Employee Rights

14. Employment Rights

14. The company reports on how it complies with the employment rights of both nationally and internationally recognized standards and how it promotes employee involvement in sustainability management.

To make sure that employees are able to exercise their rights and participate in FMG, the airport has a works council and further employee committees and employees are granted a number of rights and opportunities. The underlying principles are set out in the German Works Constitution Act (BetrVG) among other things.

The works council is currently made up of 31 members, who are elected every four years (the last elections were held in 2014). It makes sure that wage agreements, statutory requirements and regulations, and the relevant company agreements are adhered to. The latter include important agreements covering corporate health management, addiction prevention, the integration of people with disabilities (or equivalent status), in-house inclusion management, and a variety of working time models. The works council is included in corporate changes at an early stage to make sure that the right solution can be found for both the company and its employees.

Employees’ right to have a say in company issues is protected by FMG’s Supervisory Board, whereby eight of the 16 places are occupied by employees (11 male and 5 female). The company has a Youth and Trainees Council, whose role is to represent the interests of apprentices and which the executive management and works council involves in any questions relating to this area.

The feedback from the employee survey, conducted every two years is used to develop specific measures to improve employee satisfaction.

The Munich Airport Group’s business operations are confined to Germany. Here, human rights are enshrined in law. In calls for tender, we make sure that national and international laws and agreements are applied. This is reaffirmed in legally binding form when contracts are signed.

See also:
"Strengths 2014" - Integrated Annual Report, p. 64–66.

15. Equal Opportunities

15. The company discloses in what way it has implemented national and international processes and what goals it has to promote equal opportunities and diversity, occupational health and safety, the integration of migrants and people with disabilities, fair pay as well as a work-life balance.

FMG offers a wide array of employment options, for employees ranging from unskilled workers to experts to management level. Because acceptance and mutual respect play an important role in this, all managers and employees are aware of and observe the German General Equal Treatment Act (AGG).

98% of all FMG employees are governed by collective pay scale agreements for public sector employees, which set out the framework conditions for employees. This ensures that male and female staff receive equal pay, provided that they perform comparable duties. In addition to their monthly salary, all employees receive regulated supplementary benefits and payments outside of the general pay scale (e.g., annual bonuses, company pensions, canteen and travel subsidies).

With its focus on balancing work and family, FMG offers employees flexible work arrangements, such as flexitime and the ability to work from home. With its “befamily” and “INQA” programs, FMG presents itself as a family-friendly employer. The program’s wide range of options include advisory services, childcare services during vacations, and an in-house, newly-built child daycare center, which was recently expanded.

As a company with an international outlook, Munich Airport benefits from the social diversity of its employees with their different mindsets and cultural backgrounds. Out of a total of 7,861 Group employees, 1,322 originate from more than 50 different countries. This favors a kind of cultural exchange and increases the diversity of expertise within the Group. The promotion of women to management positions is an integral part of HR work. By the end of 2014 20% of the management staff across management levels 1 and 2 were female. The company is aiming to continually increase this percentage over the next few years.

The company’s health management program includes a wide range of sports activities and a number of addiction prevention projects. Occupational health and safety is also enhanced on an ongoing basis. The aim is to ensure and improve safety and health protection for employees, as well as preventing accidents, avoiding work-related health hazards, and implementing findings from the field of ergonomics on how best to organize work.

The Council for Employees with Disabilities is the first point of contact for employees with disabilities and other health-related problems. The works council’s Equality, Family & Career Committee focuses on the issues of equality between male and female employees, parental leave, and older employees.

See also:
"Strengths 2014" - Integrated Annual Report, p. 63–65, p. 68–71.

16. Qualifications

16. The company discloses what goals it has set and what measures it has taken to promote the employability of all employees, i.e. the ability of all employees to participate in the working and professional world, and to adapt it to demographic change.

HR management:
The long-term human resources concept is geared toward the wider corporate strategy, the current business situation, and broader trends within society such as demographic change, diversity, individualization, mobility, health, and education. The human resources strategy sets out important objectives for HR management, which are reviewed annually and
adjusted as required.

Health and social issues:
The Corporate Health and Social Management (BGM) program includes a number of services, including the integration and improvement of occupational medicine, employee catering, and advice on specific scenarios and ergonomics. The area of occupational medicine, covered by the FMG subsidiary MediCare, has been strengthened while a wide range of activities related to company inclusion management and prevention are offered as part of the company health management program. Company sport helps to maintain employability for the long term. The company sports club and the MUCSport sports management program give FMG employees the chance to choose from a wide range of sports activities.
FMG has also created full-time roles in different positions for employees who are no longer able to carry out their current role for health reasons. For example, they can take on roles in the Group’s in-house recycling centers, postal service, or as in-house tradesmen and women.

See also:
"Strengths 2014" - Integrated Annual Report, p. 61–71.

Key Performance Indicators (KPI)

Key Performance Indicator GRI LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender.

Accident statistics
Reportable occupational accidents: 177
Total number of resulting days of absence (calendar days after 1 day): 4,443
Fatal occupational accidents: 0
Rate per 1,000 workers: 24.82

Illness level
Reported occupational illnesses: 7
Illness rate (%): 6.74

See also:
"Strengths 2014" - Integrated Annual Report, p. 171-173.

Key Performance Indicator GRI LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members regarding serious diseases.

Health and wellbeing: In addition to attractive supplementary benefits, FMG employees can also make the most of a number of services to promote personal wellbeing and health. This includes a wide range of options for improving health, such as fitness courses, the company sports club with a wide array of sports, and ergonomics advisory services. Organized for the first time in 2013, the health day for all apprentices designed to promote exercise, healthy nutrition, and relaxation was extended to two days in 2014 to cope with demand.

MediCare: More and more patients are using the services of MediCare Flughafen München Medizinisches Zentrum GmbH (MediCare). MediCare’s emergency facility is on hand to provide 24-hour medical care for passengers, visitors, and employees at the airport. MediCare also offers occupational and air travel-related medical services to all Group employees, as well as any other companies headquartered on the campus. In addition, MediCare runs AirportClinic M, a health care center specializing in orthopedics, gynecology, and urology.

Prevention: Eye tests for employees who work with screens or regular hearing tests for people who work in high noise levels are just two of the preventive measures in place. Safety experts make sure that noise registers are kept up-to-date and maintained at all times. If necessary, they propose measures for noise control.

Key Performance Indicator GRI LA10
Average hours of training per year per employee by gender, and by employee category.

Per male employee: 15.01 hours (Group), 11.00 hours (FMG)
Per female employee: 12.15 hours (Group), 7.26 hours (FMG)
Per manager: 10.59 hours (Group), 8.03 hours (FMG)
Per employee (without management responsibility): 18.09 hours (Group), 10.47 hours (FMG)

Average hours of training per employee (Group): 13.97

See also:
"Strengths 2014" - Integrated Annual Report, p. 173.

Key Performance Indicator GRI LA13
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Total number of employees in Group: 8,591
(Excluding apprentices, workers in minor employment, temporary workers, and interns)

- Age structure of employees:
- Under 30 years: 1,126 (female: 568; proportion as %: 7.48; male: 558; proportion as %: 7.35)
- 30 to 50 years: 4,168 (female: 1,441; proportion as %: 18.97; male: 2,727; proportion as %: 35.91)
- Over 50 years: 2,301 (female: 613; proportion as %: 8.07; male: 1,688; proportion as %: 22.23)

Gender of managers:
- Women: 158; proportion as %: 2.08
- Men: 479; proportion as %: 6.31
Age structure of managers:
- Under 30 years: 28 (proportion as %: 4.40)
- 30 to 50 years: 351 (proportion as %: 55.10)
- Over 50 years: 258 (proportion as %: 40.50)

Disabled employees
Number of employees with limiting disabilities: 634
Employees with severe disabilities: 8.35

German nationals: 6,539 (proportion as %: 83.18)
Foreign nationals: 1,322 (proportion as %: 16.82)

See also:
"Strengths 2014" - Integrated Annual Report, p. 170–174.

Key Performance Indicator GRI HR4
Total number of incidents of discrimination and corrective actions taken.

There were no reported cases of discrimination during the reporting period.

Human Rights

17. Human Rights

17. The company discloses what measures it takes for the supply chain with the aim of ensuring that human rights are respected globally and that forced and child labour as well as all forms of exploitation are prevented.

As a site-based company with a regional supply chain, FMG’s procurement processes are based on national and EU-wide procurement law. Adherence to procurement law is reaffirmed in a legally binding manner every time a contract is taken out. FMG primarily purchases services and goods from companies and contractors in Bavaria (64%) and Germany (98%), both of which are governed by strict legal requirements related to human rights. The company’s Compliance division monitors adherence to competition requirements in purchasing and analyzes purchasing processes.

See also:
"Strengths 2014" - Integrated Annual Report, p. 54, p. 89–112.

Key Performance Indicators (KPI)

Key Performance Indicator GRI HR2
Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening, and actions taken.

Procurement at FMG is governed by the Sector Ordinance, which requires companies to use the EU tendering process depending on the contract value. In calls for tender for individual services, FMG makes sure that national and international laws and agreements are applied. By creating transparency about the procurement processes in the region and by specifying the necessary reaction times, the majority of contracts can be issued to local suppliers: 64% of suppliers are from Bavaria and 98% from Germany.

Around 150 of FMG’s key framework contract partners undergo annual supplier audits in accordance with a variety of criteria, such as product quality or the quality of the service performed.

See also:
"Strengths 2014" - Integrated Annual Report, p. 59.

Corporate Citizenship

18. Corporate Citizenship

18. The company discloses how it contributes to corporate citizenship in the regions in which it conducts its core business activities.

As a site-based company, FMG holds responsibility primarily for the community in the area around the airport.

Because FMG prefers regional and seasonal products, it has a positive effect on value creation in the region. In 2014, 18% of all revenue was generated in Munich and 14% in the surrounding districts. In 2014 FMG alone (not including its subsidiaries) spent 41 million Euros in the Erding, Freising, and Landshut districts and as much as 54.9 million Euros in the City of Munich.
There is a spirit of close collaboration with Tourismusregion Erding e.?V. Munich Airport has been a member of this association since 2012 and is a committed supporter of tourism in the region. During 2014 Munich Airport became involved in the "PRO B15neu" initiative. This is dedicated to ensuring the B15neu federal highway is built in both a speedy and environmentally friendly manner.

The Communities Council has been an important forum for information and dialog between the airport and the surrounding area since as long ago as 2005. Following a suggestion from the Communities Council, FMG shareholders set up a regional fund in 2008 to promote local transportation projects, which aims to support the expansion of regional infrastructure to balance out any negative effects caused by the construction of the third runway. Funding has now also been approved for a road between Berglern and Eitting in the Erding district, as well as the construction of Moosburg’s west bypass, based on a ceiling of 4 million Euros for the latter.

Stretching beyond the region’s boundaries, the airport association is also committed to helping people in need (e.g., transporting urgent goods to Latvia) and FMG also supports its employees in voluntary work to help people in crisis-afflicted areas around the world (e.g., water treatment in east Africa).

See also:
"Strengths 2014" - Integrated Annual Report, p. 51–59.
“A partner for the region – Sponsorship report for Flughafen München GmbH 2011/2014”

Key Performance Indicators (KPI)

Key Performance Indicator GRI EC1
Direct economic value generated and distributed, including revenues, operating costs employee compensation, donations and other community investments, retained earning, and payments to capital providers and governments.

Value generation (in millions of Euros):
Revenue: 1,200,075.00
Other income: 37,205.00
Total revenue: 1,237,280.00
Minus non-personnel expenses: -401,023.00
Minus amortization: -212,206.00
= Value generated: 624,051.00

Value distribution (in millions of Euros):
Employees: 348.4
Lenders (netted): 107.1
Public sector: 55.0
FMG Group: 98.6
= Value distributed: 609.1

See also:
2014 "Strengths 2014" - Integrated Annual Report, p. 114.

Political Influence

19. Political Influence

19. All significant input relating to legislative procedures, all entries in lobby lists, all significant payments of membership fees, all contributions to governments as well as all donations to political parties and politicians should also be disclosed by country in a differentiated way.

Other important stakeholder groups for Munich Airport include government ministries, authorities, politicians, and associations. The “Political Affairs” support office represents the interests of Munich Airport with regard to key issues at both a European and national level and within Bavaria. The focus is on institutions of the European Union, the German Federal Government and Parliament, the Bavarian State Government and Parliament, and Munich City Council. In addition to the efforts to maintain continuous contact, there are also regular events in Brussels, Berlin, and Munich. Flughafen München GmbH also publishes a policy brief two to three times a year, which refers to current issues and contains background information about the airport.
The company also works closely with the relevant industry associations and initiatives, such as the German Airports Association (ADV), the German Aviation Association (BDL), and the Airport Council International (ACI) Europe.

FMG is listed in the EU’s transparency register.

As a matter of principle, FMG does not make any financial contributions of any kind to politicians, political parties, or institutions associated with these.

Various sources and processes are used to identify significant themes. A key tool used by Munich Airport is the Group-wide materiality analysis. The aim of the analysis is to derive the most important issues for the purpose of Strategic Sustainability Management and integrated reporting. This provides the basis for the Executive Board to set the central parameters for sustainable development.

See also:
2014 "Strengths 2014" - Integrated Annual Report, p. 168–181.
Policy brief download
Entry in the EU transparency register

Key Performance Indicators (KPI)

Key Performance Indicator GRI SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

FMG does not make any financial contributions of any kind to politicians, political parties, or institutions associated with these.


20. Conduct that Complies with the Law and Policy

20. The company discloses which measures, standards, systems and processes are in place to prevent unlawful conduct and, in particular, corruption, and how they are verified. The company depicts how corruption and other contraventions in the company are prevented and exposed and what sanctions are imposed.

The compliance management system is in place to ensure adherence to the laws, statutory requirements, and official regulations that are relevant to FMG. It includes the compliance risk analysis, organization, guidelines, measures, monitoring, and reporting. The compliance guidelines form the basis for all Group directives, procedural instructions, and codes of conduct. The Compliance corporate department in the Legal and Compliance corporate division reports directly to the Executive Board and the Supervisory Board. The concept was successfully tested under IDW PS 980 in 2012.

FMG’s compliance officer acts as a contact partner for any employees who wish to report unlawful or unethical behavior. Complaints can be reported in person, by telephone, in writing, by email, or online using the BKMS® whistle-blower system. They can also be submitted anonymously.

Purchasing is required in particular to adhere to competition requirements and prevent maverick buying (procurement from outside of the standardized procurement channels). FMG applies the dual-control principle from the opening of the tender process to the invoice approval stage. The annual supplier assessment acts as an additional tool for quality control.

See also:
2014 "Strengths 2014" - Integrated Annual Report, p. 91–92.

Key Performance Indicators (KPI)

Key Performance Indicator GRI SO2
Percentage and total number of business units analyzed for risks related to corruption.

FMG’s code of conduct contains corporate policies on legally-compliant and ethical behavior for employees and managers. It is published on the Intranet and contains regulations on dealing with gifts/financial contributions, granting benefits to third parties, carrying out secondary jobs, and awarding contracts. It also contains references to the observance of further guidelines. The purpose of these rules is to ensure that proper procedures are followed in connection with procurement and the awarding and handling of contracts.

Employees and all managers are regularly made aware of the guidelines and any updates or amendments to them. A web-based training course on compliance has been offered to all employees since 2015 as part of the Group-wide training program.

The position of anti-corruption officer is exercised by the head of the Compliance department.

The anti-corruption officer reports that no complaints of corruption were known to FMG or its subsidiaries in 2014. One complaint from outside the company of misconduct in the contract awarding process was lodged and investigated but the accusation was not confirmed.

Key Performance Indicator GRI SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

There were no complaints related to anti-competitive behavior, anti-trust, or the formation of monopolies in 2014.

Key Performance Indicator GRI SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

At the time of publication, there were no known instances of fines for non-compliance with laws and regulations concerning the provision and use of products and services.