Many auto manufacturers are shutting down their facilities temporarily in the wake of the novel coronavirus pandemic. Porsche announced the closure of its German Zuffenhausen plant and its Leipzig production facility beginning on March 18th, and just three days ago, said that those same facilities would remain closed until at least April 14th. Today though, the company is extending a kind gesture to many of its out-of-work employees.
Porsche will give workers a €9,000 (approximately £8,000) bonus "for the special commitment of the Porsche workforce in the 2019 financial year," with €700 (approx. £614) of it available as a special contribution to individual employee pension plans. And that bonus is well deserved: Porsche highlighted sales in North America increased by 7.6 percent in 2019, the company moving a total of 61,568 cars.
"The success of our company is only possible through the work of our colleagues," Chairman Werner Weresch says in a statement. "All of them have worked for Porsche with great commitment in the past year. It is part of our Porsche culture that the workforce is also rewarded for this."
But with that generous bonus comes a slight hitch. As Porsche increases its overall donation volume by €5.0 million (approx. £4.4 million), to essential services like food banks and medical supply companies, the company is asking its workers to pitch in some additional good will, as well. That voluntary employee bonus comes with “an appeal for donations… to support the ‘Porsche aid' program.”
"Solidarity in our society is more important than ever," Oliver Blume, Chairman of the Executive Board at Porsche says. "Industry, politics and society: we will overcome the Corona crisis together. Porsche is taking on social responsibility. This is our fundamental philosophy and our understanding of sustainable action."
As a friendly reminder, Porsche rakes in more than £20 billion in total revenue annually. And the company has an estimated brand value of about £9 billion, according to 2018 statistics provided by Forbes.
Gallery: 2021 Porsche 911 Turbo S Coupe first drive
Porsche gives employees a voluntary bonus in the success year 2019
The 2019 financial year was a very successful one for Porsche. The sports car manufacturer traditionally allows its employees to share in the company's success. In times of the Corona crisis, the company is combining the voluntary bonus with an appeal for donations to its employees to support the "Porsche aid" program.
To this end, Porsche has defined six fields of action and increased its donation volume by five million Euros: the expenditure for food donations to the food banks in the vicinity of the company locations was doubled to 200,000 Euros. The program also comprises measures for the procurement of urgently needed medical equipment as well as the support of the crisis teams of Baden-Württemberg and Saxony with project managers and IT specialists. It also includes the targeted voluntary work of Porsche employees with charitable organizations.
Oliver Blume, Chairman of the Executive Board at Porsche AG: "Solidarity in our society is more important than ever. Industry, politics and society: we will overcome the Corona crisis together. Porsche is taking on social responsibility. This is our fundamental philosophy and our understanding of sustainable action".
The voluntary special payment for the successful year 2019 was jointly determined by the Executive Board and the Works Council at the beginning of the year - and thus well before the outbreak of the corona crisis. It consists of two components: 9,000 Euro will be paid out for the special commitment of the Porsche workforce in the 2019 financial year. 700 Euro will be available as a special contribution to the Porsche VarioRente or to the individual pension plan. Employees are encouraged to make voluntary donations to charitable organizations. The Executive Board at Porsche AG is also personally supporting this initiative and is donating a total of half a million euros privately. This donation supplements the Porsche donation program for hospitals and charitable organizations.
"The positive development of Porsche is the result of a great team effort. Everyone has contributed to it. Everyone should benefit from it. This year's voluntary bonus stands for solidarity, as well as tax revenues and purchasing power for the restart", says Oliver Blume. Werner Weresch, Chairman of the General and Group Works Councils of Porsche AG: "The success of our company is only possible through the work of our colleagues. All of them have worked for Porsche with great commitment in the past year. It is part of our Porsche culture that the workforce is also rewarded for this".
Porsche's claim is to manage the crisis systematically and responsibly and to see it as an opportunity. For the period after the Corona crisis, Porsche is preparing for an orderly restart. In doing so, the health of the people is at the forefront.