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Growth Strategy<br />

Corporate<br />

Governance<br />

Business Review<br />

Corporate Policies<br />

Management’s<br />

Discussion<br />

and Analysis<br />

Statistics<br />

SIGNIFICANT AGREEMENTS<br />

IN THE AUTOMOBILE DIVISION<br />

IN 2001 AND 2002<br />

France: Eight agreements signed,<br />

concerning wages, working hours,<br />

vacation time, incentive systems,<br />

union rights, supplemental<br />

retirement plans and working<br />

conditions.<br />

Spain: 2001-2003 convenio signed,<br />

concerning wage increases for nonmanagerial<br />

staff, shorter working<br />

hours on an annual basis, the<br />

convergence of employee categories<br />

and the redundancy plan for the<br />

Madrid and Vigo plants.<br />

Argentina: Agreements concerning<br />

adjustments to economic conditions<br />

and flexible working hours. Renewal<br />

of the “social peace” agreement.<br />

United Kingdom: Agreements<br />

concerning negotiation and<br />

consultation, with changes in<br />

committee membership and in<br />

negotiation processes. Other<br />

agreements on increases in wages<br />

and employee contributions to<br />

pension plans, on the organization<br />

of work and the introduction of the<br />

stakeholder plan. Continuous running<br />

agreements and introduction of a<br />

fourth shift.<br />

Brazil: Collective agreements<br />

concerning a general wage increase,<br />

shorter workdays and improved<br />

living conditions, a 2002 profitsharing<br />

program, and agreements on<br />

collective vacations and flexible<br />

working hours.<br />

Germany: Agreements on a code of<br />

ethics concerning the use of new<br />

information systems, and on<br />

guidelines for managing geographic<br />

transfers in the Peugeot marketing<br />

subsidiary. Agreements on holidays<br />

and procedures governing working<br />

hours.<br />

ENCOU<strong>RA</strong>GE INVOLVEMENT IN<br />

THE COMPANY BY EMPLOYEES<br />

AND EMPLOYEE REPRESENTATIVES<br />

WORLDWIDE<br />

SUSTAINED, REVAMPED SOCIAL DIALOGUE<br />

The quality of social dialogue in a company<br />

is based on a commitment to working<br />

together and on an affirmation of the role<br />

and mission of employee representatives.<br />

The signature in France of two agreements<br />

on union rights in 1999 and 2001 reflects<br />

this commitment to involving employee<br />

representatives in the life of the company.<br />

The Group intends to pursue social dialogue<br />

by working with independent unions.<br />

Agreements on the exercise of union rights<br />

concern such areas as recognizing that<br />

employees can be union representatives<br />

while retaining their professional<br />

responsibilities, providing information and<br />

training for employee representatives and<br />

ensuring sufficient resources for the smooth<br />

functioning of union organizations. In France<br />

as in other countries, every employee<br />

working in a production plant, service facility<br />

or major marketing organization is<br />

represented by independent unions or<br />

employee representatives. Employees in all<br />

of the Group’s European units are<br />

represented by a European Works Council<br />

created in 1996.<br />

BUILDING CONT<strong>RA</strong>CTUAL RELATIONS<br />

A large number of agreements on major<br />

corporate issues were signed worldwide<br />

in 2002, in particular concerning wages,<br />

working hours, incentive systems and<br />

supplementary retirement plans. Where<br />

necessary, implementation is being tracked<br />

by a special commission that enables<br />

signatory unions to verify agreement<br />

application. Depending on national and<br />

local conditions, all of the Group’s<br />

member companies and plants contribute<br />

to social and cultural activities and help to<br />

improve the quality of worklife, with food<br />

services, transportation and employee<br />

welfare benefits. In France, more than<br />

1.5% of gross payroll is directly or indirectly<br />

allocated to employee-related activities<br />

and programs.<br />

LISTENING TO EMPLOYEE OPINIONS<br />

In France, four employee opinion surveys<br />

have been conducted by the ESTEL polling<br />

organization since 1998. In 2002, the 1,370<br />

respondents generally said they were<br />

satisfied and confident. In particular, they<br />

found their jobs interesting and appreciated<br />

the working hours and working conditions.<br />

The large majority remains confident in the<br />

outlook for jobs in the industry in general<br />

and their own job in particular. Lastly, 82%<br />

felt that their personal objectives and<br />

assignments were clearly defined, and 78%<br />

believed they were realistic. In absolute<br />

terms, these were very good numbers, and<br />

higher than in previous years.<br />

<strong>PSA</strong> <strong>PEUGEOT</strong> CITROËN - MANAGING BOARD REPORT 71

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