Relationship between Employers and Employees

Effect

Involving employees in the decision-making process is an important factor within the REWE Group as it promotes the trusting cooperation. In addition, the REWE Group strives to achieve a stronger identification of the employees with the company. The REWE Group is aware that the involvement and co-determination of its employees as well as transparent communication are particularly important given the company’s cooperative structure and size with more than 384,000 employees throughout Europe (see section Cooperation with Employee Committees).

Principles

The basis for action is the Group’s Guideline on Sustainable Business Practices which in turn is based on the United Nations Universal Declaration of Human Rights and the conventions of the International Labour Organization (ILO). The Guideline states: “We respect the employees’ right to form independent and free workers' organisations and to conduct free negotiations on employees’ wages and rights."

Responsibility and Resources

Dr Daniela Büchel (Member of the Management Board – People and Sustainability Officer) is responsible for strategic control.

In her function as Labour Director, Dr Daniela Büchel regularly involves works councils, staff and trade unions in HR work, thus strengthening co-determination.

The respective HR departments of the individual companies are responsible for the operational implementation of the issue of employee-employer relations.

Implementation

Employees’ co-determination is of utmost importance at the REWE Group. The relevant legal, collective and company regulations are implemented in the required trusting cooperation with employee representatives. Almost all employees in the stores, the logistics and the administration of the combine are represented by works councils – for branch-based retail within a structure optimised by an organisational collective agreement.

Involvement of Stakeholders

In the REWE Group’s materiality analysis, the topic of co-determination rights was classified by stakeholders as relevant (see section Materiality Analysis). They are informed annually via the Sustainability Report about the measures taken and their effectiveness. The REWE Group’s employees can constantly provide important input on employee issues. Depending on the topic, various formats are available for this, such as employee representatives, committee meetings, training, working groups or surveys. For more information, please refer to the Compliance section.

Staff representatives as elected committee representatives of the works councils or supervisory boards are involved in virtually all decisions of the REWE Group. In accordance with the stipulated co-determination and other participation rights, the employee committees are informed in good time pursuant to the statutory labour law regulations in Germany, opinions are obtained and agreements reached with them. European and German labour law guarantee sufficient and appropriate advance notice – in Germany at least up to three months – including the necessary information, consultation and participation, for example in the case of operational changes, mass redundancies or changes of ownership.

The REWE Group works consistently, intensively and in a spirit of trust with the works councils. Their representatives are integrated in various bodies, such as the IT or the logistics committee. Operational changes are discussed together at an early stage.

In the event of redundancies for operational reasons, the REWE Group develops social plans together with the employee committees if necessary. These often include provisions for the qualification of employees to promote their entry into other positions.