RECURSOS HUMANOS

In 2006, efforts were intensified to align human resources management policy in the various businesses that make up the Company, with the aim of establishing standardized criteria of operation and the evaluation of people and results.

During the year, several initiatives were carried out, including the mapping and redefinition of roles and salaries, linked to the result each position generates for the organization.

CSN is aware that it needs to be proactive manner to attract, develop and retain talent. Technical competence, flexibility to deal with constant change and a focus on results are the main attributes desired of the Company’s employees, whose conduct must be characterized by a high standard of ethics and professionalism.

The Company – including affiliates – ended 2006 with 13,640 employees, compared to 12,396 the previous year.

Employee involvement in management

CSN’s organizational structure has evolved constantly, with the aim of making the operations of the Company more flexible and enabling it to provide faster responses to customers and the market, always bearing quality and competitiveness in mind.

This attitude, which reduces the distance between the factory floor and the managers of the Company, requires a more open management, permitting ready access between leaders and employees.

In 2006, CSN carried out two initiatives designed to involve employees in the management of the company: the Cycle of Quality and the Technology Seminar, the latter being a tool which allows employee participation and contributions through technical projects for making improvements and achieving higher growth. The two programs offer awards to the best projects presented, considering the criteria of profitability, increased productivity and cost reductions.

Training and Development

CSN provides various training and development opportunities to employees. Created in 1998, the Educate Program, involving primary, secondary and technical levels, has already provided schooling to 2,394 professional staff. Introduced at the Presidente Vargas Plant, the initiative is entirely financed by the Company, which provides schoolrooms, recruits the classes teachers and establishes agreements with education institutes.

In the same program, technical training classes are taught, sponsored in conjunction with the Pandiá Calógeras Technical School, run by the CSN Foundation, and technical courses on Electro-mechanics and Metallurgy, run every year by CSN’s employees, who invariably participate in the internal recruitment processes and assume technical roles.

Training in the workplace involving good practices, processes, knowledge of safety and the environment is given to all operating employees who join the Company, before they are authorized to carry out any operational/production activity. The content, defined in each position’s skill matrix, is observed to make sure that it is fully covered and explained, ensuring that all of our professionals have been given the background and have the necessary abilities to carry out their respective roles.

Furthermore, the Company offers partial grants for students undergoing higher education, as a way to assist and promote the personal and professional growth of its employees.

In December 2005, the Team of Value Program was launched, with the participation of 240 employees, at the Presidente Vargas Plant. The goal is to develop leadership skills at CSN. Aimed at professional staff who manage other people, from supervisors up to managers, the program will benefit all employees who occupy these roles, throughout the companies in the group. The course lasts for two years and leads to the alignment of the entire management in terms of the practices and leadership commitment with the Company’s overall strategy. In 2007, the program was extended to a further 180 employees in various units.

In addition, the Company runs a Minor Apprenticeship program, which offers 106 childrfen of employees professional courses organized in partnership with SENAI.

In 2006, CSN hired 36 trainees, 223 graduate trainees and 130 technical trainees.