Volvo 2015 Annual Report Download - page 75

LABOR RELATIONS
Labor relations topics are included in the Volvo Group Code
of Conduct covering all employees and consultants.
There are several dialogue platforms for our employees:
• AB Volvo Board: there are three ordinary members of
employee representatives on the AB Volvo Board of Directors and
two deputies appointed by employee organizations.
• Volvo European Works Council (EWC) meets once a year focusing
on European issues and sharing best practices. In 2015 there were
13 formal information and consultation meetings with the EWC.
• Volvo Global Works Council (GWC) includes union representa-
tives from the existing EWC and from wholly-owned Volvo Group
companies in countries outside Europe with more than 500 reg-
ular employees. In 2015, over 50 representatives represented
25 different countries.
• Volvo Global Dialogue (VGD) gives employee representatives
from the GWC a yearly opportunity to meet with senior Group
Management. The 2015 VGD gathered 45 representatives from
20 different countries on the theme “2015 – The Year of Trans-
formation”.
Supporting freedom of association
The Volvo Group respects the right of all employees to join an
association to represent their interests as employees, to organize
and to bargain collectively or individually. An employee’s right to
refrain from joining a union is equally respected.
The Group now reports on collective bargaining agreements in
24 countries, up from 16 in 2014. The latest study covered nearly
95% of all regular employees. Overall, 71% of regular employees
in these countries were covered by collective bargaining agree-
ments, and we estimate that more than 43% of regular employ-
ees were members of an independent trade union.
During 2015, less than approximately 0.25% of available work-
ing days were lost through walkouts or strikes within the Volvo
Group. These strikes were mainly related to our Brazil salary
negotiations due to the difficult economical environment and also
to some extent to our French social plan negotiations. All issues
were resolved through close communication and partnership with
our employee representatives.
Collaborating to find
solutions
In response to economic condi-
tions and sales volumes, we made
3,400 redundancies among regu-
lar Volvo Group employees globally
during 2015. Comp ulsory redun-
dancies accounted for less than
4% of the total regular headcount.
Employees’ representatives and
relevant government authorities are always notified about major
changes in our organization in accordance with our Code of Con-
duct and legal requirements. Labor organizations are informed via
formal forums and are also represented in board meetings.
The Volvo Group enters into consultation and negotiations with
trade unions and/or works councils about changes that affect
their members. During 2015, 105 consultations were held with
trade unions and 126 consultations with works councils over
organizational changes (e.g. restructuring, outsourcing, layoffs).
In the spirit of the Volvo Group culture and in accordance with
our Code of Conduct, we work to find reasonable solutions for
employees who are laid off. This includes internal mobility forums,
which support the establishment of new enterprises, and out-
placement support.
In addition the Volvo Group often works closely together with
local agencies or governmental offices to support affected
employees.
A GLOBAL GROUP BUSINESS MODEL RESPONSIBLE BUSINESS BEHAVIOR
Right to life, liberty, security and health
Mitigating the risk of accidents or harm to all employees within
our facilities is an important part of our approach to health, safety
and wellbeing, see page 74. We encourage our business partners to
provide a safe and healthy work environment for their employees.
To minimize risks of traffic accidents, the Volvo Group has focused
on safety and quality since 1927, read more on page 27 and 61. The
Volvo Group works hard to reduce emissions from our production
facilities to minimize harm to people, read more on page 34.
Wherever we do business, we adhere to local laws and regula-
tions as well as international laws and regulations, including
boycotts and sanctions agreed by inter-governmental decision-
making bodies. We manufacture commercial products used to
build and maintain communities around the world, and such prod-
ucts are sold openly and without restrictions. Our products are
resold on the second-hand market and may be used for purposes
we did not intend, including causing harm to people. Any misuse
of our products for destructive purposes, is regrettable, but such
practices are exceptional and beyond our direct control. For our
sales of military products, on top of following all legal and export
control regulations, we have a directive for military sales to certain
destinations, including human rights considerations.
LESS THAN
0.25%
OF WORKING
DAYS L O S T
73