2017 Integrated Report – Departure into a new era

Employment conditions improved

The agreement with the Railway and Transport Workers Union (Eisenbahn- und Verkehrsgewerkschaft; EVG) in December 2016 and the German Train Drivers’ Union (Ge­­werkschaft Deutscher Lokomotivführer; GDL) in March 2017 to raise scale wages by 2.5% as of April 1, 2017 was implemented, along with the agreed improvements for young professionals, such as increases in apprenticeship/student pay, introduction of a rental allowance and one-time premium to the company pension two years after the start of employment. For the period from October 1, 2016 to March 31, 2017, a one-time payment was made in the amount of € 550 for employees and € 250 for vocational trainees and students in the dual-degree program.

In addition, an agreement was reached with the unions regarding the employees’ individual right to choose their working hours. Each employee had until June 30, 2017 to choose among three models: a 2.62% pay increase, a reduction in working hours of one hour per week or six additional days of vacation. The model chosen is applicable as of January 2018. A total of 58% of employees chose additional vacation, 40% chose the pay increase and 2% chose the reduction in working hours. The active response rate was 70%.

A new collective bargaining agreement “Work 4.0 EVG 2016” was concluded, which replaced the existing collective bargaining agreement “Work 4.0.” It mainly covers the specification of basic principles governing mobile work, the standardization of the rules governing on-call duty, which includes the introduction of performance-based pay for on-call duty, binding rules on how to handle changes in job descriptions and participation in productivity gains due to digitalization. The implementation of the joint model projects commenced in the year under review.

As part of the continued development of the collective bargaining agreement designed to address demographic change (DemografieTV), the incentive to contribute pay or overtime to the long-term account and the incentive to use the health weeks was agreed upon in the year under review.

DB Group’s agreement with GDL will improve personal planning certainty, such as term of notice for days off and shifts, rules intended to standardize the allocation of work­­ing hours, and an evaluation of pilot projects on scheduling shifts and time off. In addition, the wage structure for locomotive drivers was addressed in three stages and the wage structure for train attendants and catering staff was further developed, effective as of April 2018.

The collective bargaining agreement concluded with the GDL in 2014 regarding special terms in the event of loss of ability to perform transport services (FDU-TV) was primarily expanded in its scope. As of June 1, 2017, train attendants and catering staff who are no longer able to perform their previous occupation will fall under the scope of the FDU-TV.

The variable compensation was already converted to a pure profit-sharing scheme for executives and employees not subject to collective bargaining agreements as of January 1, 2017. Thus, only the joint success in the integrated rail system and DB Group will count for the profit-sharing. The personal goal component is no longer applied as part of the profit-sharing scheme. The specific target values are de­­fined by the Group Management Board as part of mid-term planning. Instead of the previously used plan/actual comparison to determine target achievement, we will use reference values that remain stable for several years. These stable reference values support the sustainable aspect of our DB2020+ strategy.

For an improved balance between work and individual needs, for employees not subject to collective bargaining agreements the option to choose one’s working hours or vacation time was introduced in the Group Works Council Agreement. With effect as of January 1, 2018, employees not subject to collective bargaining agreements also have the option to choose between six additional days of vacation per year or reducing their weekly working hours by one hour. When one of these options was selected, the individual annual base pay was reduced by 2.5%. As of 2018, executives also have the option to choose six additional vacation days and receive a respective reduction of their annual base pay.