Workforce and its breakdown
The DELTA PLUS GROUP’s total workforce was 1,897 persons at the end of 2017.
Broken down by geographical area, barely one-fifth of the DELTA PLUS GROUP’s workforce is in Europe, whereas more than half of our workforce is mobilized in our subsidiaries based in Asia. One-third of the Group’s workforce is in the Middle East and America.
More specifically, this workforce is highly concentrated in six countries among the twenty-five in which the DELTA PLUS Group has established subsidiaries – i.e. France (historic country of the DELTA PLUS GROUP), the United Arab Emirates, Argentina, Brazil, India and China.
ASPRESEG, acquired in December of 2016, as well as the companies of the VERTIC Group and DELTA PLUS CENTROAMERICA, which became members of the Group in January of 2017, fall within the scope of consolidation, with their workforce representing approximately 8% of the Group’s total workforce.
Breakdown of employees by ageAs the monitoring of a breakdown of employees by age does not have any particular interest for the DELTA PLUS Group, it was decided not to give a precise indicator in that regard.
Hirings and dismissals
Regarding hirings and departures in 2017, we see that the Group’s total workforce at the end of the year has increased from 1,684 to 1,897 employees. The entry into the Group of new subsidiaries and their employees in 2017 is the major explanation for this increase in the workforce over that of the preceding year.
One also notes an increase in the workforce of the production companies established in Argentina and Brazil, which, at a constant rate, translates into a 3.5% increase in the Group’s workforce, due mainly to these two subsidiaries. There have been few movements in the other subsidiaries’ workforce.
Our employment policy gives priority to the hiring of personnel of local nationality. Local labour law is scrupulously complied with.
The departures in 2017 are related mainly to organizational reconfigurations in the production subsidiaries in Argentina and Brazil, and in the newly integrated subsidiaries. China had a larger “turnover”, which was due mainly to a strong labour market. One may also note the major impact of the Chinese New Year, which is a period during which employees terminate their contracts and return after the holidays to be rehired. In 2017, 97% of the workforce re-entered our Chinese subsidiaries after this holiday period. This significant rate of return shows that our Chinese employees are satisfied with the working conditions at DELTA PLUS. This rate has improved considerably in the last few years after economic changes and the implementation of good policies for the management of human resources.
Wages and their evolution
The DELTA PLUS GROUP’s companies comply with any local provisions that may exist regarding the legal minimum wage.
The wage increases in certain geographical areas outside of Europe are correlated with the increase in the inflation rates, which is often significant. Consequently, the percentages of increase in these areas are not readily comparable with those applied in Europe.
Regarding the minimum wage applicable to employees based in France, we have adopted an “internal minimum wage” called the “Delta minimum wage”, which exceeds the official minimum wage by approximately 10%. We ensure that each newly hired employee is paid at least the “Delta minimum wage”, which is revalued if the difference with the official minimum wage falls below 7%.
The evolution of the wages of all of the Group’s employees is related mainly to their performance, and obviously depends on their length of service. Each employee’s results are assessed annually, on the basis of objectives set by his manager at an annual meeting with the employee.
The DELTA PLUS GROUP has implemented a standardized procedure since 2016 for the organization of Annual Assessment Meetings (“AAM”) with employees of the Group in its various subsidiaries. At these meetings, the employees’ direct contribution is identified by taking into consideration each employee’s actions in the context of the particular circumstances; and the progress made by the employee with respect to his/her performance, skills, or even his/her behaviour and attitudes at work is assessed. Also, these meetings enable us to determine any needs for training in order to increase our employees’ skills and employability so as to keep our business competitive. As our Group is comprised of numerous subsidiaries, we need to know and understand our employees. With this procedure, we get to know the desires of each employee with respect to geographical and functional mobility, which enables us to envisage possible crossover points by taking our teams’ desires into account.
In France, pursuant to the provisions of the French Labour Code, the profit-sharing agreement and the incentive agreement in the Group’s French companies (voluntarily concluded at the management’s initiative) continue on course. No such mechanism exists in the subsidiaries established outside of France.