5.1 Working at Siemens According to the collective bargaining agreements in Ger- testimony of our unwavering commitment to fair pay for our many, the pay system at Siemens is determined by collective people. In fiscal 2023 we reviewed our 19 largest companies 2 bargaining negotiations between the trade union “IG Metall” in different countries (selected by revenue) on the basis of our and employers’ associations. 79% of our employees in Ger- defined, market-based pay parity methodology. We are many are covered by collective bargaining agreements, an working with these companies to establish a long-term additional 19% of our employees in Germany are covered by cultural change that supports our pay parity ambitions. collective agreements subject to codetermination by the Works Council, and our senior managers (2% of employees Employee benefits and opportunities for today in Germany) are represented by the “Executive staff committee.” and tomorrow In an ever-changing world, we continuously review and Social dialog and relationship management modernize employee benefits. We offer flexible benefits Enabling a safe dialog between Siemens and our employee programs that support our people’s physical, mental, finan- representatives is important for building trust with our peo- cial, career, and social well-being throughout their work-life ple. The following employee representative bodies are journey. With equity and inclusion in mind, the Siemens established at Siemens: benefits programs2 aim to empower our people to realize their full potential and strengthen their resilience through a → The Siemens Group Works Council, Central Works Council, variety of benefits programs, insurance policies, retirement local Works Councils, and other employee representative arrangements, and elective coverage. With an eye on sus- bodies represent all employees at Siemens in Germany – tainability as well as the diverse and evolving needs of our also disabled people and young workers. global team and their families, the external market is closely → Our Siemens Europe Committee (SEC) comprises 37 rep- monitored for the latest industry trends and innovations. resentatives from 23 countries. The SEC represents all our SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENT people in the EU countries and the UK, Switzerland, and REPORT, PENSIONS Norway. In addition to three regional meetings, the annual SEC meeting with all SEC members, representatives of the Eligibility for Siemens sponsored benefits such as share company, and our CPSO took place in fiscal 2023. plans, company pension scheme, the employee benefits → In fiscal 2023, Siemens also held meetings with employee programs, and parental/family leave regulations varies by representatives and unions in non-EU countries. country. Country-specific plans generally follow local regula- tions and market practices. Commitment to fair pay We want to guarantee fair pay (coverage of basic needs) that Work-life balance at least conforms to the national statutory minimum wage. To provide our people with even more flexibility and individ- Subject to national regulations, Siemens adheres to the ual solutions, we offer flexible working models. These models principle of “equal pay for equal work”: for instance, equity are structured according to local requirements and in ways in wages for women and men with the same job profile or role. that are compatible with the employees’ roles. For instance, Siemens offers mobile working, part-time hours, sabbaticals, We also review pay parity at regular intervals in order to time-outs, parental/family leave, and partial early retirement. eliminate unjustified differences (given the same job profile, Parental leave for first and second care enables our people to role, competencies, experience, performance, etc.) as further manage their unique work-life needs. 2 Siemens without SHS. SIEMENS SUSTAINABILITY REPORT 2023 85