As per December 31, 2016, the core workforce of the Salzgitter Group numbered 23,152 employees, which is 372 people less (2 %) compared with the end of the financial year 2015. This reflects the implementation of the “Salzgitter AG 2015” program. The core workforce of the companies included herein has declined by 279, which comprises 195 staff reductions under “Salzgitter AG 2015”. A counter trend emanated from the initial consolidation and business combination of various companies, which resulted in a total of 154 employees being included in the personnel statistics for the first time. In addition, we have raised the number of our employees mainly at the KHS international companies based on the expansion of activities and in line with our strategy.
Including trainees and employees in non-active age-related part-time work, the core workforce of the Salzgitter Group stood at 25,168 persons.
At the end of the year we had 964 temporary employees, which corresponded to 4.0 % of the sum total of core workforce members and staff outsourced. The number of external temporary employees has therefore risen by 134 in a year-on-year comparison.
As of December 31, 2016, no members of the workforce were working short time.
|Core workforce Group1)||23,152||23,524||-372|
|Strip Steel Business Unit||6,062||6,130||-68|
|Plate / Section Steel Business Unit||2,585||2,952||-367|
|Mannesmann Business Unit||4,731||4,895||-164|
|Trading Business Unit||1,914||1,858||56|
|Technology Business Unit||5,301||5,146||155|
|Industrial Participations / Consolidation||2,559||2,543||16|
|Apprentices, students, trainees||1,452||1,494||-42|
|Non-active age-related part-time employment||564||441||123|
|Germany||Rest of Europe||America||Asia||Other regions|
Personnel expenses amounted to € 1,655.3 million in 2016, which is 1.2 % lower than the year-earlier period. Among the effects that raised expenses were the expansion of the consolidated group, along with increases from collective bargaining. The impact of the “Salzgitter AG 2015” reorganization program and additional structural programs compensated for these increases.
Part of the restructuring measures of Ilsenburger Grobblech GmbH (ILG) and Salzgitter Mannesmann Grobblech GmbH (MGB) included a reconciliation of interests and redundancy scheme for each company. In the case of ILG these measures were supplemented by a company-specific collective agreement. Measures to improve earnings were negotiated at Salzgitter Mannesmann Line Pipe GmbH in addition to the MLP 2020 program of action. The same applied to a restructuring agreement.
All in all, the implementation of the personnel-related effects identified under our “Salzgitter AG 2015” streamlining program progressed according to plan. As of December 31, 2016, the Group’s potential for personnel reduction identified at more than 1,500 jobs had been realized. The basis of this process is formed by a Pact for the Future signed back in 2013 between the Executive Board and employee representatives, accompanied by IG Metall. Since launching the program the instruments largely used comprised the signing of severance agreements and natural fluctuation; key structural areas under the implementation were focused on Peiner Träger GmbH (PTG), the Salzgitter Mannesmann Precision Group (SMP Group) and Salzgitter Flachstahl GmbH (SZFG).