Audi employees benefit from company’s success

Posted on 02/28/2007 under: News, Audi

The outstandingly good results posted by AUDI AG for the 2006 business year benefit almost 45,000 employees at the Ingolstadt and Neckarsulm sites in Germany in more ways than one: in May, the company will distribute 81.5 million euros (21.7*) among its employees, almost four times more than last year. According to Dr. Werner Widuckel, Member of the Board of Management for Human Resources at AUDI AG: “This is once again evidence that performance pays! When our employees share in the company’s success, this represents a personal success for each and every one of them. With its commitment and dedication to the task in hand, our workforce made a major contribution to Audi’s record production, unit sales, revenue and earnings in 2006.”

Extended employee profit-sharing was negotiated between the General Works Council and Audi Management and the “Audi’s Future – Performance, Success, Sharing” agreement concluded in April 2005. The first payment to employees was made last year: ten percent of the operating result exceeding 1.2 billion euros. In 2006, the brand with the four rings increased its operating result significantly, by 43.2 percent to 2,015 million euros. The average payment to each member of the workforce was therefore 1,959 euros. Widuckel: “This variable, result-based payment component mean that employees’ earnings increase in step with the company’s income. Together with the share of profits paid out in July, the employees’ share in the company’s success averages 3,700 euros. By providing its workforce with this opportunity, Audi once again confirms that it is an attractive company to work for.”

Peter Mosch, Chairman of the AUDI AG General Works Council, comments: “The ‘Audi’s Future’ agreement is proving to be of increasing benefit as a means of safeguarding jobs at the company’s locations in Germany and entitling the employees to a share in the company’s success. The average payment of 1,959 euros to colleagues with negotiated working agreements is good news for those who work in Ingolstadt und Neckarsulm and financial recognition of their exceptional efforts last year in particular.”

This year, the extended employee profit-sharing arrangement will be paid for the second time in addition to the regular employee profit-sharing arrangement. The latter is made up of a basic amount, a bonus depending on length of employment and a variable element. The total sum to be paid out to employees in July is 73.4 million euros (72.6).

* Last year’s figures in brackets

Source: Audi