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1 Beiträge aus der Forschung Rapports reports volume 157 Rainer Lichte, Wilfried Kruse Rail-Employ Employability in the railway environment Annex: Case studies Dortmund, Juni 2007

2 Ein Projekt der Arbeitsgruppe Employability des Ausschusses für den Europäischen Sozialen Dialog Eisenbahn, gefördert von der Europäischen Kommission Impressum: Beiträge aus der Forschung, Band 157 ISSN: / (Auflage: 200) Layout: Sozialforschungsstelle Dortmund (sfs) Zentrale wissenschaftliche Einrichtung der Universität Dortmund Evinger Platz 17 D Dortmund Tel.: +49 (0) Fax: +49 (0)

3 Cover sheet Rail-Employ : - Employability in the railway environment Research reports, vol. 157 Annex: Case studies Authors: Rainer Lichte, Wilfried Kruse Dortmund, May 2007 A project of the Employability working group of the committee for the European social dialogue on railways, supported by the European Commission

4 Contents: A. Case study Czech Republic (CZ): České dráhy, a.s.: CD 1. Overview 2. Extracts from presentations 2.1 Czech Railways Development 2.2 CD HR Policy: Mojmír Bakalář und Pavel Koucký 2.3 Psychological service centre Czech railways general management, Pavlína Králová 2.4 Subsidiary Transport Training Institute, Zdanek Janícek B. Case study Germany (D): Deutsche Bahn AG: DB 1. Overview 2. Extracts from presentations/studies 2.1 Beschäftigungsfähigkeit im Eisenbahnbetrieb Versuch einer Typologie berufsbezogener Gefährdungen im Eisenbahnbetrieb Christian Gravert 2.2 Presentation: Standardchartsatz Projekt JobService 2.3 Auszüge aus Studie Fallstudie als Transfermethode, Lebenslanges Lernen und beschäftigungsorientierte Unternehmensstrategien für Flexicurity im Betrieb, Daniel Tech C. Case study France (F): Société nationale des chemins de fer français (SNCF) 1. Overview 2. Extracts from presentations 2.1 La prévention des risques à la SNCF : Michel Feret 2.2 La sécurité du personnel 2.3 Politique en faveur de l emploi des travailleurs handicapés : Catherine Hingrez 2.4 La politique de la SNCF pour le développement des compétences et des qualifications tout au long de la vie : Marie-Dominique Bidault D. Case study Hungary (HU): Magyar Allamvasutak Rt. MAV 1. Overview 2. Extracts from presentations 2.1. Ungarische Staatsbahnen AG, Ákos Érsek 2.2. Beschäftigungspolitik und Chancengleichheit 2006, Menyhártné dr. Zsiros Mária E. Case study Netherlands (NL): Nederlandse Spoorwegen (NS) 1. Overview 2. Extracts from presentations 2.2 Leerweg Hc flexibel en persoonlijk, Hans Raamsdonk 2.3 Stichting Railinfra Opleidingen 2.4 Projekt Rail-Employ Het Spoor Meester, Jelle van Luipen, Piet Schouwerwou F. Case study Latvia (LT): VAS Latvjas Dzelzcels (LDz) 1. Overview 2. Extracts from presentations 2.1 Experiences of social partners with the integration into the European Union, Brigita Abika

5 INTRODUCTION These case studies were undertaken as part of the Rail-Employ : employability in the railway environment project. First drafts of the texts were prepared by sfs research staff, Wilfried Kruse and Rainer Lichte, and submitted initially to the companies and trade unions involved so that they could draw attention to any factual inaccuracies. Not all companies made use of the feedback opportunity. The texts then served as a basis for the project team s discussions and are now being made available to the interested public at large. Members of the project team: Employer representatives Jensen, Erling, SNCF, Paris (Martinez, A.G. RENFE, Madrid) Mette, Olaf, DB, Frankfurt/Main Preumont, Jean Paul, CER, Brussels Trade union representatives Dalne, Dominique, CSC-TRANSCOM, Brussels Joncret, Christian, CGT, Paris Marzola, Maria Christina, FILT-CGIL, Venice Tamás, Erika, VDSzSz, Budapest Essentially, the information for our analysis is drawn from two sources: 1. (Annual) reports of industry associations and companies, EU publications, and studies and statistics on the sector, especially: CER (ed.): Reforming Europe's Railways - An Assessment of Progress (published in German as: Eisenbahnreformen in Europa - Eine Standortbestimmung), Brussels 2005 European Industrial Relations Observatory (EIRO) reports on the rail sector from the Dublin Foundation, 2005 and 2006 Statistics and data from Eurostat Richard Latten, Jahrbuch Europäische Eisenbahnen (European railways yearbook, German publication) 2005, Berlin 2. Presentations and discussions at the workshops held on our visits to railway companies and their trade unions. Whilst the content of these workshops was planned according to a standard format, their emphasis was effectively determined by the companies and trade unions and depended on their selections of themes and experts. Unfortunately, the case studies we planned in Lithuania and Latvia did not take place although we would like to have included one of the smaller railway companies from a new EU member state in our sample. For Latvia we were at least able to produce a brief case study, following talks that took place on our preliminary visit. The project team expresses its thanks to all participants at the workshops for their open and productive discussions, to the organisers in each host location, and to the speakers from companies and trade unions for taking on the preparation and running of the workshops. Rainer Lichte on behalf of the project team

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9 CD Case Study Rail-Employ : - employability in the railway environment A project of the Employability working group of the committee for the European social dialogue on railways, conducted by: Landesinstitut Sozialforschungsstelle Dortmund (Dortmund state institute for social research, sfs) in partnership with Community of European Railways and Infrastructure Companies, Brussels, (CER) and European Transport Workers Federation, Brussels, (ETF) Supported by the Directorate General Employment of the European Commission. Case study materials Czech Republic (CZ): České dráhy, a.s.: CD Key data Area 78.9 thousand km 2 Inhabitants 10.2 million Rail network of which electrified Modal share of passenger transport 7.3 % 9,501 km 2,943 km = 31% Density: 120 m/ km 2: (ranked 1 st in EU) Person kilometres 6,483 million person-kilometres Falling since 2000 (7,266) Modal share of freight transport Number of competitors 42 15,900 million freight tonnekilometres 24.7 % Reform process 1988 Managed independently of the state 1993 Founding of the Czech Republic Economic management separated from the state Special law to establish Czech Railways as a state organisation (CD); objective: to separate commercial decisions from the state day strike Against the company s independence from the state; Result: greater staff participation law in Transfer Act No. 77 CD becomes a 100% state-owned joint stock company; similar structure to SNCF/RFF (^=CD/SZDC) Structure of CD SZDC The state as shareholder forms a Steering Committee composed of representatives of different ministries. This body nominates six members of the Supervisory Board, three are elected by staff; the Supervisory Board appoints five Directors (Board of Directors). Railway Infrastructure Administration; state organisation according to Act 77/2002; It hands over the performance of necessary works on the CD infrastructure; usual contract term 3 years; CD carries out repairs and maintenance through its own technical divisions, extension is carried out by external contractors Employees today (October 2005) CD 162,504 excl. Slovakia 116,142 86,379 65,762, further reduction by 6,000 to 8,000 planned (EIRO, 2003: 78,575) Page 1

10 CD Case Study Other railways Trade unions Six trade unions OSZ (Union association of railway workers) FS (Engine drivers federation of the Czech Republic) Mandatory consensus to conclude a collective agreement (company agreement for CD, usual term: one year) Approx. 60% of the total CD workforce is organised in the OSZ Approx % of CD staff are organised in the FS Four smaller trade unions e.g. the Federation of Train Crews (Federace Vlakových CET, FVC) founded in 1991 for ticket inspectors, chief guards and other professional workers (EIRO, 2005) Non-organised employees Approx. 22 % (EIRO,2005: extent of organisation: 65 %) One of the framework conditions for the company is transport policy (meaning transport provision to meet public demand, both on a national basis and in the regions), which is regulated by tripartite bodies composed of representatives of the state, employers and trade unions. CD (České dráhy, a.s.) is undergoing a comprehensive reorganisation process on (almost) all levels; at company level, in the individual sections of the Human Resources department (and probably other areas besides). The current priority tasks within the company are: separation of responsibility for the rail network from operational responsibility, and completion of a major investment programme. Framework conditions for human resources policy (HR policy) In addition to EU directives, HR policy is determined by three influences: National labour legislation (apparently it is commonplace for detailed regulations to take precedence over collective agreement regulations), Industrial relations practice in companies Collective agreements: collective agreements, generally for a one-year term (allowing a fast pace of innovation) are to be negotiated by collective bargaining between trade unions and CD management, and to be respected; each individual union carries equal weight and must give its approval: sometimes hard bargains must be driven! The outcome is then known as the company collective agreement ( Podniková kolektivní smlouva ). HR concepts are guided by EU directives (CD cooperates closely with RENFE in order to learn from its experience), by national legislation and by internal management resolutions. The forthcoming tasks are defined in Strategy 2008: Making savings on staff costs, Increasing work productivity, Adjusting and enhancing resources, Page 2

11 CD Case Study Extending the network on the basis of the mandate agreement with the government The main problems of HR policy: Development and organisation of human resources in all segments Optimising the number, age profile and career structure of employees Enhancing employee qualifications Despite a substantial reduction in staffing levels in the recent past, there is still substantial overstaffing. Adjustment of employee numbers is necessary to achieve better productivity. In the view of the trade unions, this does not apply across the board. In some areas they already see critical levels of understaffing. So far, staffing has been reduced in full-time equivalents: by approx. 56.6% of the 1993 workforce level (116,142) to 65,762 by October 2005, or expressed another way: by 50,380 employees over the last twelve years, an average of 4,200 per year without major social disruption. There is consensus that the only way to pull off such a feat is in communication with the unions. Overall the social dialogue is conducted in a good atmosphere. There have been no strikes in five-and-a-half years. A contributory factor is certainly that in addition to the many discussions in connection with collective agreements employer and workforce representatives convene once a month at a works council executive committee meeting, where important decisions of mutual interest are negotiated. Nevertheless, there are of course divergent views regarding the actual steps taken by the company. As a consequence of the consistent workforce reductions over a twelve-year period of minus 3.6% per annum (baseline: 1993 staffing level) the unions note that low staffing coverage is already giving rise to security risks and impairing performance in certain areas. The constant reduction in employee numbers entails two undesirable consequences: there is barely any recruitment of young qualified employees which is nevertheless a necessity, despite the ongoing staffing reductions and negative development of the workforce age structure. Due to the decline in the volumes of freight and passenger transport and the resulting overstaffing (1/3 of services have been cut, new technologies enable fewer staff to do the same work, etc.) a massive reduction in the number of engine drivers was necessary. Redundancies in this occupational group were unavoidable. On the other hand, there was previously a shortage of train controllers. Engine drivers are already an over-mature group. CD currently employs approx. 6,700 engine drivers. As of October ,658 of this number were in the year-old age group and 10 were actually over the age of 59. The trade union is therefore demanding a Page 3

12 CD Case Study slowdown in staff reductions together with expanded and improved initial vocational training for young engine drivers within the next 10 years. The statutory pension age for men in CZ is currently 61.5 years. Retirement age is being raised continually and will be 62 years for men in the year Five years before statutory retirement, there is an option for railway workers to leave their railway jobs and enter the railway s internal ancillary social programme. They receive a severance payment amounting to tens of thousands CZK (CZK 1000 ~ 35.50) depending on the time remaining until their statutory retirement date. It is a matter of voluntary choice for the individuals concerned whether or not they take up this programme. Those who leave can either seek alternative employment themselves (but not with CD) or register with the employment service as an applicant for a suitable job. Those who are registered unemployed receive monthly financial assistance from the state. For non-railway employees, the applicable statutory regulation in CZ stipulates that regular pension benefits can be drawn from three years before the statutory retirement date, but at a reduced amount depending on how many years early the employee has retired. The level of the pension and state unemployment benefits are in line with the cost of living in CZ. Conclusions for the development and regulation of HR policy For this purpose, a complex and ambitious programme has been set up. It makes reference to ten fundamental segments which will be worked through gradually 1 : 1. A strategy for the regulation of HR and development of a new corporate culture, 2. Planning of jobs/workload planning, 3. Attracting and integrating new, competent members of staff, 4. Planned staffing of jobs, career planning, 5. New evaluation, motivation and remuneration systems for staff, 6. Initial vocational training and continuing education and training, 7. Organisational development, 8. Social programmes and services, 9. Computerised systems for the administration of staffing issues, 10. Development of company-internal and international relationships. Next steps (projects in progress): The priority is seen as realigning the corporate culture with the new requirements of the market, and leading employees towards a stable basis of positive identification with the company. 1 Explanatory notes on this can be found in the Annex Page 4

13 CD Case Study A new system for motivation and payment will also contribute to this objective. The previous, conservative remuneration system does not take sufficient account of the stressful aspects of the work and has few if any performance criteria or variable elements of pay based on business profit. In other words, it is inadequate as a motivational incentive. The system must ensure that compliance with general regulations and rules on health and safety at work is a matter of routine, and not used to justify any special bonuses. The same applies to staff compliance and performance in respect of tasks relating to safe operation of the railways and passenger safety. The development of employability should be taken into account more prominently in future, and to some extent this is already the case. Even now, staff who fulfil multiple responsibilities and skills are better remunerated and are consequently grouped in higher salary brackets. Such motivation systems meet with resistance from the trade unions, however if agreement cannot be reached, the only way out may be to shift certain functions outside of the CD corporate structure. Considerations on improving continuing education and training: Continuing education and training at CD relies on a three-pronged approach: - the lector/mentor in the training centre, - e-learning, which enables employees to access training content when they are away from the training centres, - workplace-based learning (on-the-job learning). This kind of learning has been very much neglected so far. The main reason is that managers maintain quite a distance from their staff. Overcoming this distance is a key objective of the new corporate culture. All in all, it is necessary to raise the qualifications for entry to major occupational groups. For instance, a university entrance qualification will be required in order to train as an engine driver. Explanatory note: After a 9-year period of compulsory schooling in primary school, young people in CZ go on to an apprenticeship or attend one of a variety of state advanced technical schools (commerce, chemistry, mechanical engineering, electrical engineering, etc.) or state grammar schools. Pupils spend four years in education or training at these advanced schools, at the end of which they take the school-leaving/university entrance examination. After passing this examination successfully, whether at one of the technical schools or at the grammar schools, the most able school-leavers can go on to study at a university or other institution of higher education. Future young engine drivers will have completed their education at an advanced technical school for mechanical engineering or electrical engineering. They will hold either a university entrance qualification or as is standard practice in other countries a skilled-worker (or journeyman) certificate. After joining CD, they are Page 5

14 CD Case Study prepared for their assigned duties by means of practical exercises, training and courses of instruction, education on railway regulations and final subject examinations. Corporate employment policy Where a delta exists between staffing needs and current staffing levels, the company tries to organise a managed fluctuation. CD is one of the few companies in CZ which complies with the employment law stipulations of national legislation. But beyond this, CD also carries out: active employment policy, mainly self-funded since there are few other financing options in CZ. Internal vacancies are advertised along with the necessary training programme for the job. This training frequently takes place in cooperation with the vocational schools e.g. engine driver retraining to make the transition from diesel to electric vehicles, CD subscribes to the principle that retraining good staff is better than recruiting new workers from the labour market. For the Prague region there is a particular problem: unemployment is very low, making recruitment for manual occupations difficult. Therefore CD also maintains staff hostels to attract potential employees from the surrounding area to work at CD. In respect of the projects described above, the following decisions have already been made: Setting up regional HR centres for more intensive support of staff Setting up two psychological centres, whose professional services can also be marketed to external companies. Before taking up a position as a train controller, fire fighter, rescue worker or locomotive driver (i.e. jobs with safety implications), staff are examined to establish their psychological fitness. The PsychoSoft system is used along with American questionnaires and an in-house questionnaire for railway occupations. Following these tests, staff are interviewed on their work history and career plans, but also their hobbies, to gain the most comprehensive possible profile of the applicants capabilities. The examination takes around four hours in total. The psychological examination is a prerequisite for employment in any of the roles listed above. Generally, employees in these jobs are re-examined every five years or after an accident to ensure their continuing fitness. To improve qualification standards, on the Transport Training Institute, CD s central training centre, was opened. It is operated as an independent company (a subsidiary of CD) in an easily accessible location; its first activity will be systematic training for middle management. It will also be the training centre for engine drivers. This establishment also organises other services of a broader Page 6

15 CD Case Study nature, e.g. there are plans to investigate the phenomenon of microsleep in cooperation with universities. The organisational solution chosen in the cases mentioned above is commonly used for addressing new or restructured tasks: an independent subsidiary of CD is established for the specific purpose; otherwise services are bought in from existing market providers. Summarising assessment The company is still in the midst of its transformation, and has set out ambitious plans (see 10 Segments in the Annex). Whereas appointment to the important top-management positions is obviously partly governed by the candidates political leanings which has led to a high level of fluctuation at the top level in the recent past the trade unions also have a say in the appointment of the Head of HR, and it is one of the more stable positions. To that extent, the preconditions for development of the employability concept in this company are comparatively good, and clear points of relevance can be found in the 10 Segments. More staff with broader basic qualifications will be taken on, continuing education and training will apparently be directed more towards broader occupational fields, specialised roles will be replaced with job rotation, and a planned career progression at CD will be introduced for every employee. The main element of doubt is the realisation that the company is still facing massive problems, begging the question of how the complex HR strategy can be put into practice systematically and effectively in the face of these challenges. The presentation at the workshop in Prague conveyed a strong sense of the efforts being made to bring about innovations in the field of training (with a priority on middle management). Yet accompanying measures to reinforce the results of continuing education and training (new corporate culture, improved motivation, organisational change) seemed less clearly defined. Page 7

16 CD Case Study Annex: Ten segments in the regulation of Human Resources at CD Extract from the presentation given by Mr Bakalar, Director of HR at CD, at the Rail-Employ Workshop on November 28 in Prague 1. Strategy for regulating human resources at CD Mission and vision for regulating human resources Goals and strategies Corporate culture at CD Staff s acknowledged values and code of conduct 2. Planning of jobs/workload planning Need analysis with reference to the number, structure and quality of staff (e.g. from the viewpoint of strategic objectives, occupations, age, individual potential) Marketing in the labour market New job descriptions and new definitions of terminology, stipulation of requirements and criteria for fulfilling them Completion of the annual and medium-range staffing needs plan 3. Attracting and upgrading staff Attracting new staff Application, selection and advertising procedures Upgrading programmes (labour and social law) Involvement of advanced technical schools and universities 4. Staffing of jobs, career planning, Evaluation of staff potential (with assistance from the Psychological Service assessment centres) Certification processes, railway-internal audit Career paths and models for staff development Staff rotation Proposals for staffing changes Systems for job reductions 5. Evaluation, motivation and remuneration systems for staff Systems for evaluating performance and professional conduct of staff Systems for improving motivation Systems for financial and non-financial remuneration, including universal, rolespecific and elective benefits 6. Preparation and training at CD Development and quality improvement of training systems Production of training programmes including updating of existing training measures (obligatory and special) Continuing education and training of certain staff groups by occupation and organisational unit, vertically by product (lines) and horizontally by activities. Continuing education and training for the organs and members of CD subsidiaries 7. Organisational development Analysis of the needs of vertical products (product lines) and horizontal activities Preparation and fostering of changes in processes and steering systems, including changes to the organisational structure Proposals for social packages in association with these changes Promotion of quality control, TQM 8. Social programmes and services Health, occupational safety, working conditions Social services for staff, use of the social fund and discounted travel Support for CD pensioners Analyses of the social climate and staff satisfaction Page 8

17 CD Case Study Social programmes Legal, psychological and financial advice and services 9. Human Resources administration and information system Human resources agendas Information system, staff records Strategic information system for the Human Resources policy Competence management (knowledge management) for staff Development of information and communications technologies (ICT) for the regulation of human resources 10. Internal and external relationships Liaison with the EU and transnational organisations and with central and regional authorities in the Czech Republic Complaints bodies and conflict resolution mechanisms (ombudsman) Negotiations with trade unions, collective agreement Internal and external public relations addressing the regulation of Human Resources Ensuring the CD holding company s internal and external communications Courtesy of Verner, HR Department at CD Page 9

18 C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y CZECH RAILWAYS, JOINT STOCK COMPANY Czech Railways Development Rail-Employ Praha November Czech Railways, joint stock company C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y o Established on 1 January 2003 according to the Act No. 77/2002 Coll. as one of the successors of former Czech Railways, state organization o National railway operator in the Czech Republic o Legal form joint stock company (owned by 100% by the State) o Rail transport market in the Czech Republic established in 1 January 1995 (according to Act No. 266/1994 Coll.) o Separation of transport services and infrastructure management (according to the Directive 2001/12/EC) Rail-Employ Praha November

19 Business activities C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y o Transport services Freight transport Long-distance passenger transport Regional passenger transport o Operating the railway infrastructure as a public service (based on a contract with the Railway Infrastructure Administration) Ensuring operation of the infrastructure Ensuring operability of the infrastructure o Business and other activities (related to the above-mentioned ones) Rail-Employ Praha November Czech Railways within transport policy I o The national freight transport market is fully liberalized (the Czech Republic did not settle a C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y postponement in this field while entering the RU compared to Poland and Hungary) o Czech Railways is one of the operators on this market being the national railway operator o The transport policy of the Czech Republic is oriented on a partial transfer of goods traffic from the road to the rail practical steps are needed for realization however Rail-Employ Praha November

20 C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y Czech Railways within transport opolicy The overwhelming II majority of outputs in passenger transport is being realized based on a public service obligation o The State acts as customer ordering transport with a long-distance character, in case of regional transport it is the region territorially responsible o A contract is being concluded for outputs for a oneyear period o The customers try to contact more subjects as a pilot project, among which they want to choose Rail-Employ Praha November Commercial policy of Czech Railways Freight transport o Grasping perspective traffic Combined transport Block trains Consignments with a higher added value C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y o Complex services for the customer creating competitive products Implementing logistics Forwarding services o The possibility of establishing a subsidiary ČD Cargo, joint stock company possible entry of a strategic partner o Participation in strategic supra-national groupings Rail-Employ Praha November

21 Commercial policy of Czech Railways Passenger transport o Long-distance passenger transport Orientation on quality of provided services Offering a backbone system of public transport in the Czech Republic Offering a quality connection between important European centers (using units Series 680) C Z E C H R A I L W A Y S, J O I N T S T O C K C O M P A N Y o Regional passenger transport Creating regional integrated systems A complex solution of regional services (based on an integrated regional railway undertaking) Cooperation with other strategic partners operators rolling stock producers Rail-Employ Praha November

22 HR policy Rail-Employ Workshop Prague 2005 Mojmír Bakalář Praha Prague 28th and 29th November České dráhy, a.s., HR policy Rail-Employ Workshop Prague 2005 Content: legislation main strategic goals and its structure HR scheme steps to reach the strategic goals next steps Prague 28th and 29th November České dráhy, a.s.,

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