Volvo 2001 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2001 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

27
instrument but rather as the basis for devel-
opment and improvement efforts by individ-
uals and groups. The response frequency is
usually in the order of 75 to 80%.
Health
The sound health of employees is of major
importance, both for the individual and the
company. Volvo works actively with health
and the work environment. A health action
plan will be developed by each company
within the Volvo Group. Each manager has
responsibility for their employees’ work-
related health.
When it comes to the working environ-
ment at the different workplaces, Volvo
always applies its own standards. The work-
ing conditions must be acceptable, regardless
of the situation at other plants in the
country.
Employee representation
Since 1971, union representatives have been
members of the Volvo Group’s Board of
Directors. The Group Council was set up at
the same time. This council is a forum in
which representatives from the company
and the trade unions discuss and provide
information regarding the most important
current issues.
It is essential for Volvo to have a good
relationship with the trade unions. This col-
laboration makes it easier to prepare for
major changes to be made at an early stage.
In those countries without union traditions,
it is nevertheless important that the employ-
ees have their representatives.
In 1996, the European Group Council,
known as Volvo Euro Dialogue, was set up to
extend international collaboration. Every
country in Europe with more than 150
Volvo employees has seats on this council.
Profit sharing
In 2000, a global profit-sharing program was
implemented for Volvo employees. Profit-
sharing is provided in the form of Volvo
shares and the aim is to:
•promote understanding of Volvo’s long-
term goals.
•encourage long-term employee commit-
ment.
•encourage employees’ interest in share-
holding.
The focus is on Volvo’s success factors:
growth, product cycle management and
operating excellence. The condition for pay-
ment is a return on shareholders’ equity that
exceeds 10%. All employees in one country
with an equal amount of working hours will
receive the same amount.
There are also bonus systems for each
business area, where the bonus is provided in
cash in relation to the business area’s results,
a maximum of 6% of the annual salary.