Sustainable Value Report 2001/2002 - BMW Group

Christmas bonus paid to the average employee
were equivalent to three gross monthly salaries
for a full-time employee with six years seniority
at BMW.The financial benefits and BMW Group
training program were rated as “exemplary” in
the Dow Jones Sustainability Index 2000. BMW
employees in Germany received over c526
million in the form of bonus payments in 2000.
BMW AG pension and investment plans
include the BMW asset development program
introduced in 1974. Since 1989, employees
have had the option to purchase preferred
BMW shares.This program was used in 2000
by over 46 percent of eligible participants in
Germany. In November 2000, the national works
council and BMW Group executive board
signed an agreement enabling BMW AG
workers to participate in a private pension
fund.This personal retirement capital is based
on a system of deferred payments. During an
employee’s years of active service with the
company, a percentage of the gross monthly
income is set aside in an investment fund until
the person reaches retirement age. Although
there is no ceiling on the potential net yield,
the minimum interest rate is currently 3.25
percent. Other retirement plans include the
BMW pension fund and a life insurance policy.
BMW Group personnel costs in million euros*
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
’96 ’97 ’98 ’99 ’00
5,033 5,535 5,896 6,177 5,976
Includes BMW AG personnel costs in million euros*
3,144 3,198 3,516 3,722 4,001
* includes base pay and benefits
Work-Life-Balance: Well-adjusted workers
The Work-Life-Balance model aims at combining
careers with other tasks and interests to the
greatest extent possible.This gives employees
a chance to follow through with their personal
life plans.The company benefits by attracting
highly-qualified, committed employees who are
looking for more than a good salary.
Flextime models are an important factor in
job satisfaction. Over one-third of all BMW
workers are on flextime schedules. Altogether,
the company offers over 300 different work
schedules. For example, nearly 15,000 employees
at 5 BMW plants work a 4-day week. At 3.3
percent, the BMW Group has one of the highest
proportions of part-time employees in the
German automobile industry.
Flextime work schedules are also an important
aspect of the Work/Life Balance model.
Over 1,000 BMW AG employees participate
for example in alternating teleworking plan.The
growing number of employees on sabbatical
leave is a clear indicator of the overall acceptance
of progressive work programs at BMW. Last
year, over 600 BMW employees took sabbaticals.
Nearly 2,000 employees have participated in
this program since it was first launched in 1994.
Cost of benefits paid by BMW AG in
million euros*
2,200
2,000
1,800
1,600
1,400
1,200
1,000
’96 ’97 ’98 ’99 ’00
1,542 1,571 1,748 1,817 2,000
* includes paid sick days, cash bonuses, social benefits,
retirement pay, social services, social welfare, training
expenses
BMW workers at Rosslyn, South Africa
and Spartanburg, USA
69