Community

At Arbonia, we foster a dynamic, open corporate culture. In doing so, we aim to create a pleasant, appreciative and supportive work environment and live up to our corporate responsibility. As regional employers, the companies of Arbonia make a contribution by creating and securing jobs, generating income and paying public charges in the form of taxes.

Wages, social benefits, employment level, contract set-up and compensation are to follow the principles of a responsible Group. For this purpose, three central leadership principles were determined: Firstly, colleagues maintain direct, personal working relationships with each other and are open to ideas or other points of view. Secondly, day-to-day business is characterised by pragmatism and realism; decisions are based on facts. Thirdly, managers take time for their employees and do not regard them only as workers but also as people. These principles also apply to the development of employees alongside day-to-day work.

Diversity is a key priority at Arbonia. We promote an inclusive culture in which all employees are treated equally regardless of gender, ethnicity, age, sexual orientation, religion, or other characteristics. Values such as equal opportunities, equal treatment and freedom from discrimination are extremely important to us. Although the labour market is regulated differently in each country, the overarching guidelines of the Group and the divisions apply at all Arbonia locations. 

Employee satisfaction and equal opportunities

An attractive work environment is demonstrated by motivated and satisfied employees. This increases competitiveness and is reflected in a lower gross turnover rate (incl. retirements). In the reporting year, however, this increased slightly from 10.7 % in the previous year to 14.6 %. The duration of employment relationships is also an indication of employee satisfaction. The average period of employment at Arbonia is 12.1 years. In order to live up to Arbonia’s reputation as a fair employer in line with the market and to make changes when necessary, we regularly compare ourselves with other internationally active companies of a similar size.

Balanced compensation structure

Arbonia’s compensation system is based on the conviction that the success of a company depends to a considerable extent on the quality of work and dedication of employees. We want to use our compensation system to attract and retain employees with the necessary skills and qualities and to motivate them to deliver a consistently high level of performance. The compensation system is designed to ensure that the interests of top managers are consistent with the interests of Arbonia and its shareholders.

The two divisions offer additional benefits for the companies that are subject to collective labour agreements in order to ensure attractive compensation beyond the industry-standard pay. These benefits include a programme for obtaining e-bikes and discounted memberships for fitness studios and swimming pools.

In companies that are not subject to collective labour agreements, the compensation for the core workforce is significantly above the legal minimum wage. We ensure that our compensation level is in line with the market by means of agreed principles and internal groupings, as well as regular analysis in collaboration with the employee representatives, taking into account the labour market and developments in
the region.

In developing the compensation structure, we follow common market practices of similarly situated companies that operate on the capital market. A benchmark analysis commissioned in 2020 showed that the compensation of the members of Group Management is of a similar magnitude to that of the two comparison groups. In addition, Arbonia’s salaries are reviewed annually by an external service provider and compensation levels are amended in the event of significant deviations.

On the occasion of each Annual General Meeting, the Board of Directors proposes that the Compensation Report be approved by means of a non-binding consultative voting process. In the reporting year, the Compensation Report was confirmed with a qualified majority. The Compensation Report (see p. 123) of Arbonia presents the compensation governance and the principles of the compensation system of the Board of Directors and Group Management. In addition, it contains information on the compensation of the Board of Directors and Group Management in each financial year, on the roles that the members of the Board of Directors and Group Management exercised at other companies with economic purpose and on the shareholding rights held by the members of the Board of Directors and Group Management.

The Compensation Report has been compiled in accordance with the regulations on compensation at companies whose shares are listed at a stock exchange in the Swiss law that supplements the Swiss Civil Code (Part Five: Code of Obligations) in the fourth section on corporate law and the Directive on Information relating to Corporate Governance (DCG) of 29 June 2022 of the SIX Exchange Regulation.

For the financial year 2023, Arbonia has included a quantitative sustainability target in the variable compensation of Group Management for the first time. This was determined by the Board of Directors at the request of the Nomination and Compensation Committee in the previous year. The aim is to create incentives for efforts towards a more sustainable corporate governance.

Close social partnership

We work constructively with the trade unions in all countries in which we operate. One example of this collaboration was the development of a redundancy programme as part of the plans to close radiator production in Dilsen (BE) in 2023. In Switzerland, the collective labour agreement of the Swiss mechanical, electrical and metalworking industries (Swissmem) is applied at all companies, unless other mandatory collective labour agreements are in effect. Contact with social partners in Switzerland is therefore generally established through this association. Most of the German companies are also subject to collective labour agreements – either via an in-house wage agreement or the regional collective agreement of the trade unions.

The Arbonia Board of Directors approves all important internal frameworks and general agreements. These include the Code of Conduct (see “Compliance and anti-corruption”, p. 86–87), the salary system, management development, collective labour agreements and wage agreements, as well as the strategic guidelines for HR management over all levels down to the local sites. The divisions receive support from the Group in succession planning and management development as well as in recording key performance indicators. In addition, personnel matters are also discussed and addressed across divisions depending on their relevancy.

Employees can see the conditions of the relevant wage agreements on information boards and screens at the production plants or via the Intranet at all times in addition to through communication by the social partners themselves. At the same time, there is no uniform procedure for the entire Group, since the requirements differ according to the company and local regulations. However, regular meetings take place between the management teams at all sites and employee representatives from the trade unions. When an employment relationship is terminated, the divisions have a standardised process.

All of our companies maintain continuous relationships with their stakeholders in order to communicate innovative strength, social commitment and a positive aura externally for the purposes of employee recruitment. Investments in the infrastructure as well as the progressing digitisation create further synergy effects within the Group and thereby provide high efficiency gains. The growing automation of routine activities increases the quality of jobs.

By directly addressing the regional labour market and identifying potential employees early on – for example, within the context of internships – the quality and quantity of the workforce at the respective sites is to be strengthened further. These targets can be reviewed by looking at whether vacancies can be filled and, if so, how quickly. Furthermore, tailored integration management allows employees with health impairments to return to the workplace.