Mercedes 2006 Annual Report Download - page 119

Sustainability | Human Resources |103
Headcount reductions at the Mercedes Car Group. The CORE
program approved by the Board of Management at the end of
September 2005 called for a reduction of 8,500 jobs within 12
months at the German locations of the Mercedes Car Group.
The goal was to reach this figure through voluntary severance
agreements. The basic terms and conditions of severance were
defined in a social program and the affected employees were
actively supported in their search for new jobs both inside and
outside the Group. By September 30, 2006, approximately 9,300
employees had signed voluntary severance agreements or had
already left the Mercedes Car Group. During the fourth quarter of
2006, an additional 400 employees accepted the voluntary
severance offer.
Start of implementation of new management model’s human
resources provisions. In January 2006, the Group announced
that it would be using a new management model to improve
competitiveness and promote its profitable growth by eliminating
duplication, consolidating administrative functions and streamlining
processes (see page 35). As a result of these measures, the
number of administrative employees worldwide will be reduced
by approximately 6,000 (about 20%) by the end of 2008. The
target in Germany will be reached through voluntary severance
agreements and by means of the specific terms of the “Safe-
guarding the Future 2012” agreement. By the end of January 2007,
approximately 2,000 employees worldwide had either signed
voluntary severance agreements or had already left the Group.
New healthcare regulations at the Chrysler Group. In 2006,
we changed the healthcare regulations covering the non-union
salaried employees and retired employees of the Chrysler Group.
Since January 1, 2007, these employees have been paying
contributions to their healthcare insurance in relation to their
rank and salary level. In the future, retirees not covered by
Medicare will have to pay a portion of the cost increases, which will
be calculated according to their income at the start of retirement.
On the other hand, retirees who are covered by Medicare will in the
future receive supplementary payments into a healthcare
retirement account instead of receiving additional benefits. In the
coming year, we will continue our talks with the union United
Automobile, Aerospace and Agricultural Implement Workers of
America (UAW) on the issue of how to reduce the costs of
health care.
Workforce diversity contributes to corporate success.
Professional diversity management promotes the purposeful
and complementary utilization of our employees’ different areas
of expertise, experience, perspectives and cultures. Through this
process, we can react more effectively to the broad spectrum of
our customers’ needs and can thus improve our competitiveness.
In Germany, the diversity of our workforce is strengthened
by numerous activities, including diversity workshops for all
management staff, target ranges for the percentage of women
in management positions, and the expansion of nurseries and
daycare centers for the children of our employees. In addition,
the Chrysler Group contributes its many years of experience to our
Group-wide diversity management by providing special support
to minority-group dealers and suppliers.
Training programs ensure long-term competitiveness.
In an effort to open up new perspectives for young people and
to safeguard our long-term competitiveness, we employed 7,896
trainees in Germany and 9,352 worldwide (2005: 9,880).
In addition, following consultation with the Corporate Works
Council, in 2006 we further increased by 5% the number of
traineeships in our production plants and at the DaimlerChrysler
headquarters in Germany and concluded approximately
2,600 new trainee contracts.
“CAReer – the Talent Program”: launch of a new Group-wide
program for young employees. The CAReer program consolidates
more than 30 previous entry-level programs aimed at strategically
recruiting young high-potential employees all over the world. This
allows us to foster university graduates with above-average
grades, initial practical experience and impressive personal skills,
with less administrative complexity than before. We can also
standardize our selection processes and application management
procedures as well as providing trainees with detailed individual
preparation for the positions they will occupy.
A “thank you” to our workforce. The Board of Management
thanks all of the employees at DaimlerChrysler for their initiative,
commitment and achievements in the year 2006. We are convinced
that our employees’ ability, enthusiasm and energy will secure a
successful future for the Group. We also extend our thanks to
the employee representatives for their constructive cooperation
in 2006.
Our employees are the key to DaimlerChrysler’s successful
future. Because the motivation, expertise and efficiency of our
workforce make a crucial contribution to the DaimlerChrysler
Group’s long-term success.