Mercedes 2006 Annual Report Download - page 118

102
Human Resources
Global Human Resources Strategy safeguards competitiveness | New compensation model (ERA)
introduced in Germany on January 1, 2007 | New management model implemented at the human
resources level | Approximately 9,400 traineeships worldwide
102
Improved productivity and headcount reductions. The Daimler-
Chrysler Group had 360,385 employees worldwide on December
31, 2006 (2005: 382,724), and achieved significant productivity
improvements in all divisions during the year 2006. 166,617
persons were employed in Germany (2005: 182,060) and 94,792
in the United States (2005: 97,480). The number of employees
decreased compared to the figure for 2005, primarily due to the
implementation of the CORE program at the Mercedes Car Group
and the new management model in the administrative areas of the
headquarters and operational units, as well as the sale of the
off-highway business. Within the context of implementing the new
management model, some functions that had previously been
performed at the Group level were assigned to the divisions.
Therefore, the approximately 2,000 employees of the former
Corporate Research department are now shown at the Mercedes
Car Group, since Corporate Research was merged with the
development departments of the Mercedes Car Group. These
changes have led to opposing employment effects in the
divisions, making it difficult to directly compare their figures
with the prior year.
Global Human Resources Strategy safeguards competitive-
ness. The targets for our human resources operations are clearly
defined in the DaimlerChrysler target system (see page 36):
We aim to hire, retain and promote highly motivated and high-
performing employees. In order to attain this goal and contribute to
the Group’s long-term success, we pursue a Global Human Re-
sources Strategy that is based on five pillars: profitability, a compet-
itive workforce, future-oriented leadership, high attractiveness
as an employer and professional organization. In 2006, our human
relations work focused on three key challenges: improving our
competitiveness, especially in the areas of labor costs and em-
ployee performance; implementing the new management model;
and systematically integrating the organization of decentralized
human resources departments, systems and processes.
Putting shared corporate values into practice. Passion, Respect,
Integrity and Discipline provide orientation and form the basis
for every employee’s actions in line with the culture of excellence
at DaimlerChrysler. It is therefore vitally important that these
basic values are put into practice without any reservations and
are firmly established in our human resources procedures.
Due to their position as role models, managers bear a special
responsibility in this regard.
Transformation of the compensation system. The uniform
collective framework agreement for hourly and salaried employees
in Germany (ERA) is being introduced with effect as of January 1,
2007. To this end, the work activities of approximately 125,000
employees have been reevaluated in cooperation with human
resources units, managers and works councils. Further details of
the agreement, such as a new system for measuring perfor-
mance, will be worked out in the course of 2007. In the “Safe-
guarding the Future 2012” agreement concluded in 2004, it was
agreed that after the introduction of ERA at DaimlerChrysler, the
wage increase of 2.79% stipulated in the collective bargaining
agreement would not be implemented in full. It was also agreed that
the existing workforce at the Group’s German locations would
receive wage and salary guarantees and company compensation
components if necessary. For new employees, ERA applies
in full as specified in the collective wage bargaining agreement
and in the terms of application for the various plants. Another
consequence of the “Safeguarding the Future 2012” agreement
is that the wages of DaimlerChrysler employees covered by the
collective wage bargaining agreement were reduced by 2.79% in
2006. For senior managers in Germany, variable compensation
for 2006 was reduced by 10% in addition to the reduction of their
regular monthly salaries.
360,385
99,343
80,735
83,237
46,952
10,718
39,400
% change
- 6
- 5
- 3
- 1
- 4
- 4
- 23
06/05
382,724
104,345
83,130
84,254
48,773
11,129
51,093
Employees (December 31)
2005
DaimlerChrysler Group
Mercedes Car Group
Chrysler Group
Truck Group
Sales Organization
Automotive Businesses
Financial Services
Van, Bus, Other
2006