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Human Resources
ENCOURAGING EMPLOYEES TO EMBRACE
GROUP OBJECTIVES AND ENABLING THEM
TO SHARE IN GROUP EARNINGS
To manifest every employee’s membership
in the corporate community, incentive
bonuses based on operating margin are
paid to all employees around the world.
For 2002, the total amount represented
3.6% of payroll, including employer taxes
and social security contributions paid in
each country. In all, more than €249
million will be allocated worldwide in
2003, under both this incentive system and
the legally-mandated French profit-sharing
on 2002 income.
DEVELOPING EMPLOYEE SAVINGS
Employees in France can participate in
two corporate savings plans, one invested
in Company shares, blocked for five
years, and the other a retirement savings
plan. Company matching payments
into these plans totalled €15.9 million (1)
in 2002, versus €12.7 million the
year before. Similar employee savings
incentives are being introduced outside
France, with the creation of savings plans
in Spain in 2002 and the United Kingdom
in 2003.
RESPONDING TO EMPLOYEE CONCERNS
ABOUT RETIREMENT BENEFITS
In response to employee concerns about
their future retirement benefits, supplemental
defined contribution retirement plans were
set up in a number of countries in 2001.
These plans supplement social security
pensions to offset the forecast decline in the
replacement rate. In Spain, length-of-service
awards to managers have been transformed
into a defined contribution plan with the
initial capital financed by the Company. For
other categories of personnel, provisions
corresponding to length-of-service awards
have been paid into a group insurance plan.
In the United Kingdom, the new defined
contribution stakeholder plan introduced
for new hires offers more favorable benefits
than the average plan on the market.
Employees can elect to contribute between
1 and 5% of their salary to the fund of their
choice. In response to the new Riester
pension act, the German subsidiaries have
set up two systems: a pension fund and an
insurance contract that lets certain
employees benefit from tax subsidies in
addition to their contributions.
IN FRANCE, AN INNOVATIVE AGREEMENT AND A NEW SUPPLEMENTAL RETIREMENT
PLAN
Applicable to the more than 30,000 employees of the main French companies in the
Automobile and Logistics and Transportation and Finance Divisions whose compensation
exceeds the social security ceiling on contributions, the new plan will provide
supplemental retirement benefits to offset the forecast decline in replacement rates.
The defined contribution system, which came into effect on July 1, 2002, replaces the
former defined benefits plan. It is financed two-thirds by the Company and one-third by
the employees, with employee savings invested in mutual funds managed by a joint
Company-employee commission. The approach taken by all parties demonstrates a
commitment to implementing measures today to maintain the level of future employee
pensions. It supports PSA Peugeot Citroën’s employee relations policy by strengthening
the employee savings plans already in place, and especially the Long-Term Employee
Stock Ownership Plan introduced in 1999.
(1)
Excluding the finance companies
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PSA PEUGEOT CITROËN - MANAGING BOARD REPORT