Volvo 1998 Annual Report Download - page 43

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The number of employees in the Volvo Group
increased by 6,920 to 79,820 people during
the year.
Detailed information on Volvo’s employees and
payroll costs, and on benefits to members of
the Board of Directors and senior executives is
provided in Note 29, on page 70 and page 105.
Number of employees
50,000
25,000
100,000
75,000
096 97 98
70,330 72,900 79,820
41
1,700 employees. With the signing, a process of integration in which all
employees participated also started. The aim was that all Samsung employees
would quickly understand and perceive the attitudes, values and cooperation
methods which Volvo represents.
At the take-over, a number of activities were initiated for all employees in the
Changwon plant. The first part consisted of information measures designed to
answer employees’ questions about the future of the Changwon unit. Also
included were training courses via internal TV, an attitude survey, a change of
work clothing, a Volvo Day, a Volvo exhibition, and changes of signs and color to
identify the plant as a Volvo facility.
The phase that is now under way in Changwon includes establishing commu-
nications methods and channels as well as an information level that is common
to the Volvo Group overall. The key elements in this connection are the com-
munication teams that were formed. A newsletter was established and the
employees have access to Volvo Global, the Group publication, as well as to
Volvo Intranet and e-mail. The long-term integration program also includes
implementing specific Volvo IT systems and training employees in their use.
Activities are being followed up continuously in order to adjust and improve
them, with the aim to integrate Volvo Construction Equipment Korea with the
rest of the Volvo Group in a natural manner and to rapidly develop into a fully
integrated unit in Volvo Construction Equipment.
Profit-related bonus and 60-year Fund
As an important component in creating solidarity, commitment and a focus on
growth in earnings, an agreement on a profit-related bonus exists between Volvo
and the union organizations for the year 1998. The profit-related bonus is based
on Volvo’s return on shareholders’ equity, which must amount to at least 10%.
A profit-related bonus based on a scale of between 10% and 18%, but not more
than SEK 350 M, will be paid on the amount exceeding the return requirement.
The collective savings program designated the 60-year Fund has been
expanded. The objective is to strengthen the financial position of the employees
when they retire. A full share in the 60-Year Fund is currently the equivalent of
SEK 210 per month deposited in an account in their name. The profit-related
bonus system and the 60-Year Fund cover employees of AB Volvo and its wholly
owned subsidiaries in Sweden.