Mr. Karaoglu, what’s new in the supplier’s declaration?
Since 2013, plant and service contract businesses have committed to comply with the social principles of Daimler AG in the supplier's declaration. This revised version will cover new requirements. Özkan Karaoglu, Head of Daimler Supplier Management & Guidelines, explains the innovations and benefits.
Mr Karaoglu, what do you hope to achieve with the supplier’s declaration?
Karaoglu: Four years ago, Daimler adopted social standards for the awarding and execution of factory and service contracts on their premises. The businesses commit themselves to complying with them in the supplier’s declaration.
What is the declaration specifically about?
Karaoglu: It addresses occupational health and safety and the standards for the placement of employees, among other things. In addition, all factory and service contractors commissioned by Daimler must pay their employees the starting salary of the applicable sectoral collective agreement at the very least. Regardless of whether they are bound by wages or not. Other principles concern the use of temporary workers and subcontractors.
How does Daimler ensure compliance with social standards?
Karaoglu: Companies commissioned by Daimler to provide a factory or service must comply with our social principles. In order to ensure sustainability, an audit team randomly checks compliance with standards and the correct execution of factory and service contracts.
And what benefit is this to the suppliers?
Karaoglu: Social Standards are indispensable for the division of labor and our mutual success. They are the foundation stone for continuing to use factory and service contracts competitively. Daimler is playing a pioneering role with social principles, because they go beyond existing legal regulations in many respects.
An updated supplier declaration has been in existence since September.
Karaoglu: The revision was necessary as the Temporary Employment Act (AÜG) was amended in April 2017. But we didn’t update the supplier’s declaration only to that effect. We also have adjusted some other regulations, for example for auditing and cancellation.
What do affected suppliers need to do now?
Karaoglu: We have been sending the documents to our factory and service contractors since September 2017. By mid-2018, we hope to make the new declaration available to all suppliers who work for us on Daimler premises. In order to ensure that everything runs smoothly for our partners, you will also receive a FAQ list and the brochure “guiding principles for occupational health and safety“.