Freedom of Assembly and Social Partnership

Material impacts, risks and opportunities

Due to the global nature of our company, there are country-specific differences in the regulations governing the freedom of assembly. We recognize the right to freedom of association and see positive impacts on the interests of our employees. Upholding the interests of our employees is an integral part of WACKER’s corporate policy.

Strategy

WACKER supports strong social partnership across the Group to take the interests of its workforce into account in its decisions. We consider social partnership to be the constructive relationship between employees and employers aimed at solving clashes of interests through consensus politics and containing open conflict. In this respect, there are legal regulations in place which we implement for WACKER. Our Executive Board plays an active role in associations.

Actions

Employee representatives

Internationally, employees are free to unionize. At non-German sites where there is no employee representation, the HR department is the contact for employee interests. This exchange promotes communication on working conditions and equal opportunity.

In Germany, all sites have formally elected employee representation and employees are free to unionize. General employee meetings held on a regular basis enable the Executive Board, the Council of Employee Representatives and employees to talk to one another.

In the interests of the company’s employees, relations between management and workers’ representatives are close and constructive. The Supervisory Board and the Group Economic Affairs Committee brief workers’ representatives at least four times a year on the company’s financial situation. Issues such as demographic change, labor needs, short-time work, retirement benefits and safe working conditions are discussed with the Group Council of Employee Representatives on an ongoing basis.

Agreements with advocacy groups

Agreements govern key issues between companies and their employees. In Germany, company agreements cover matters like the demography fund, health measures and employee development. In the USA, there are local agreements in place about compensation adjustments. The following table shows collective bargaining coverage and social dialogue:

At WACKER, there is no representation by a European Works Council (EWC), a Societas Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE) Works Council.

We comply with the respective country-specific legislation governing codetermination or employee representation.

In Germany, all sites are covered by collective-bargaining agreements. Worldwide, 81.8 percent of our employees are covered (in the sense of the definition of collective bargaining).