PEOPLE

Employee Relations

Labor Standards

We strive to be an exemplary employer. We believe that people perform their best when they are treated with a high level of personal dignity and respect. We also believe that we offer competitive wages and salaries to all employees relative to the local labor market. We operate in full compliance with all material applicable labor, health and safety regulations. We also uphold all International Labour Organization (ILO) labor standards.

Our intent is always to respect and follow customary practices and local market regulations as they relate to the rights of workers to decide whether to enter into collective bargaining representation. We also believe that open, direct and constructive dialogue between workers and management is the most effective way to reach mutually agreeable solutions to workplace issues. Accordingly, we encourage direct contact between our employees and management.

We have collective bargaining agreements with 37.4 percent of our employees, the majority of whom are employed in our Mexican, European and Asian manufacturing operations. Most of our U.S. employees are not party to any collective bargaining agreement. There have been no work stoppages in any facility now owned by Mohawk Industries in at least five years. We believe that our relations with our employees are good.

In the United States, the federal WARN Act establishes that companies must notify employees 60 days prior to the closing of a facility or a significant reduction in a facility’s workforce. In Mexico, the notice periods for operational changes are based on agreements with the union representatives at the facility. In Europe, the notice periods for operational changes are based on collective bargaining agreements and/or legislation. Once the Company ratifies this agreement, its content is binding for all manufacturing employees, regardless of whether they individually opt for membership in the union or not. In Malaysia, according to the Employment Act of 1955, companies operating there must submit any operational changes, including shutdown, retrenchment or redundancy, to the Labor Department no later than 30 days prior to the action. In the event an agreement has different requirements, we will abide by those requirements.

Human Rights

We support the premise that all people deserve a life with freedom and dignity, which is conducive to their physical, mental, social and spiritual welfare. We recognize that challenges to these principles are present in certain regions of the world where human rights have not progressed to the same standards as those we support. When our business extends into these regions, we are particularly sensitive to the potential for transgressions and are committed to combating them.

We prohibit the use of all forms of child labor or forced labor, including indentured labor, bond labor, military labor or slave labor, at all of our locations, domestic and international. We have policies in place throughout our global operations to ensure that these types of labor are not utilized. We also have procedures in place for our people to report complaints and grievances, should there be a question about labor practices.

Mohawk adheres to minimum age provisions of applicable laws and regulations in the areas where we do business and requires legal documentation for age verification. Our prohibition of child labor is consistent with ILO standards. We have found no significant risk for incidents of child labor or risk of forced or compulsory labor in our operations around the world.