Michelin couv courteGB

Fixed-term Contracts
In 2004, fixed-term contracts accounted for 1.98% of total
Group payroll.
Overtime, interim workers
Recourse to overtime can be decided to cope with staff
availability issues and to adjust to customer demand. The total
number of overtime work carried out in the Group as a percentage
of total number of hours worked over the year varies from under
1% in Europe to around 5% in North America. Overall payroll
with respect to overtime accounted for 1.3% of Group total
payroll in 2004.
Interim work as a percentage of total number of hours worked
varies from 0 to 7.5% in Europe in 2004. Worldwide, interim
work as a percentage of total payroll varies from 1% to 11%,
depending on the country.
1. b - Information concerning staff
downsizing plans
When downsizing is necessary, Michelin Group takes a number
of steps to avoid recourse to lay-offs and provide individual
support to individual staff members concerned.
• Priority is given to internal redeployment options; this step,
which is the most widely used, was implemented in 2004
in particular in Germany, Belgium, China, France, Spain, Italy,
the Netherlands and North America;
• Introduction of a permanent watch system to facilitate internal
and external mobility and anticipate developments (three sites
in France in 2004);
• Recourse to early retirement and similar provisions (CATS in
France, gradual early retirement in Germany, “mobilita corta”
and “mobilita longa” in Italy, and redeployment contracts in
Spain etc.);
• Special compensation, often in excess of minimum legal
obligations (“Separation Packages Plans” in North America);
• Job identification initiatives through the Group’s employment
support offices.
Strategy • Fundamentals • Businesses • Résultats Earnings
Company and environmental information
In Europe, Michelin Development operations are conducted in
the United Kingdom, Spain, Italy, Germany, Poland, Russia,
Hungary and France (under the name SIDE, Compagnie
d’Industrialisation et de Développement Economique).
The mission of Michelin Development is to create jobs in the area
around our sites (see below). Such fillip to local economic activity
helps reconversion of employees who find themselves
in a position where they have to leave the Company.
2 - Labor organization, part time work,
absenteeism
Labor organization
Working hours in all 74 industrial plants and dozens of logistical,
sales and back-office branches are fixed pursuant to the legal
provisions that provide for a 35-hour to a 48-hour week
depending on the country for staff other than production workers.
The most common legal working week is the 40 hour-week.
In countries where the Group manufactures tires, (except for Japan
where the ratio is of 43.5%) between 54% and 78% of staff, that
is a majority, work in shifts, as per local legal and industrial practice.
The number of daily shifts varies widely (with a maximum of five
shifts). Shift work serves to optimize industrial facility utilization by
enabling maximum production time (up to 360 days a year, 7 days
out of 7), while shift workers enjoy reduced overall working time
and additional compensation.
Part-time work
In countries that resort to part-time work, less than 1% of total
staff are concerned in all but a few countries: Belgium 6.5%,
France 5.5% and Italy 2.8%.
Absenteeism
Absenteeism on Michelin sites tends to be lower than national
averages in similar sectors. It ranges from around 1% (Brazil,
Thailand) to 5% (Germany, Spain, Italy, Poland). The Group
average (based on the ten largest countries in terms of number
of employees) is of 3.16%, sick leave accounting for the bulk
of absenteeism.
3 - Change in payroll and welfare costs, equal pay, profit sharing, bonuses,
company savings schemes
(In € million)
TOTAL 2004 Production Administrative Managers Short-term Severance Retraining and
Payroll workers and technical contracts pay reorganization
employees costs
4,871.91 2,189.68 1,775.05 532.69 96.58 5.49 2.77
* In € million, including benefit provisions
120•121