MICHELIN - 2008 ANNUAL REPORT

In Europe and Canada, Michelin Development promotes job
creation in the regions where the Group operates (see below
paragraph 10 on the territorial impact of job promotion operations
and local development); these actions facilitate reclassification
outside of the Group but also maintain or increase the local
economic dynamism by the creation of many jobs.
In 2008, Michelin introduced, due to the closing of the Kleber site
in Toul, involving the suppression of 826 jobs, the Professional
Transition Workshop (Ateliers de Transition Professionnelle/ATP)
system, to support successive groups of employees who joined
the Kleber Mobility Program in their job searchs with a number of
ressources inlcuding: advisers, information workshops to discover
other trades (robotics, masonry, welding, industrial of domestic
electricity...), a parternship with ANPE (National Employment
Association in France) and a Documentation center. All these
means proved their effectiveness: at the end of December 2008,
more than 333 employees had found a new activity. In addition,
Michelin Development is also in action in the area of Toul and the
first three planned and externally developed projects will allow
the creation of more than 450 new jobs.
In Italy, a job search office was set up on all the Group sites,
to facilitate internal and external evolutions of the employees
affected by the implementation of the Industrial Plan. Announced
at the end of October 2008, it will extend until 2010 and will
concern 680 people. By the end of 2008, 73 employees had
found a solution, either in-house, or in another company, or by
the creation of their own activity.
2. LABOR ORGANIZATION AND WORKING HOURS, PART-TIME
WORK, ABSENTEEISM
Labor organization
Working hours in the Group’s 68 industrial plants and dozens
of research, logistical, sales and administrative sites, are fixed
pursuant to legal provisions which vary from country to country.
For full-time employees who are not working in shifts, the annual
work time varies from 1,661.4 hours in France to 2,304 hours per
year in Colombia, and 213 days in France to 262 days in the US.
Shift work serves to optimize industrial facility utilization by
enabling maximum production time (up to 360 days/year, 7 days/
week). Shift workers enjoy significantly reduced overall work time
and additional compensation. On a Group-wide basis, more than
60,000 people work in shifts, mostly 3x8 hour shifts, but also
4x8, 5x8, 2x12 and week-end shifts, reflecting different industrial,
legal as well as local practices.
Part-time work
Part-time work contracts are available in most countries where
the Group has industrial operations. Overall, 2.0% of the Group’s
workforce work part time across all job categories.
3. CHANGE IN PAYROLL AND WELFARE COSTS, EQUAL OPPORTUNITIES FOR MEN AND WOMEN, PROFIT-SHARING, BONUSES, COMPANY
SAVINGS PROGRAMS
2008
Total payroll
(EUR million)
Production
workers
Administrative/technical
staff
(EUR thousands)
Wages and salaries 3,296,125 71.6%
Social security costs 1,024,522 22.2%
Defined benefit plans
and severance costs 274,419 6.0%
Share option plan costs 10,477 0.2%
TOTAL 4,605,543 100.0%
Percentage of part-time male and female employees, by
status, in overall headcount as of December 31, 2008
Female Male Total
Production workers 3.7% 1.6% 1.8%
Administrative
and technical staff 7.6% 0.6% 2.4%
Management 11.0% 0.7% 2.3%
Total 6.2% 1.3% 2.0%
Scope: Group excluding Euromaster and TCI.
Absenteeism
Absenteeism on Michelin sites in the majority of countries
concerned tends to be lower than national rates in similar sectors.
For the Group, the total, all causes included was 4.2% (number of
hours of absence versus expected number of hours worked).
Sick leave Injury leave Long-term sick leave Total
Group
2.3% 0.2% 1.8% 4.2%
Managers
Fixed-term
contracts
Severance pay
and restructuring
Taxes, provisions,
pre-payments
4,605.5 1,911.0 1,764.3 584.5 60.8 -6.4 291.3
The total figure “taxes, provisions, pre-payments” includes taxes, provisions for retirement benefits, stock-option pre-payments and other long-term prepayments.
Change in payroll and welfare costs
In 2008, payroll and benefits costs accounted for 28.1% of net
sales, amounting to EUR 4,605.5 million, of which EUR 1,024.5
million social charges borne by employers.
Group payroll and social charges breakdown as follows:
The Group’s pay policy is designed to offer competitive compensation
in each country, through an optimal balance between employee
satisfaction and Group economic performance. This key aspect
is the subject of careful management as pay levels have a direct
impact on the cost of sales and therefore the Group’s capacity to
maintain its position against its competitors. The Group’s pay policy,
managed with a long-term view, rewards individual responsibility,
performance in achieving common objectives, career path, and local
practice and market developments. All categories of staff, including
production workers, benefit from customized pay packages that
reflect individual contributions to Group development.
Other Information
Additional Information Consolidated Financial Statements The Managing Partners’ Report Michelin at a Glance
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