Treatment of employees

Because of the materiality of DEUTZ AG as the executive parent company, there is currently no overarching system that monitors the treatment of employees in the Group as a whole. Our reporting therefore focuses on the treatment of employees at DEUTZ AG. The subsidiaries are managed on an individual basis on account of different local circumstances. The local senior management teams regularly report on relevant matters to DEUTZ AG’s management.

Human capital

DEUTZ AG has formulated the following goals in this area:

  • Provide foundation training for specific specialist positions
  • Fill vacancies for specialist/management roles with qualified internal candidates
  • Develop the workforce at all levels

Due to the specific labour market situation in Extremadura, DEUTZ Spain is planning to open its own business school in 2018 so that it can fundamentally improve the skills of its employees.

Strong focus on training and development

Measures in place at DEUTZ AG include individual development plans, training in technical and IT professions, career guidance for young people, student programmes, support for part-time education (e.g. technical training and master’s degrees), inhouse training courses and training courses run in collaboration with external providers.

DEUTZ AG has long been committed to providing vocational training in professions recognised by the Chambers of Industry and Commerce. In Germany, our apprentices can train in careers ranging from electronics, mechatronics and metalworking to warehouse logistics and business administration. Last year, 29 young men and women began a vocational apprenticeship at our Company; as at the end of 2017, a total of 51 trainees were employed at our Cologne site, 19 at the DEUTZ plant in Ulm and six at the components plant in Herschbach. Our training centre in Cologne also provides vocational training, on a part-time and full-time basis, for apprentices from 21 other companies.

In 2017, a total of 206 interns were employed at DEUTZ AG, of whom 35 wrote their bachelor or master’s dissertations while at the Company. A total of 34 students spent a practical semester with us.

Our management trainees followed a special management training programme (six participants in 2017). Our professional development programme comprised 362 seminars (inhouse training and one-off external courses), attended by 1,897 participants. A further 29 specialist employees participated in skills training provided by the employers’ liability insurance association. The existing collaboration with the training provider macils. management-centrum GmbH for the implementation of specific workshops was successfully continued.

Some employees also took part in a cross-mentoring programme for female management trainees. We offer career days for young people and encourage women to enter industrial/technical occupations.

In 2017, the HR management system at DEUTZ Spain underwent thorough analysis, with 300 employees taking part in SWOT workshops in order to examine the strengths and weaknesses of the current set-up. Workspaces were assessed and an employee appraisal system was developed. An HR programme for 2017 to 2021 was defined that highlights the cause-and-effect relationships of the various approaches in HR management. These were used to create an HR dashboard featuring a hierarchical system of KPIs that gauge the efficiency of the various measures.

DEUTZ Business School in Spain

The more technology progresses towards Industry 4.0, the more highly skilled employees will have to be. Because of this and because of the specific labour market situation in Extremadura, approval was given in 2017 for a project that will culminate in the opening of the DEUTZ Business School® with its four areas of focus: strengthening dual vocational training, offering university courses in lean management, running language courses with official certification and providing ongoing training in the form of conferences and seminars.

At each site, approval processes ensure that the senior management team is closely involved in all proposed measures.

DEUTZ AG evaluates its service providers and trainers by conducting satisfaction surveys among the participants.

At DEUTZ Spain, procedures are in place for the structuring of internships (students undergoing practical training, dual vocational training and HR programme). In addition, the training process is monitored by both the company committee and the quality management system.

DEUTZ trainees and training score highly

The achievements of trainees and the DEUTZ training centre in Cologne are regularly recognised, and 2017 was no exception. Indeed last year, DEUTZ’s training was right up there with the very best in Germany, with the Association of German Chambers of Industry and Commerce (DIHK) presenting an award to a DEUTZ trainee in December 2017 in Berlin for achieving the best result in the metal technology specialist exam. And for the seventh year in a row, the DEUTZ training centre was recognised by the Chambers of Industry and Commerce for its outstanding achievements in vocational training. Further DEUTZ apprentices were awarded ‘best performer’ certificates at national, regional and federal state level.

DEUTZ AG takes on apprentices after they have completed their training and recruits graduates who worked at DEUTZ while they were studying. Technical and meister grade positions are generally filled by internal candidates. We have also improved skills training for employees, widened the reach of the ‘employees train employees’ scheme and extended the training courses offered by DEUTZ AG.

At DEUTZ AG, the ratio of trainees to total employees stood at 2.5 per cent in 2017. All apprentices and trainees who passed the final examination were given a permanent employment contract. Currently, around 5 per cent of apprentices at DEUTZ are female.

The high-potential programme at DEUTZ Spain has proven to be a success, with 75 per cent of participants having now been taken on. Its success prompted the launch of a second programme in September 2017.

Working conditions

Compliance with laws and agreements

DEUTZ acts in accordance with the collective pay agreements, tax laws, social insurance guidelines and rules on variable remuneration that are currently applicable. Our corporate culture is built on respect for different cultural values and supports equal opportunities for all employees, regardless of gender, age, ethnicity, sexual orientation or disability. Our management culture helps managers and employees to work together efficiently and from a position of trust. DEUTZ strives for fair and appropriate remuneration for all employees.

DEUTZ Spain specified comparable targets for working conditions in its HR strategy plan 2017–2021 and was the first company in Spain to introduce a compliance system with consequences under criminal law. Certification to the UNE19601 standard ensures that the statutory working conditions are also being complied with.

Employee communications and consultation

At all locations, the senior management team is closely involved in the implementation of measures. DEUTZ AG and DEUTZ Spain also follow the principle of codetermination, which gives workers a voice in company decisions. All employees in Germany are subject to the collective pay agreement of the metalworking and electrical engineering industry. Employees are represented by a works council at each site. There is also a General Works Council with responsibility for matters concerning multiple sites. An elected Senior Staff Committee represents the interests of senior managers at DEUTZ AG. Both the works council and senior managers appoint representatives to the Company’s Supervisory Board. Employee rights are safeguarded by adherence to the Company’s own corporate and management principles, collective bargaining agreements and the corresponding agreements with the employee representative bodies. The myDEUTZ staff magazine, noticeboards and ad-hoc announcements keep employees up to date with what is going on in the Company. Moreover, any employee can attend one of the local works meetings and have their voice heard if they feel this is necessary.

Appropriate measures are in place to reintegrate members of staff at DEUTZ AG who have been on long-term sick leave.

Childcare facilities

Employees of DEUTZ AG in Cologne can have children under the age of three looked after at the ‘DEUTZlinge’ day care centre, which makes it easier for them to return to their day-to-day work after parental leave. We also offer tailored or flexible working hours for employees who provide care or assistance to an elderly or disabled family member. In addition, all employees covered by collective pay agreements receive a share of the Company’s profits in accordance with a system agreed with the works council.

Promoting equality

DEUTZ Corporation closely monitors best practice in the US and builds on this to generate improvements and recommendations. The subsidiary has implemented an affirmative action plan in line with the regulations of the U.S. Equal Employment Opportunity Commission (EEOC). This sets out how discrimination on the grounds of skin colour, gender and other factors can be avoided when recruiting and promoting staff and in the general working environment.

Codetermination in action

On the basis of the applicable collective pay agreements and laws, the employee representatives at DEUTZ AG and DEUTZ Spain are closely involved in the processes and in any action taken that concerns the treatment of employees (recruitment, remuneration, reassignment, development, dismissal).

At DEUTZ Spain, there are job profiles and salary bands that comply with the collective pay agreements. A compliance system safeguards equal opportunities in the selection of personnel.

DEUTZ Corporation makes efforts to ensure that its pay is fair and appropriate. Regular audits are carried out to check that this is the case. Mechanisms have been put in place for employees to report workplace bullying and inappropriate behaviour. A handbook describes relevant countermeasures. An equal opportunities audit is carried out once a year and the results are reported to the regulatory authority (EEOC).

Key figures bear out the effectiveness of measures

Average staff turnover at DEUTZ AG is very low, at 1 per cent.

In 2017, three children were looked after at the new day care centre at the Cologne-Porz site. In an employee survey, 89 per cent were in favour of company childcare provision.

More than 70 new fathers at DEUTZ AG made use of the option to take parental leave.

Health and safety

Reducing accident frequency

A groupwide accident frequency rate of less than 10 is a target specified by DEUTZ AG in the area of health and safety. Accident frequency is defined as the number of reportable accidents in relation to hours worked.

Various measures helping to achieve this target

At DEUTZ AG, these include ergonomic improvements, flu vaccinations, medical check-ups, sports events, accident analyses, health and safety training, and campaigns run in conjunction with health insurance schemes. Managers in production, development and assembly also followed a multi-part training programme in health-oriented leadership.

At DEUTZ Spain, medical check-ups are offered and workspaces are ergonomically optimised. Noise, vibrations and levels of chemical pollutants are also measured and risk assessments carried out.

At DEUTZ Corporation, all aspects of workplace safety management (accident analysis, prevention, etc.) have been outsourced to an external service provider.

At all locations, the senior management team is closely involved in the implementation of health and safety measures through management reviews. Stakeholders such as external service providers and health insurance schemes are also involved.

Alignment with overarching standards

In order to assess safety and the protection of its employees’ health, DEUTZ AG and DEUTZ Spain have put in place a system for checking workspaces. IMS (Integrated Management System) has been introduced in Germany and OHSAS in Spain. The primary areas of focus are health, safety and the environment. The frequency with which these internal inspections take place depends on the extent and type of the risk presented by the machinery or workspace. Teams made up of experts from various disciplines carry out these workplace safety inspections in areas such as assembly and production. Any issues that are identified are documented in action plans that specify a timeframe for remedial measures to be taken.

To minimise safety risks, DEUTZ AG has introduced an internal approval process for hazardous substances and for the procurement of plant, machinery and equipment. The service providers that we engage are given detailed information about site-specific risks.

The accident frequency rate at the DEUTZ Group was 13.9 1) in the year under review. Despite the improvement that can be seen in all plants, DEUTZ AG fell short of its target of an accident frequency rate of below 10 (2017: 15.1; 2016: 22.2) 2).

1) Plants in the DEUTZ Group, excluding joint ventures.
2) Prior-year figures not checked by the external auditor.