American Electric Power 2008 Corporate Sustainability Report

26 Work Force Issues ligated to plan and prepare to operate during a pandemic. Our Avian Flu Task Force was formed in 2006 to address such a risk. As part of our stakeholder engagement this year, OSHA told us how important it is for the agency to know we are prepared. At the end of 2007, many AEP employees received a preparedness kit and information about what to do in the event of a widespread health emergency. LABOR/MANAGEMENT RELATIONS Organized Labor at AEP (nearly 30 percent of AEP’s work force is represented by labor unions) Labor Union Number of Employees International Brotherhood of Electrical Workers Utility Workers Union of America United Steelworkers of America United Mine Workers of America 3,700 1,300 500 400 of skilled workers and the remote locations of many of our facilities. We have expanded our outreach to include predominantly black colleges and are working closely with recruiting firms that specialize in attracting females and minorities. We also have developed a new “Adopt-a-School” program to encourage minority and female students at younger ages to consider careers in the power industry. AEP’s Diversity Council reflects our diverse work force and our commitment to diversity. In addition to tracking compliance with affirmative action programs, the Council’s goals are to raise awareness of AEP’s diversity, celebrate its many differences and foster a culture of inclusion. As we develop a more sustainable supply chain, AEP remains committed to having a diverse supply base. In 2007, AEP spent $885 million doing business with small or minority-owned companies; women-owned and veteranowned businesses; small disadvantaged businesses; and HUBzone and Service disabled businesses. This represents 19.5 percent of the total amount spent on material and services, excluding fuels. While the overall percentage compared with 2006 was down (from 21.2 percent), increases were gained in the following areas: women-owned small businesses (from 1.7 percent to 2.0 percent); and minorityowned businesses (from 0.4 percent to 0.6 percent). The primary challenge is developing small and diverse suppliers who can support the large capital projects that represent current growth in our business units. n Nearly one-third of AEP’s work force is represented by labor unions. Our relationship with our unionized employees is extremely important and we value a relationship built on trust, mutual respect and collaboration. In 2007, we worked with the leaders of our largest labor union, the International Brotherhood of Electrical Workers (IBEW), to develop a joint proposal to address the potential impact of climate legislation on the U.S. economy and the risk of driving jobs overseas. The AFL-CIO joined with us to advocate a climate change solution that does not result in a loss of U.S. jobs. We also collaborate with our labor partners on community projects and an annual United Way campaign. During the process of preparing this report, we invited the IBEW to be part of the review process and received meaningful feedback, including an interest in collaborating more closely on safety and health issues. We are doing this now and will do more in the future, as it makes sense. THE FUTURE LIES IN A DIVERSE WORK FORCE From our power plants and distribution centers to the executive suite, we need a diverse work force to stay competitive, to be sustainable and to succeed. We have created short- and long-range plans to attract, recruit, hire and retain a work force of highly skilled individuals with a variety of perspectives from all cultures and backgrounds. Even though close to 40 percent of our hires and internal promotions in 2007 were minorities and/or females, we continue to have difficulty achieving diversity targets for engineering and power plant jobs. These challenges are the result of keen competition for the dwindling number Useful web links: www.osha.gov • www.ibew.org www.nafe.com • www.americanheart.org http://www.osha.gov http://www.ibew.org http://www.nafe.com http://www.americanheart.org

Table of Contents Feed for the Digital Edition of American Electric Power 2008 Corporate Sustainability Report

American Electric Power 2008 Corporate Sustainability Report Contents Leadership, Management & Strategy A Message from Michael G. Morris A Message from Dennis E. Welch About This Report Environmental Performance Work Force Issues Public Policy Climate Change Energy Security, Reliability & Growth Stakeholder Engagement Glossary GRI Table of Contents

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