Remuneration policy and work time regulation

The objective of the Group-wide remuneration policy is to ensure that personnel costs are in line with the development of the company’s business. Our remuneration systems are based on performance and results, in accordance with the market standards for internationally operating companies in our sector. In addition to fixed salaries, which are specified by collective bargaining agreements or individual employment contracts, the employees of HeidelbergCement AG also receive variable remuneration components that depend on individual job performance and the success of the company. The employees of our foreign subsidiaries profit from attractively designed remuneration systems that correspond to the conditions of the respective local labour markets. Temporary employment is not common in our company.

Personnel costs and social benefits
In 2010 our expenditures for wages and salaries, social security and pension scheme contributions and social aid increased by 2.2% to EUR 2.086 million (previous year: EUR 2.042 million). The amount of the contribution to the company pension scheme corresponds to the accepted market level. In Germany, for example, we have created the possibility of tax-free deferred compensation within the framework of an employee-financed company pension scheme. Similar provisions apply at our locations in countries where there are no state-supported pension plans or national health insurance. In these countries we provide our employees with support that is commensurate with local practices. In this regard our employees benefit from being part of an internationally active group, which typically offers better standards.

Work time regulation
In our work time regulation practices, we conform to the legal requirements in effect at our locations. We promote adherence to these regulations by means of our compliance system, which employees can use to individually report possible violations (passive monitoring). In Germany, for example, the works council conducts random testing on an annual basis to determine whether there have been violations of the work time regulation.

In terms of flexible work time options, we offer models such as flextime, part-time positions and leaves of absence. Part-time work currently accounts for 9.3% of all positions at HeidelbergCement AG. Older employees have the options of early retirement or, for example, pre-retirement part-time work.