Our approach
„Efficiency and good working conditions are not mutually exclusive.“
Our employees are an important group of stakeholders as well as being key players in our business operations. That’s why we regard employee relations that are characterized by fairness and trust as more than just an ethical and legal obligation. Without them, we would be unable to successfully manage our business activities. Effective human resources policies contribute to building such employee relations by placing emphasis not only on the rights and needs of the employees, but also on their talents and qualifications. They lay the groundwork for the efficient deployment of personnel while ensuring that our employees give their best performance – with a high level of motivation and a sense of satisfaction with their jobs. That’s why the fundamental principles of our human resources policies include appropriate remuneration and high standards of occupational health and safety as well as flexible, family-friendly models for working hours and extensive training and qualification offerings. As part of our diversity management efforts we are working to make diversity a value factor in our human resources processes and in our corporate culture.
Safeguarding employee rights. In our Principles of Social Responsibility we declare our commitment to strict observance of the rights of employees, in accordance with the principles of the UN Global Compact. We place great emphasis on intensive cooperation with employee representatives from labor councils, labor unions, and national and international bodies such as the World Employee Committee (WEC) and the European Works Council. Daimler issues regular reports to the WEC regarding violations of our principles of social responsibility. In 2008 we revised the procedure for dealing with complaints, which now also applies to suppliers, from whom we likewise require compliance with fundamental social standards.
Daimler recognizes the right of workers to organize themselves in trade unions in accordance with the labor laws of each country it operates in. The Group also ensures that freedom of association is guaranteed at its facilities, even in countries that do not explicitly grant such freedom. This is laid out in our Principles of Social Responsibility, which include all ten principles of the UN Global Compact. In the area of human rights, we pay particular attention to employee rights such as freedom of association, the right to engage in wage negotiations, the right to equal opportunity, and the right to receive equal pay for equal work. We oppose forced labor and we support measures to eliminate the exploitation of child labor.
Daimler maintains close cooperation with employee representatives in works councils and trade unions as a basic business principle. Major dialogue partners at the international level are the World Employee Committee (WEC), which was formed in 2002, and the European Works Council, which dates back to 1996. At the company level, employee interests are represented by ten Supervisory Board members in accordance with German law. Since 2009 a representative of the General Works Council has been providing support for the HR CSR Committee, which deals explicitly with sustainability issues across all business units.
In Germany, where 90 percent of the Group’s employees are subject to collective bargaining agreements, the Works Council Constitution Act ensures that works councils exercise extensive co-determination rights on behalf of the workforce, for example regarding company wage scales and issues involving company regulations. Although at some Group companies in Germany there is no requirement to adhere to collective bargaining agreements, the employees at these companies have elected works councils that act in the interests of the employees, in keeping with German co-determination law.
The company is required to inform the Works Council of all significant operational changes. In accordance with specific thresholds defined by the Works Council Constitution Act, the company must negotiate an agreement with the Works Council that addresses the effects of operational changes. Daimler also promptly informs its employees about significant operational changes by means of internal communication media. In addition, the various employee representative bodies at the Group and company levels (Group Joint Management-Employee Economic Committee, WEC) are also informed about the economic situation and important changes within the Group and at the Group companies.
Daimler also shares ideas and views with its stakeholders outside the legally required co-determination structures in order to arrive cooperatively at effective solutions. For example, in 2011 – before the expiration of the existing contract – we arrived at an agreement to exclude business-related layoffs until the end of 2016. That was a major step toward safeguarding our employees’ jobs over the long term. In situations where the implementation of operational changes could have a detrimental effect on employees, we consistently seek to reach appropriate agreements with the responsible employee representative bodies in order to reconcile interests and mitigate any negative effects through the implementation of a social plan.
Daimler reports regularly to the World Employee Committee (WEC) on any violations of our Principles of Social Responsibility. In 2008, we restructured the procedure for dealing with complaints regarding violations of these principles, and we also redefined the areas of responsibility in cooperation with the Procurement department, which we inform of any such violations on the part of our business partners.
Implementation of the UN Global Compact principles
Employee rights as a component of human rights
Employee rights in supplier management
Our strategy. Daimler pursues a global human resources strategy that is in line with its corporate goals and with the principle of sustainability. The strategy is based on five pillars:
- Profitability
- A competitive workforce
- Future-oriented managerial expertise
- High attractiveness as an employer
- Professional organization
Our strategy also includes sustainability targets that are specific to the business units – such as those for promoting equality of opportunity and addressing demographic changes. Implementation involves cascading the strategic targets as part of the annual goal agreement process with our managers.
Green HR strategy. In the context of our green HR strategy we are preparing in particular for the challenges that are emerging for Human Resources as a result of the trend toward new, green drive technologies. The aim here is to ensure that the right employees continue to be available at the right time and in the right locations. In order to do this, we have identified the necessary areas of activity and are now developing and implementing specific measures. These are combined in five work packages:
- HR requirements analysis and planning: anticipation of future manpower needs, quantitative and qualitative, on the basis of the divisions’ current strategic planning – e.g. by means of HR resource management
- Co-financing of the ELAB study concerning the effects of drive system electrification on employment
- Training: e.g. integration of “green” expertise into the existing job profiles
- Recruiting and employer branding: e.g. even greater presence at job fairs for high school and college graduates and in the area of social media (such as Facebook and Twitter)
- Further training: qualification of about 44,000 employees throughout the value chain in the past two years
- Human resources development, e.g. via the Daimler Academic Programs
ELAB – Electromobility and employment
We have launched the ELAB research project in cooperation with the Group Works Council. ELAB examines the effects of powertrain electrification on the employment situation at a theoretical engine production facility and the impact on the local environment. In particular, the project investigates the effects on employment, job qualification profiles, working conditions, and added value. The project, which is sponsored and financed by Daimler AG, the IG Metall Baden-Württemberg trade union, and the Hans Böckler Foundation, will run until mid-2012. The Stuttgart-based Fraunhofer Institute for Industrial Engineering, the IMU Institute, and the Institute of Vehicle Concepts at the German Aerospace Center (DLR) have been commissioned to carry out the research. We expect the results of this research project to provide us with important information about future challenges that will affect our human resources and labor policies.
www.elab.iao.fraunhofer.de
Our HR organization. The Corporate Human Resources department is responsible for all human resources functions and processes worldwide. The Board of Management member responsible for Human Resources, who is also the Group’s Director of Labor Relations, oversees the department. This member is also responsible for ensuring adherence to the international labor standards of the UN Global Compact and to labor standards derived from it – for example, those of the ILO. The Human Resources department comprises three areas of responsibility:
- Corporate functions that are responsible for human resources strategy, policy, and guidelines throughout the Group,
- Divisional human resources functions that are responsible for personnel work in the divisions and business locations as well as for the implementation of human resources strategy, and
- Service units that provide regionally based human resources services.
Key figures for measuring success and for transparency. The Global Human Resources Scorecard is a key controlling tool used by Daimler. The scorecard, in turn, is aligned with the Group’s goal achievement system. The scorecard’s success factors and 21 key performance indicators (KPIs) make it possible to compile key global HR figures in a targeted manner, thereby enabling us to evaluate the success of the human resources processes and measures at the divisions both in general terms and with regard to sustainability. This creates transparency, and the effect is enhanced by a system for sharing best practices that generates momentum for continual improvement. The KPIs include the Employee Commitment Index and key figures regarding qualification measures, the effects of demographic change (aging effects), and the number of women in management positions.
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