Tönnies evaluates changes a year after contract work policies end.

One year following the termination of work contract regulations, Tönnies is vigorously advancing its transformation agenda. On January 6, 2022, in Rheda-Wiedenbrück, the Tönnies Group provided a progress report, marking one year since the cessation of work contracts within the meat sector. Over the past 15 months, the company has transitioned 8,500 workers in Germany to direct employment status. A digital timekeeping system has been established across all locations, serving as the foundation for managing payroll. Furthermore, Tönnies has acquired 2,000 apartments, offering 5,800 accommodations across 800 properties nationwide, with the majority already renovated and furnished anew. The firm has seen remarkable advancements in employee living conditions, thanks to the diligent application of updated occupational health and safety standards, the NRW Housing Promotion Act, and additional criteria set by Tönnies itself. A third of Tönnies' workforce now prefers company-managed accommodation, while over 70 percent opt for private living arrangements. "We have made significant progress over the last year. While our journey isn't complete, we are on a promising path," stated Martin Bocklage, the Tönnies Group's HR director. In 2021, Tönnies Immobilien Services (TIS) achieved the following: - A substantial investment in residential spaces, amounting to tens of millions of euros. - Acquisition of 2,000 apartments, providing 5,800 living spaces within 800 properties. - Standardization and renegotiation of existing leases to benefit employees. - Renovation of 60 percent of these apartments, with 30 percent already meeting the company's standards upon acquisition. The remaining 10 percent are slated for future renovations. - An investment of 1.5 million euros in furnishing these properties, including the purchase of 450 new kitchens valued at over 300,000 euros, and the supplementation of existing furniture with necessary electrical appliances and new furniture pieces. Employees are charged a rent of 210 euros per person, which includes 120 euros for cold rent and 90 euros for ancillary costs, covering utilities like electricity, water, energy, waste disposal, and all furnishings, including electrical appliances and often internet access. Additionally, a janitorial service is provided, encompassing cleaning of common areas, minor repairs, and an emergency service. Regular inspections of each apartment are conducted quarterly. Contrary to allegations from a December TV magazine report, Martin Bocklage clarifies that the criticized living conditions of EU employees do not breach legal standards. The issues highlighted were primarily related to privately rented accommodations or a property that had been vacated earlier in the year and subsequently demolished by the owner. Local authorities near Tönnies' operations in Germany and around the main plant in Rheda-Wiedenbrück acknowledge the company's positive changes. Dr. Georg Robra, the first alderman of Rheda-Wiedenbrück, even described it as a "paradigm shift" in housing management. This is supported by regular, sometimes unannounced, inspections by responsible authorities and TIS, along with the company's integration staff. A report from the Social Affairs and Integration Department of Rheda-Wiedenbrück, dated September 16, 2021, to the Committee for Social Affairs, Migration, and Sports, notes that the Municipal Housing Control is monitoring 470 properties housing labor migrants. Of these, 366 are privately rented, 85 are managed by TIS, and the rest are either rented by other providers or under renovation. The inspections focus on living space adequacy, fire safety, and overall apartment conditions, with TIS being a reliable point of contact for addressing and resolving any identified issues. Since moving away from work contracts, Tönnies has directly employed 8,500 workers, primarily from EU countries, in its core food processing operations. The company is also establishing its own recruitment infrastructure, including offices in Serbia, Poland, and Romania, to facilitate personnel hiring without external assistance. A training program in Belgrade, in collaboration with a German educational institution, aims to prepare young technicians for the industry. While Tönnies still relies on external service providers for international recruitment during this transformation phase, these partners play a crucial role in language training and on-site integration, in collaboration with the Tönnies integration team. Despite the challenges posed by the pandemic, the Tönnies Group is content with the transformation's progress. However, Martin Bocklage emphasizes the importance of continuing these efforts without complacency, aiming to steadfastly pursue the path of change.