilitates a broader exchange of perspectives, which in turn, will enable innovation, enhance balanced decision making and improve business performance leading to greater organizational strength. Diversity drives our innovation.

Our global Diversity Policy was published in July 2019 and formalizes the Company’s position on diversity and to set out the guidelines by which we will endeavor to promote diversity and inclusion. A more diverse organization will better reflect our global relationships with customers, employees, shareholders, business partners, and other stakeholders and supports sustainability and social responsibility objectives. A copy of the Diversity Policy can be found on our website at https://wfsinc.com/investors/corporate-governance/.

The image below outlines our gender diversity across the organization, including a table summary of gender diversity at the management level. We are proud to have increased the gender balance of our Board year over year and between now and the next issuance of our report will investigate areas where our diversity, including beyond only gender, can be enhanced to reflect the diverse and inclusive organization we strive to be.

Table 11: Summary of Management Gender Diversity (Unaudited)

Gender Diversity of Management
As of December 31, 2018	18%	82%
As of December 31, 2019	17%	83%

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Global Training and Development

A key element of our success is our ability to attract, retain and develop a skilled team. Our business requires a broad range of technical, operational, financial, and marketing skills as well as appropriate industry experience from new product development, to operations, to new business development. The Company needs to attract, develop, and retain innovative and strategic thinkers who have an entrepreneurial spirit and customer first focus. This rare combination of skills, experience, and competency will require us to continue to retain our employees, deliver on leadership development, manage succession planning and strengthen our global recruitment ability.

In 2019, key training initiatives focused on the following topics:

• Anti-Bribery and Corruption (global),
• Code of Conduct (global),
• Cybersecurity (global),
• Global Privacy, including General Data Protection Regulation (region specific),
• English Language Lessons (site specific), and
• Health & Safety (site specific).

Including both in-person and online training mediums with total global hours of training in 2019 of 21,584; this amounts to an approximate average of 17 hours per employee.

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Health and Safety

Westport Fuel Systems is committed to an operating philosophy based on fairness and concern for employees, customers and the communities in which it operates. The health and safety of our employees and their active participation in ensuring a safe and healthy workplace is an integral part of our operations. Our Joint Health and Safety Committee members are champions for workplace safety and help to monitor, collect feedback and advise on programs and initiatives. More than 96% of employees work in facilities with a formal joint management-employee health and safety committee. Our Committees are made up of cross-functional management and employee representatives who advise and recommend action on any workplace health and safety issues brought to them.

When gauging world-class safety performance, recordable injury rates and lost-time injury rates are statistical, comparative industry measures. The increase in our 2019 lost time injury rate has made us refocus our efforts and commitment to injury prevention, risk mitigation, regulatory compliance and continuous safety improvement. For example, we are taking steps to increase and sharpen our global health and safety reporting, increase visibility to risk areas and mitigation initiatives.

Recordable Injury and Lost Time Frequency

Table 12: Summary of Global Health and Safety Recordable Injury and Lost Time Injury Rates (Unaudited)

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Community Involvement

A community organization is one that supports work in the areas of health and human services, education, culture and the arts, civic and community engagement and the environment. Core to our values, we strive to ensure the way we do business has a positive impact on our people, the environment and the communities in which we work and live. 

Initiative Spotlight

Vancouver Employees Give Back to the Local Community Our Vancouver location has a long history of partnering with United Way of the Lower Mainland (www.uwlm.ca), a local non-profit organization focused on building a healthy, caring, inclusive community. Their primary focus areas are helping kids and youth succeed, supporting healthy aging for seniors, and building healthy connected communities. In 2019, the Vancouver team launched their annual United Way Campaign and raised over C$58,000. Since 2003, our cumulative United Way contributions exceed C$1.5 million.

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