Performance-related pay at KHS
Following intensive discussions a works agreement about the introduction of a new pay system was concluded by the Executive Management Board and Works Council in June 2006. The framework pay agreement came into force at all KHS GmbH plants in Germany on January 1, 2007. The agreement includes for example:
- Special pay scale grouping and complaints procedure
- Common performance appraisal for all staff
- Abolition of the traditional distinction between blue and white collar workers.
Pay scale grouping for all staff was performed by a committee comprising an equal representation of members. IG-Metall Dortmund, a local branch of the German metal workers union, described the introduction of the framework pay agreement at KHS as "exemplary".