LETTER TO EMPLOYEES
Dear colleagues
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We wish to speak to you at a point in time that is both
revolutionary and extremely important for the Š
KODA
brand and for the Volkswagen Group as a whole.
The automotive industry is going through a
substantial transformation, and to withstand this
change, there are high demands on all teams
from all units of the company. A pathway to hav‑
ing cars without combustion engines is also hin‑
dered by European legislation changes and regula‑
tory measures, and we need to incur high expenses
for research, development and the production of
new products. We are also investing in infrastruc‑
ture connected to the electric mobility, digitisation
and data connection of our cars. Without these sig‑
nificant investments, the future of ŠKODA AUTO
would be compromised. We are approaching the
necessary changes and measures responsibly in or‑
der to ensure work positions and the corresponding
remuneration for the ŠKODA brand and for you, the
company’s employees, in the long term.
Last year was extremely demanding in many re‑
spects. Although the revenues and sales went up,
the operational profit decreased. The main reason
for this is the adverse movement of exchange rates,
negative influences related to transition to a new
system for testing WLTP emissions, growth in per‑
sonnel expenses and investments in the develop‑
ment of new products. The company’s profit is one
of the basic inputs to calculate the variable of bo‑
nuses given to employees together with the sala‑
ry for the month of April, which is paid out in May.
Furthermore, the calculation uses the results of tar‑
iff negotiations from the prior period. Thanks to last
year’s results of tariff negotiations, the variable bo‑
nus amount for 2018 will be slightly higher than last
year, even though the company’s profit decreased.
This is surely great news for all the employees who
deserve the remuneration for their hard and respon‑
sible work in 2018. The ŠKODA AUTO Board would
like to express its gratitude and say a big thank you
to everyone for their work performance. The varia‑
ble of bonus for employees with full entitlement will
be CZK 61,000 after rounding. During the tariff ne‑
gotiations, a one-off bonus of CZK 4,000 was agreed
upon and will be paid out on the same day as the
variable bonus. The full amount of both parts com‑
bined will be CZK 65,000.
It is necessary to add that, in the current situa‑
tion, and given the outlook for next year, it is clear
that we will not be able to repeat the result of last
year’s tariff negotiations. Conversely, we will need
to look for ways to achieve long-term sustainability,
competitiveness and higher flexibility of the ŠKODA
brand on the market, as well as ways to quickly ad‑
just to the new demands of customers. Only this
way will we be able to enjoy the company’s good re‑
sults and interesting amounts of the variable bonus.
We firmly believe that we will, together with our
social partner the KOVO Trade Unions, find balance
in our constructive and fair negotiations that will
be acceptable from the employees’ perspectives, as
well as economically sustainable long-term stabili‑
ty for the whole company. In this respect, we would
like to ask you for understanding and support so
that the ŠKODA brand can withstand the dramat‑
ic changes in the automotive industry and maintain
its position as a respected employer in our country.
Yours sincerely
Bernhard Maier
Bohdan Wojnar
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OLLECTIVE NEGOTIATIONS ENDED ON
22 MARCH 2019, AND ALL AGREEMENTS
RESULTING FROM THEM WILL BE
PRESENTED IN THE APRIL ISSUE OF
ŠKODA MOBIL IN THE COLLECTIVE
AGREEMENT STIPULATIONS SUPPLEMENT.
MARCH 2019 ŠKODA MOBIL 3