Michelin couv courteGB

Change in payroll costs
In 2004, payroll costs amounted to 31.2% of Group sales or
€4,871.91 million, including €957.24 million social charges
borne by the employer.
Group payroll charges breakdown as follows:
• Basic wage 62.3%
• Deferred charges and benefits 28.5%
• Overtime 1.3%
• Allowances, allocations and bonus pay 7.9%
The Group’s pay policy, managed with a long-term view and
designed to reward individual and management skills, is based
on career management and attuned to market changes. For the
sake of consistency, Michelin’s managers compensation is
governed by rules and processes common to all entities. It hinges
on variable pay and achievement of targets.
For example, in France, which has by far the largest number of
employees (31,000) and where inflation ran at 2.1%, 2004 wage
increases were as follows:
• Production workers: + 2.4%
• Administrative/technical staff + 2.8%
• Management + 3.3%
Equal pay
Average wage difference as between men and women:
• Production workers: + 0.1%
• Administrative and technical staff – 5.2%
• Management – 5.0%
In each country, the average wage spread as between men and
women was calculated for the largest category of staff. An average
weighted number was then calculated for the Group as a whole.
The spread can be attributed to company seniority, or experience,
which is lower among women. Across all personnel categories,
pay management rules are the same for men and women.
Profit sharing, bonuses,
Company savings scheme
In France, the profit sharing scheme set up jointly with trade
unions was implemented during 2004. The relevant triggers are
the number of progress ideas authors, the percentage of ISO
14001-certified staff (for MFPM*) the frequency of accidents at
the workplace, the volume of raw material waste, the order fill
rate and employability (at site level). In 2004, an aggregate
amount of €32.7 million (versus €20 million in 2003), was paid
under the profit sharing scheme, or an average of €1,247 per
head, equal to 4.5% of gross wage.
The total amount of employee bonus schemes amounted to €4.3
million, or €160 on average.
In several countries – Germany, the Netherlands, France, North
America – retirement savings plans have been set up to allow
employees to provide for their own pension benefits and
benefit from an employer’s contribution of up to 50% of their
down payment.
*MFPM: Manufacture Française des Pneumatiques Michelin, the Group’s largest French
industrial and trading entity.
4 - Professional relations,
collective bargaining
Throughout Europe (with the exception of Russia) agreements
have been signed with unions on a wide range of industrial
relations, based on local legal provisions.
The countries that have adopted inter-branch agreements are the
following: Germany, Belgium, Spain, France, Hungary, Italy, the
Netherlands, Poland, United Kingdom, Brazil, Colombia, China,
Japan, Taiwan and Thailand.
In 2004, the world over, numerous meetings were held (more
than twenty in some countries like Spain, Belgium, Poland, the
United Kingdom, Columbia and Japan). Over and above the
formal aspects, these gave rise to opportunities for exchange.
The main agreements concluded were as follows:
In Europe
• France: two gradual early retirement agreements and guaranteed
effective rate; profit sharing schemes pegged to site
performance; an amendment to the agreement at Pneu
Laurent on flexible working hours;
• Germany: EVA agreement on industrial competitiveness and
pay;
• Hungary: annual round of negotiation of the inter-branch
agreement at national level and of two industrial site-level
amendments;
• Italy: national agreement on the Rubber Workers branch
agreement and 12 site-level agreements;
• The Netherlands: the branch agreement was extended
to April 1, 2005;
• Poland: the branch agreement;
• Spain: inter-site collective bargaining for production, sales and
research center facilities for the 2004 – 2006 period; setting