Treatment of employees

A pioneering spirit and innovation are key to the DEUTZ mission. To implement them, the Company needs highly qualified and motivated employees who will show initiative and ingenuity in pursuit of our objectives.

Because of the materiality of DEUTZ AG as the executive parent company, there is currently no overarching system that monitors the treatment of employees in the Group as a whole. Our reporting therefore focuses on the treatment of employees at DEUTZ AG. The subsidiaries are managed on an individual basis on account of different local circumstances. The local senior management teams regularly report on relevant matters to DEUTZ AG’s management. Certain activities at DEUTZ Spain are also reported on in this section as examples of the DEUTZ Group’s engagement at regional level.

Employee development and training

DEUTZ AG has formulated the following goals in this area:

  • Provide foundation training for specific specialist positions
  • Fill vacancies for specialist/management roles with qualified internal candidates
  • Nurture the creativity and commitment of employees at all levels and help them to develop their skills

The number of apprentices to be employed and their distribution across the various occupations is agreed every year with the Board of Management and a works council commission made up of equal numbers of employer representatives and workforce representatives. Training management regularly reports to HR about the status of recruitment.

We systematically pursue our objective of filling specialist and management positions from within the Company by advertising all open vacancies internally. No annual target has been set in this regard.

We promote employee training and skills in particular by offering internal and external continuing professional development (CPD). This is based on the requirements of the departments, which are ascertained by conducting an annual survey of the line managers. No target figure has been set, for example for the number of CPD events or the amount of budget used.

Ideas management is an established method for promoting and rewarding our employees’ creativity. A company-wide agreement is in place that outlines the procedure and the processes.

Training and development a high priority

Measures in place at DEUTZ AG include succession planning processes, individual development plans, training in technical and IT professions, career guidance for young people, student programmes, support for part-time education (e.g. master’s degrees), inhouse training courses and training courses run in collaboration with external providers. These measures are designed to continually develop our existing employees in the various functions and to attract suitably qualified candidates to join them in the Company.

DEUTZ AG has long been committed to providing vocational training. In Germany, our apprentices can train in careers ranging from electronics, mechatronics and metal engineering to warehouse logistics and business administration. Our training centre in Cologne also provides vocational training for apprentices from other companies. The achievements of trainees and the DEUTZ training centre in Cologne are regularly recognised, and 2018 was no exception. For the eighth year in a row, the DEUTZ training centre was recognised by the Chambers of Industry and Commerce for its outstanding achievements in vocational training. DEUTZ AG apprentices were awarded ‘best performer’ certificates at regional and federal state level.

DEUTZ AG takes on apprentices after they have completed their training and recruits graduates who worked at the Company while they were studying. Technical and meister grade positions are generally filled by internal candidates. We have also improved skills training for employees and expanded the training programmes.

Our overall ratio of trainees to other employees at DEUTZ AG was 3.2 per cent in 2018 (2017: 2.5 per cent). We gave a permanent employment contract to all apprentices and trainees who passed their final examination. Currently, around 8 per cent of apprentices at DEUTZ are female.

Our Company also employed interns and students in the year under review. Some of the students wrote their bachelor or master’s dissertations with us and some spent a semester with us to gain industry experience.

DEUTZ Spain nurtures talent

In the year under review, DEUTZ Spain launched its second training programme for high-potential individuals, in which the four best engineering graduates from the Universidad de Extremadura and the two best graduates from the dual vocational training scheme rotate between three areas of the company (production, logistics and design). After each rotation, a project is presented and evaluated. The most promising participants in the programme will be employed on a permanent basis.

The opening of the DEUTZ Business School in Zafra moved a step closer last year, with construction work commencing after the capital expenditure was authorised. Talks were also held with potential partners. Teaching is scheduled to begin at the school in April 2019.

Professional training and development

We run a special leadership programme for our management trainees that is tailored to their individual strengths. In 2018, a new cohort of high-potential employees were given the opportunity to prepare for their future roles in the Company. Their development targets and action plans were agreed on an individual basis.

We ran internal training courses and external events as part of our professional development programme, and specialist employees participated in skills training provided by the employers’ liability insurance association. We continued to work successfully with the training provider GmbH on the implementation of specific workshops.

In 2018, as part of the DEUTZ quality offensive, twelve DEUTZ AG employees trained to become Lean Six Sigma Black Belts in accordance with the standards set forth by the American Society for Quality (ASQ). The 16-day training programme culminated in the completion of a Lean Six Sigma project.

Successful ideas management

DEUTZ AG uses a bonus-driven ideas management scheme to harness the creativity of its employees.

Last year, the ideas that they submitted (an average of 23.3 per 100 employees) generated a benefit of €162 thousand. 

This creativity pays off for employees and the Company in equal measure.

Commitment to the local workforce

As well as training and developing its own employees, DEUTZ AG also provides general support to workers in the regions where it is based. The following initiatives complement the activities undertaken by the Company that are reported on in the ‘Social responsibility’ section.

Helping young people and the unemployed into work

For more than 27 years, we have been working with IN VIA – an association under the auspices of the German Caritas organisation – and the German Federal Employment Agency to provide career preparation courses for young people with learning and social difficulties. In 2017/18, around 30 participants underwent basic metalwork/warehouse training over a ten-month period at the DEUTZ training centre. In the year under review, 82 per cent of those who completed this training secured a place on a vocational apprenticeship scheme or were hired, which is a relatively high proportion.

Successful integration of disabled workers

DEUTZ has also successfully worked with GWK, a not-for-profit organisation based in Cologne, for more than 40 years. We have worked with GWK for many years on finding new areas of the business where the workshops could add significant value for DEUTZ AG and vice versa.

Today, some 200 people with disabilities work at the various GWK workshops and service centres where they provide services for DEUTZ AG. And we would very much like to expand this collaboration in the future.

Industrial placement in Spain

As part of its Experiencing Europe programme, DEUTZ Spain gave young people from Germany the opportunity to complete an industrial placement in Spain. As well as finding out what it is like to live and work in another country, the participants were able to experience the common values of European integration at first hand.

Working conditions

Compliance with laws and agreements

DEUTZ acts in accordance with the collective pay agreements, tax laws, social insurance guidelines and rules on variable remuneration that are currently applicable. Our corporate culture is built on respect for different cultural values and supports equal opportunities for all employees, regardless of gender, age, ethnicity, sexual orientation or disability. Our management culture helps managers and employees to work together efficiently and from a position of trust. DEUTZ strives for fair and appropriate remuneration for all employees.

DEUTZ champions diversity

In 2018, we adopted a diversity plan for the Supervisory Board and Board of Management of DEUTZ AG. The objective is to consciously harness diversity as a means of driving the Company forward. After all, taking account of different perspectives, skills, backgrounds and experience will be key to maintaining our competitiveness and success over the long term. Diversity within the Board of Management will, in particular, help us to better understand new business models and the wide-ranging expectations of our customers from around the world.

DEUTZ Spain commits to gender equality

DEUTZ Spain is the first company in the region to sign an agreement with its works council guaranteeing equality for women and men.

Employee communications and consultation

At all locations, the senior management team is closely involved in the implementation of measures. DEUTZ AG also follows the principle of codetermination, which gives workers a voice in company decisions. All pay-scale employees in Germany are subject to the collective pay agreement of the metalworking and electrical engineering industry. Employees are represented by a works council at each site. There is also a General Works Council with responsibility for matters concerning multiple sites. An elected Senior Staff Committee represents the interests of senior managers at DEUTZ AG. Both the works council and senior managers appoint representatives to the Company’s Supervisory Board. Employee rights are safeguarded by adherence to the Company’s own corporate and management principles, collective bargaining agreements and the corresponding agreements with the employee representative bodies.

The myDEUTZ staff magazine, the intranet, noticeboards and ad-hoc announcements keep employees up to date with what is going on in the Company. Moreover, any employee can attend one of the local works meetings and have their voice heard if they feel this is necessary.

Childcare facilities

Employees of DEUTZ AG in Cologne can have children under the age of three looked after at the ‘DEUTZ-linge’ day care centre, which makes it easier for them to return to their day-to-day work after parental leave. The centre, which opened in autumn 2017, is proving very popular with employees. More than 85 new fathers at DEUTZ AG made use of the option to take parental leave. In 2018, two members of staff looked after a total of seven children at the day care centre in Cologne-Porz.

Sharing profits with employees

One of the ways that DEUTZ AG motivates its employees is by letting them share in its success. The Board of Management and General Works Council have agreed to annually reward all employees covered by collective pay agreements with a share of the Company’s profits. DEUTZ AG also hosted celebrations for staff of DEUTZ AG and Torqeedo at the sites in Cologne and Ulm. All employees and their families were invited to the events, which proved extremely popular and further strengthened the feeling of togetherness within the Company.

Codetermination in action

On the basis of the applicable collective pay agreements and laws, the employee representatives at DEUTZ AG are closely involved in the processes and in any action taken that concerns the treatment of employees (recruitment, remuneration, reassignment, development, dismissal). The objective is to agree mutually acceptable rules and arrangements for the matters at hand.

Key figures bear out the effectiveness of measures

Average staff turnover 1) at DEUTZ AG is very low at 0.79 per cent.

Health and safety

Accident frequency

A groupwide accident frequency rate of less than 10 is a target that we have specified in the area of health and safety. Accident frequency is defined as the number of reportable accidents 2) per million hours worked and is known internationally as the recordable incident rate (RIR). This key indicator takes into account actual hours worked, so it includes overtime and weekend work.

A range of measures to achieve targets

Ergonomics and work safety training, accident analyses and workplace audits were carried out across DEUTZ AG’s Cologne-Porz site to promote the health and safety of our employees. New software for optimising movement patterns in assembly areas was introduced to provide insights into the health implications of specific movement patterns.

We put a range of measures in place to safeguard the health of our employees, including flu vaccinations, medical check-ups, sports events and campaigns run in conjunction with health insurance schemes. We also offered managers in assembly and production the opportunity to follow a multi-part training programme in health-oriented leadership.

Appropriate measures are in place to reintegrate members of staff at DEUTZ AG who have been on long-term sick leave. These measures are tailored to the individual circumstances of the employee in question.

At all locations, the senior management team is closely involved in the implementation of health-related measures through management reviews. External service providers and health insurance schemes are also involved.

Alignment with overarching standards

In order to assess safety and the protection of its employees’ health, DEUTZ AG and DEUTZ Spain have put in place a system for checking workspaces. IMS (Integrated Management System) has been introduced in Germany and OHSAS in Spain. The primary areas of focus are health, safety and the environment. The frequency with which these internal inspections take place depends on the extent and type of the risk presented by the machinery or workspace. Teams made up of experts from various disciplines carry out these workplace safety inspections in areas such as assembly and production. Any issues that are identified are documented in action plans that specify a timeframe for remedial measures to be taken.

Accident frequency

The DEUTZ Group’s RIR for the year under review was 15.0, which is roughly on a par with the prior year (2017: RIR of 13.1). The Group’s target accident frequency rate of less than 10 was not achieved.

1) The figure for staff turnover only includes employees who resigned.
2) An accident is deemed to be reportable if it results in the injured employee being absent from work for more than three calendar days. The day of the accident itself is not counted.
3) Plants in the DEUTZ Group, excluding joint ventures.