Volkswagen Group adopts charter for temporary work

• Board of Management, employee representatives and IndustriAll Global Union sign charter

Munich/Wolfsburg, November 30, 2012 – The Volkswagen Group Board of Management, the European Group Works Council and the Global Group Works Council of Volkswagen Aktiengesellschaft have today signed a “Temporary Work Charter for the Volkswagen Group”. The charter lays down the principles for the use of temporary work throughout the Volkswagen Group. The points covered include ensuring appropriate employment and remuneration conditions for temporary employees.

The Charter was signed on the occasion of the meeting of the Global Group Works Council at commercial vehicles brand MAN in Munich by the Chairman of the Board of Management, Prof. Dr. Martin Winterkorn, the Board Member of Volkswagen Aktiengesellschaft responsible for Human Resources, Dr. Horst Neumann, the Chairman of the Global Group Works Council, Bernd Osterloh, and by Berthold Huber as President of the international trade union federation “IndustriAll Global Union”.

Board of Management Chairman Prof. Martin Winterkorn emphasized: “At Volkswagen, we are well aware of our responsibility for each individual employee and act in line with this responsibility. This applies to both permanent and temporary employees. The Charter, through which we are ensuring appropriate employment and remuneration conditions for temporary workers, shows that we take this responsibility seriously.”

Group Works Council Chairman Bernd Osterloh said: “With this agreement, we are again setting a milestone in equal treatment for employees. In the Volkswagen Group, temporary workers are not second-class employees. The Charter provides for the implementation of equal pay and equal treatment as well as for a maximum duration of deployment. The charter is a key further development and a supplement to existing agreements, especially the Labor Relations Charter of the Volkswagen Group.”

Board Member for Human Resources Dr. Horst Neumann underlined: “Volkswagen uses temporary labor in moderation as a necessary flexibility tool. At the same time, temporary employees at Volkswagen benefit from training opportunities. Temporary work offers individuals prospects of joining our permanent staff as well as improved employment opportunities outside the Group.

”Berthold Huber, the President of “IndustriAll Global Union” and IG Metall, underscored: “The charter states that the number of temporary employees will always be in an appropriate ratio to the number of permanent staff. The agreement between the employer and employee representatives that temporary work will not be misused as a tool for cost reduction is further confirmation of the special culture of codetermination at Volkswagen. This codetermination culture is one of the main reasons for the success and strength of Volkswagen.

In the charter, the employer and employee representatives have agreed on the following main points:

• For Volkswagen, the moderate use of temporary work is a necessary flexibility tool.

A share of five percent temporary employees is a guideline.

• The principle of equal pay will be implemented in a staged plan. With growing experience and qualifications, the remuneration of temporary employees within the Group will develop in line with that of permanent staff.

• Temporary work within the Volkswagen Group will be linked to a training offering for temporary employees.

• In addition to vocational training and trainee programs as well as direct external recruitment, temporary work will be a third route to membership of the permanent staff of Volkswagen.

• Volkswagen uses temporary work to compensate for fluctuations in economic conditions and to master special challenges calling for a temporary increase in personnel.

Original source: VW media