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Employees and society

Responsible employment policy

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 right people with exactly the right talent that we need. We are working on lots of exciting projects and tasks with which we are actively shaping the future of aviation. To do this, we rely on the expertise on the part of each and every one of us.


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We work in teams on our company’s challenges and tasks and support this by providing a working environment that sparks inspiration and brings us together.

We are a driver of technology in the high-tech sector of aviation and want to help shape key changes. Our capability to innovate and remain competitive is key to our existing and potential employees perceiving us as an attractive employer. We draw on a global workforce of motivated and highly qualified employees who pull together to tackle tasks and challenges. Thanks in particular to the ramp-up of new engine programs as well as to automation and digitalization at the company, we are increasingly needing to grow our team of highly skilled professionals. To ensure our continued success, we want to attract the most talented individuals to MTU and create a working environment in which all our employees can perform at their best. We foster this environment with our respectful and cooperative leadership culture in which we recognize strong performance, promote flexible and digital working arrangements and welcome feedback. We offer our employees opportunities for long-term personal development, embrace diversity and inclusion, and protect our employees’ health and safety. That’s what makes us an internationally successful company.

10,660
employees at MTU
graphic

The MTU family is growing: At the end of 2019, MTU employed more people than ever before. 10,660 to be precise—9.5% more than in the previous year.

MTU’s global workforce grew again in 2019, reaching 10,660 employees at the end of the year (2018: 9,731). This corresponds to an increase of 9.5 percent. Our MTU family has been growing and growing since 2016. The number of employees rose in all regions, most strongly in Europe (+9.8%). 9,938 employees were employed in Europe—and 83.8% of the total workforce is in Germany alone. The share of the workforce in North America was 6.8%. 92% of employment contracts were permanent in 2019.

MTU’s employees by region (GRI 102-8)

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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 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.

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 fair and secure working conditions.

Quality education
Gender equality
Decent work and economic growth

→ Learn more about our contribution to the SDGs

We have a human resources strategy that we use to position MTU as a sustainable employer for existing and new employees alike. In 2019, we revised this strategy to further enhance the attractiveness and competitiveness of the company in the labor market. The aim of our efforts to further develop the stature of MTU as an employer is to secure the sustainability of our company, particularly to ease generational change at the German locations, and to utilize the potential of automation and digitalization for the ramp-up of the new engine programs. To this end, an internal team of experts has formulated specific goals to further enhance the MTU working environment and has drawn up fields of action to achieve them. This involves various “futurework@MTU” initiatives, such as knowledge transfer, new forms of collaboration, modern HR tools and the acquisition of expertise required for the future.

We have also introduced common leadership values and rolled them out across the Group in 2019: We transform, we empower, we create trust. These form the basis for a cooperative and coaching-oriented management style and collaboration that keeps MTU on the road to long-term success.

Employee groups by region GRI 102-8

 

2019

2018

2017

Blue collar workers

 

 

 

Germany

 49.3%

 49.4%

 50.0%

Rest of Europe

 50.9%

 51.5%

 49.7%

North America

 49.1%

 49.5%

 47.9%

White collar workers

 

 

 

Germany

 50.7%

 50.6%

 50.0%

Rest of Europe

 49.1%

 48.5%

 50.3%

North America

 50.9%

 50.5%

 52.1%

Employees on temporary contracts

865

866

346

Germany

706

701

346

Rest of Europe

154

154

--

North America

5

11

--

Apprentices

293

306

298

Germany

280

279

287

Rest of Europe

0

0

0

North America

13

27

11

Temporary agency staff

395

514

579

Germany

395

513

539

Rest of Europe

0

1

40

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 workers and employees from external companies); we have been collecting data on employees on temporary contracts for all regions since 2018.

Social working standards apply for all employees

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 this Code of Conduct, statutory requirements, plus our 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 details the anti-discrimination measures we take. As a signatory to the UN Global Compact, we are committed to observing its principles of respect for human rights and equal treatment in the workplace, and we undertake to implement 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 2019, 98% of the people employed by the company in Germany were covered by collective agreements (e.g. collective bargaining agreements), a figure that stood at 85.7% worldwide in the same year.

We welcome feedback and ideas from our employees

The relationships we form with our employees are based on respect and trust and we 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 dialogue 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.

We carry out an employee survey at regular intervals at all of our larger locations 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. The next round of surveys is planned for 2021. Moreover, we have established further employee involvement forums at our sites around the world. These range from works meetings in Germany and townhall meetings in the United States to special instruments such as leadership feedback and team barometers. We use an idea management system to obtain and evaluate improvement suggestions from employees. Another way for employees to contribute is by submitting ideas for smart solutions as part of our regular Ideation Challenges. We take particularly promising suggestions and test their potential and feasibility in projects in our Inno Lab. In addition, in late 2019, we called on managers at certain hierarchical levels to work in interdisciplinary teams to develop a vision for MTU for 2040. We evaluated the ideas submitted as they were pitched, and selected two of the teams to present their visions to MTU’s upper-level management. We will again review all submissions and follow up on valuable impetus.

Award-winning attractiveness as an employer

In comparative analyses with other companies, MTU received several employer awards again in 2019.

Certifications and rankings in 2019

→ More about MTU’s awards

3.4%
staff turnover
graphic

The turnover rate remained at a low level again in 2019. Together, all the programs and measures we pursue help ensure that MTU remains an attractive employer. 

We also regard our low staff turnover rate as yet another sign of high employee satisfaction. In the reporting year, this was 3.4% for the MTU Group (previous year: 4%). 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 14 years.

Staff turnover GRI 401-1

 

2019

2018

2017

No. of employees that left the company

289

313

281

Germany

192

228

186

Rest of Europe

37

39

39

North America

60

46

56

Turnover rate (%)

3.4

4.0

3.8

Germany

2.7

3.5

2.9

Rest of Europe

4.6

5.9

6.9

North America

8.9

7.6

9.9

Turnover rate measured as a proportion of core workforce, annual average, figures include retirements; no data is available on new hires and turnover by age group. We report on new hires in the chapter on Diversity & inclusion

We reward performance with attractive remuneration and additional offers

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 In 2019, 92.8% of all MTU employees worldwide received a regular appraisal of their performance (at least once a year).

We offer a broad range of additional perquisites. In addition to the statutory obligations, in Germany these include accident insurance, profit-sharing, family-related services, mobility benefits, a healthcare service and training opportunities. The company has a pension scheme for all its employees, who can opt to top up the share contributed by the company themselves on a voluntary basis. This gives them the flexibility to manage their own pension funds as they see fit. At our international locations we offer a range of additional benefits such as private life insurance, health insurance and retirement planning support.

114
millon euros
graphic

In addition to their salary, we offer our employees a wide range of social benefits such as a company pension scheme; in 2019, we invested EUR 114 million in such benefits. 

MTU enables its employees to share in the company’s success. Each site does this using different regulations and programs. We also offer an annual employee stock option program in Germany (participation rate in 2019: 2,517 employees). Some of our international locations offer their own long-term bonus schemes, as in Rzeszów (Poland), or award annual bonuses, as is the case in Vancouver (Canada).

Enabling flexible and digital working

At MTU, we believe in teamwork. We recognize the specific needs and various life phases of our employees and respond to these by providing various offers and opportunities for flexible working through a range of part-time models and mobile working arrangements. This way, we help achieve a better work-life balance. Part-time work increased in the reporting year, accounting for 7.4% of employment (data collected only in Germany, 2018: 6.8%). The number of employees on parental leave in Germany in 2019 rose to 395 (2018: 324).

To put collaborative work at MTU on a more sustainable footing, we’re increasing our use of digital working models and plan to enhance them with a social intranet. Using new digital communications channels, we aim to promote knowledge exchange throughout the company and bring employees from different areas into contact with one another.

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

 

2019

2018

2017

Part-time employees (in %)

7.4

6.8

6.6

Employees on parental leave, total

395

324

311

Employees on parental leave, female

143

127

128

Employees on parental leave, male

252

197

183

The right to parental leave in Germany is governed by the German Parental Allowances and Parental Leave Act, which applies to the entire workforce. The legislation stipulates that any employee 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. 

Our initiatives include

  


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