First results from the evaluation of Volkswagen’s Auto 5000 project suggest that more unemployed people could be successfully integrated into high quality jobs.
With its 5000 x 5000 project, Volkswagen AG sets out to break new ground with regard to employment, work organisation and business policy within the framework of an independent company (Auto 5000 GmbH). The main goal of the project is to integrate a large number of unemployed people into a typical employment relationship. The project title 5000 x 5000 reflects the objective to employ 5,000 previously unemployed people with a monthly remuneration of DEM5,000 (€2,500).
The project has the support of the local employment office, the Chamber of Industry and Commerce (IHK) and the Engineering Workers Union (IG Metall). Training pay and project pay agreements were the successful outcome of initially controversial collective negotiations (DE0109201F).
Evaluation
The Sociological Research Institute (SOFI) at the University of Göttingen has carried out an initial evaluation of the project. The first results focus on the areas of recruitment and training. This monitoring process forms part of the funding agreement with Volkswagen Corporation, IG Metall, the Hans-Böckler-Foundation, and the Volkswagen-Foundation.
The research techniques used for the evaluation include interviews, group discussions, surveys and process analyses. Feedback is considered to be an important element for further development of the project.
Recruitment
The majority of the 3,000 employees so far had previously been unemployed. This was the case for 89% of production workers and 65% of engineers. One third of the production workers and a quarter of the engineers had been without a job for six months or more, placing them in the category of long-term unemployed people.
A research conclusion is that about two-thirds of the production workers would not have found a job in the automobile industry, based on the usual selection criteria. The majority of the employees had not worked in the automobile sector before.
The selection and training of applicants took place in cooperation with the employment office and the company. The company benefited from state subsidies for their investment in skills development and occupational training. For the applicants, the project was attractive in terms of job security, good pay opportunities and career development. From a pool of 43,000 initial applicants, 12,500 were invited to their local job centre for further tests and an interview.
Training
The successful applicants were given three to six months’ training, and a temporary six-month contract. Almost all the participants were then granted a permanent contract. The participants judged the training process to be either very good or good.
Further training of three hours per week is offered to employees on permanent contracts. Half of this time is considered as company work time. After two years’ experience, employees can obtain a ‘skilled worker in car manufacture’ certificate. This certificate has been developed by the IHK and Volkswagen.
The company considers lifelong learning as one of the key components of the project. Vehicle development times are becoming shorter all the time. Therefore, continuous training of employees is seen as an ‘ 'extremely vital competitive factor' ’.
Future developments
The production will be in full operation by 2004. The research project will reassess the work in 2005. Further research will examine experiences with team work, the new payment system and organisation of management.