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Employees and society

Employees and society

MTU as an employer

We create an innovative and respectful working environment in which our employees can develop in the long term and deliver the best results for MTU. As an attractive and responsible employer, we also find the talented people we need for future projects and tasks.


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Our employees make a major contribution to MTU’s long-term success. That is why we want to create a world of work that inspires and connects. In this way, we can tackle tomorrow’s product innovations together today. 

We are an important driver of technology in the high-tech sector of aviation. Being perceived as an attractive employer by existing and potential employees is one of the key ways in which MTU ensures it retains its capability to innovate and remains competitive. In addition, we are competing with other technology companies for the best people at our locations worldwide. We are in the process of ramping up production, expanding at several locations and thus recruiting more new employees. This means being perceived as an attractive and future-oriented employer is particularly important for all international MTU subsidiaries. We want all our employees to be able to deliver their best possible contribution to MTU’s continued success. This is also important against the background of demographic developments and the digitalization of the world of work. We launched a Digital Transformation Program in 2018: In 300 projects, we are driving digitalization throughout the company. We’re looking to recruit new experts to support us in this challenge.

9,731
employees at MTU
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Our workforce is growing: at the end of 2018, MTU had a total of 9,731 employees working around the world at its fully consolidated sites. This is 10% more than in the previous year.

MTU’s global workforce grew by 10% in 2018, reaching 9,731 employees at the end of the year (2017: 8,846). The number of employees rose in all regions, most strongly in Europe. 9,051 employees (93%) were employed in Europe—84 percen in Germany alone. The share of the workforce in North America was 7%. MTU has maintained a workforce of more than 8,300 employees over many years. Over 90% of employment contracts were permanent in 2018.

MTU’s employees by region

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Total workforce at fully consolidated sites including apprentices, interns, thesis students and doctoral candidates, students and holiday staff, temporary part-time employees on parental leave, and marginal workers, but excluding temporary agency workers and inactive employment contracts; as at December 31 each year. MTU’s shareholdings in joint ventures in Europe and Asia are not fully consolidated and are therefore not included.

Responsibility for employment issues lies with the Executive Board. The CEO is also the Director of Labor Relations. MTU’s human resources department sets policy in line with the annual and long-term growth targets laid down in our corporate strategy. It also assists in efforts to achieve these targets. The full Executive Board receives regular reports on human resources policy. Responsibility for successful implementation lies with local human resources departments and the respective technical departments and managers. We adapt our human resources policy to take account of changes relevant to us and reflect these in the measures and initiatives derived from this policy. The inclusion of various factors in our human resources strategy plays a decisive role in creating a sustainable working environment. From our point of view these factors are diversity, lifelong learning, health, leadership culture and digitalization.

Employee groups by region GRI 102-8

 

2018

2017

2016

Blue collar workers

 

 

 

Germany

 49.4%

 50.0%

 49.2%

Rest of Europe

 51.5%

 49.7%

 46.5%

North America

 49.5%

 47.9%

 52.5%

White collar workers

 

 

 

Germany

 50.6%

 50.0%

 50.8%

Rest of Europe

 48.5%

 50.3%

 53.5%

North America

 50.5%

 52.1%

 47.5%

Employees on temporary contracts

 

 

 

Germany

701

346

177

Rest of Europe

154

North America

11

Apprentices

 

 

 

Germany

279

287

311

Supervised workers

 

 

 

Germany

513

539

395

Rest of Europe

1

40

7

North America

0

0

0

Blue-collar and white-collar employee groups measured as a proportion of the active workforce (employees with permanent or fixed-term contracts, temporary part-time employees on parental leave, excluding students, interns, trainees/apprentices, short-term holiday workers, temporary agency workers and employees from external companies); we have been collecting data on employees on temporary contracts for all regions since 2018.

  

We create fair working conditions

As an employer, MTU shows responsibility towards its employees by creating long-term, secure employment based on key principles of corporate social responsibility. These social and labor standards are defined in a Group-wide Code of Conduct and incorporate:

MTU Code of Conduct

Reporting procedures for suspected breaches of the Code of Conduct, statutory requirements and internal company guidelines, and our principle of zero tolerance are described in detail in the →Compliance and → Human rights chapters. The chapter on human rights also deals with the issue of discrimination. As a signatory to the UN Global Compact, we are committed to observing its principles of respect for human rights and the implementation of fair working conditions in accordance with the International Labour Organization’s (ILO’s) core labor standards.

We respect employees’ rights and safeguard their freedom of association through the Code of Conduct. When drafting employment contracts, we observe national statutory requirements as well as internal company agreements and notice periods as laid down by law. It is the duty of managers to ensure that company agreements are properly observed on a day-to-day basis in their areas of responsibility. In 2018, 98.3% of the people employed by the company were covered by collective agreements, a figure that stood at 86.2% worldwide in the same year.

  

Our contribution to the SDGs

The following UN Sustainable Development Goals (SDGs) are relevant to MTU’s human resources work: SDG 4 on “Quality education”; SDG 5 on “Gender equality”; and SDG 8 on “Decent work and economic growth.” Over the past five years, MTU has created almost 1,400 new, high-quality jobs across the Group and is pursuing the overall goal of conducting sustainable business. For us, this also includes offering all employees the same fair and innovative working conditions.

Quality education
Gender equality
Decent work and economic growth

→ Learn more about our contribution to the Sustainable Development Goals (SDGs)

  

In dialog with our employees

We place great emphasis on trusting and respectful relationships with our employees and take their concerns into account: in accordance with the German Works Constitution Act (Betriebsverfassungsgesetz), MTU’s sites in Germany have works councils that maintain regular, open and trust-based dialog with management. The German sites also have a Group works council that handles Group-related issues. At the company’s sites in Poland and Canada, elected employee representatives support the interests of the workforce in dealings with management. In addition, the interests of employees are represented on the Supervisory Board, where seats are filled on the basis of parity.

Employee surveys with good results

We carry out an employee survey at regular intervals to provide important impetus for the company’s ongoing development. This enables employees and managers to identify potential for improvements and ways to tap that potential. Surveys are regularly conducted in Germany, Poland, Canada and the United States (MTU Aero Engines North America). In Germany, the latest survey was conducted in 2018 and achieved a high participation rate of 81%. The results show positive development overall compared to the previous survey three years ago. The High Performance Organization Index, which measures the performance of a company (e.g. in terms of commitment, leadership, processes, structures), rose to 73%. Calls for action, such as better cooperation across teams and locations or efficiency of decision-making processes, are dealt with by an interdisciplinary team of senior management and the Executive Board in a structured follow-up process. Managers actively drive developments at the divisional and team level in dialog with their employees. MTU Aero Engines Polska in Rzeszów also asked its workforce for feedback in 2018. The participation rate was 70%. Overall, 84% of the employees were highly satisfied with MTU as an employer. In all survey categories, the rating was in the upper third. We apply a follow-up process to design better strategies for team cooperation and further develop leadership skills.

We have established further employee involvement forums at our sites around the world, ranging from works meetings in Germany and town halls in the United States to special instruments such as leadership feedback and team barometers. We are currently revising and improving our ideas management system for improvement suggestions from employees.

  

The outside view of MTU

In addition to internal employee surveys and feedback responses, external rankings provide valuable pointers for our human resources work. In comparative analyses with other companies, MTU receives consistently positive ratings. It again performed well in Germany, Poland and Canada in the most recent TOP Employer rating.

Certifications and rankings in 2018

More about MTU’s awards

We also regard our low staff turnover rate as yet another sign of high employee satisfaction. In the reporting year, this was 4.0% for the MTU Group (previous year: 3.8%). The high level of loyalty to our company is also reflected in employees’ length of service with the company. In Germany, we achieve an average length of service of around 20 years.

Staff turnover GRI 401-1

 

2018

2017

2016

No. of employees that left the company

313

281

319

Germany

228

186

253

Rest of Europe

39

39

18

North America

46

56

48

Turnover rate (%)

4.0

3.8

4.3

Germany

3.5

2.9

4.1

Rest of Europe

5.9

6.9

3.2

North America

7.6

9.9

8.4

Turnover rate measured as a proportion of core workforce, annual average, figures include retirements, 2016 figure for the region “Rest of Europe” adjusted due to incorrect calculation

  

Remuneration and additional benefits

For us, fair wages are part of an appreciative and respectful approach. The right to appropriate remuneration is one of the pillars of MTU’s Code of Conduct. A standardized, transparent compensation structure ensures that employees receive competitive remuneration that reflects their performance, regardless of gender or other characteristics against which discrimination occurs. The remuneration of pay-scale employees in Germany is based on collective bargaining agreements. Compensation for senior managers is tied to the company’s long-term performance.

MTU applies a consistent methodology for evaluating performance at all levels of the hierarchy, from senior managers to employees included in collective bargaining agreements. The performance criteria are based on corporate, center or departmental objectives and are designed to measure how employees and managers contribute to reaching these objectives. Goal attainment is discussed during the year (milestone meeting) and at year-end (goal attainment meeting). All managers undergo performance reviews to evaluate achievement of their personal targets, and 96.6% of MTU employees worldwide regularly receive an appraisal of their performance (at least once a year).

MTU offers a broad range of additional perquisites. One example is the range of social benefits the company offers in Germany in addition to its statutory obligations. These include accident insurance, profit-sharing, family-related and mobility benefits, a healthcare service and training opportunities. The company has a pension scheme for all its employees. At our international locations we offer a range of additional benefits such as private life insurance, health insurance and retirement planning support. The company made social contributions totaling EUR 122.6 million (2017: EUR 114.3 million).

MTU enables its employees to share in the company’s success. Each site does this using different regulations and programs. We also offer an employee stock option program in Germany (participation rate in 2018: 2,113 employees). Some of our international locations offer their own long-term bonus schemes, as in Rzeszów, or award annual bonuses (Vancouver).

   

Achieving a better work-life balance

MTU promotes initiatives to improve employees’ work-life balance and is placing an increasing emphasis on responding to their specific needs and various life phases. This is recognized in the form of top marks in the Secondary Benefits and Work-Life Balance categories of national employer rankings covering all the company’s major sites in Germany, Poland and Canada.

Our initiatives include

We are continuously improving these initiatives to give people more job flexibility and meet the expectations of our employees and job applicants. Part-time working and parental leave are initiatives that employees can avail themselves of. Part-time work accounted for 6.8% of employment (data collected only in Germany, 2017: 6.6%). The number of employees on parental leave in Germany in 2018 rose to 324 (2017: 261), 39.2% of whom were women on parental leave.

Alternative working arrangements (Germany) GRI 102-8, 401-3

 

2018

2017

2016

Part-time employees (in %)

6.8

6.6

6.4

Employees on parental leave

324

311

281

Employees on parental leave, female

127

128

97

The right to parental leave applies to the entire workforce in Germany and is governed by the German Parental Allowances and Parental Leave Act. This stipulates that anyone employed in Germany has a right to time off—regardless of their gender. Given discrepancies between national legal considerations, we do not consider it useful to consolidate these figures at the Group level. 2017 figure for employees on parental leave adjusted following database standardization.

  


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