Performance management

Performance management at Enbridge is central to our ability to meet our business objectives and to create and sustain a high-performance workforce. Leaders support employees in effectively aligning their contributions with the strategic goals of Enbridge’s business. Leaders provide feedback to employees to guide their performance and development in each performance year. Effective performance management ensures strong performance, the ability to recognize and reward performance and the development of opportunities for advancement.

In 2006 and 2007, the effective management of performance is being further reinforced by an enterprise-wide focus on effective performance management practices including employee recognition, identification of high potential and succession candidates and enhanced employee development planning.

Total compensation

In 2006, the spotlight on total compensation continued as Enbridge strives to retain employees and expand its workforce in support of its growth strategy. All of this was in the context of a strong employment market that has and will continue to create heightened levels of sensitivity on total compensation competitiveness for all stakeholders.

Enbridge’s total compensation programs consist of a full suite of programs including annual, short-term, mid-term and long-term plans. On the benefits side, we offer a comprehensive selection of life, health and dental coverage along with defined-benefit and defined-contribution pension plan options. These programs are reviewed on a regular basis and adjusted where required to continue to ensure they are competitive in the markets we operate and meet the needs of our employees.

In 2006, we enhanced our short-term incentive plan enterprise wide by aligning all employees to the achievement of goals at the company-wide, business-unit (where appropriate) and individual level. Further, line of sight at the business unit level was significantly reinforced with the addition of non-financial performance measures aligned uniquely to each business unit’s goals and objectives. Enbridge also implemented a restricted stock unit plan for mid-management employees enterprise wide in 2006. It is a cash-based plan with a three-year term that is intended to augment our retention capabilities. Grants are awarded on the basis of performance, critical skills retention and market competitiveness.

Our efforts to enhance employee understanding of total compensation programs continue. We published a total compensation booklet for all employees and executed a series of briefing sessions with leaders on this topic. Results of our annual employee survey indicate this is an area requiring ongoing attention.

Our total compensation programs continue to evolve as our business needs change and the external environment changes. Through all of this, our capacity for change and responsiveness has increased dramatically, which will serve us, in whatever direction our programs take, well into the future.

Positive work environment - enbridge’s commitment to a diverse and inclusive work environment

Enbridge has a firm commitment to creating a healthy and positive work environment. Company policies affirm our strong commitment to maintaining the dignity and respect of all employees. We also subscribe to the principles of a fair and equitable work environment.

Our work environment promotes a diversity of roles and enriched job experience through project work and participation on cross-functional teams. We also encourage our employees to take an active role in their communities through a variety of volunteer committees and United Way activities.

Each of our businesses recognizes the special achievements of our employees on an ongoing basis. These activities include service awards, monetary gifts, recognition in our internal communications and opportunities for challenging assignments.

Enbridge’s diverse workforce is represented by multiple generations and members of minority groups. With increasing frequency, women are taking leadership roles. In 2006, Enbridge further developed and advanced the use of alternative work arrangements in our workplaces.

Employee communications

As the pace of business and change accelerate in our industry, we are seeking to enhance our internal communications and employee relations to ensure employees are informed and engaged in the evolution of our business at Enbridge. Effective communication with our employees is of particular importance to support business growth as Enbridge continues to evolve.

We seek to foster an environment committed to open and frank communication with a dedicated channel for upward feedback and input by employees. We actively engage our employees in exchange of information and communications through multiple channels.

We hold annual employee meetings across the organization within each local business unit to ensure employees receive and exchange information with regard to the Company’s plans for strategic growth. These forums provide an opportunity for employees to meet with our Chief Executive Officer, local senior leadership and guests to discuss the challenges and opportunities for Enbridge, and engage in a discussion about the issues that matter to them.

In the Corporate office in Calgary, business leaders meet with the CEO and Corporate Leadership Team in regular “Enbridge Business Meetings”, providing a forum for open and frank discussion of current business matters directly with Enbridge’s most senior leadership, reinforcing employee engagement and alignment amongst business leaders.

Enbridge Gas Distribution regularly conducts leadership forums on topics of strategic importance to provide updates to the management group. These are facilitated by the Enbridge Gas Distribution Executive Management Team and serve to facilitate alignment and communications amongst the leadership population.

In 2006, annual employee meetings were held in Toronto, Edmonton, Calgary and Houston, with active question-and-answer periods.