ERGO and the ver.di tariff commission reach an extensive agreement on the ERGO Strategy Programme (ESP)

Media Information, 17.05.2018

Over the past few weeks, ERGO and the ver.di trade union tariff commission have been negotiating a social regulation framework to supplement the ERGO Strategy programme. The agreement, which is subject to the approval of the Group work council, includes a waiver of redundancies due to operational reasons, a location guarantee, the standards of outsourcing measures and an accountability to negotiate a collective agreement for ERGO Direkt employees. In addition, the number of administration traineeships is to be doubled from 40 to 80. The parties will conclude an agreement on the subsequent employment of trainees after graduation. With this fixed regulation framework in place, ver.di and the work council pledge to actively support the ESP programme and all necessary transformation processes.

Markus Rieß, Chief Executive Officer of ERGO Group, “The Strategy Programme has significantly boosted ERGO’s strength and competitive edge, and these factors also benefit our employees. I am pleased that the agreement we have negotiated secures us a greater active support throughout this transformation process, and I firmly believe that we can work together to make ERGO a modern, future-oriented insurance company.”

Support from ver.di

Commenting on the negotiation results, Frank Fassin of ver.di said, “We acknowledge and welcome the positive development that has been achieved at ERGO through the strategy project. Now, with the aid of the social regulation framework we have negotiated, we can also ensure that the interests of ERGO employees are fundamentally secured. For all the people who work at ERGO this is an important signal to continue to support the ERGO Strategy Programme and play a part in shaping the future of the company. We intend to support and accompany this course over the coming years.”

Job and location protection
Under the terms of the agreement, job and location protection are to be linked to the attainment of the ERGO Strategy Programme’s economic targets. This means that both commitments are subject to the results and main cost targets set in the strategy programme that the company achieves. The existing location protection for the administration offices in Berlin, Düsseldorf, Hamburg, Cologne, Mannheim and Munich will be extended and expanded. These sites will be protected until the end of 2021; location protection has now also been expanded to the ITERGO locations, the Nuremberg office, including brokers and cooperation sales for the first time.

Furthermore, ERGO has agreed not to reduce the number of ERGO tied agents’ regional head offices until the end of 2021, provided that ERGO Deutschland’s new business targets are met. The parties also agreed that job and location protection are to be extended by one year until the end of 2022 if the above targets are met.

Standards in outsourcing
In the event of outsourcing, ERGO has agreed to ensure that the company’s employees retain their original employment terms even if they are transferred to an outsourcing partner. If this cannot be guaranteed for the first three years after transferring, then the employee will be entitled to return to ERGO.

Positive sign for employees
Ulf Mainzer, Labour Director at ERGO, “With this agreement we demonstrate stability and continuity to all our employees, and we ensure that the success that has been achieved can be experienced by everyone in the company. This agreement marks an important and strategically crucial step into the second phase of the ERGO Strategy Programme.”

For further information, please contact:

Jürgen Homeyer

Media Relations

Tel +49 211 477-7810
Fax +49 211 477-1511

About the ERGO Group AG

ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia. Within the group, three entities manage domestic and international business, as well as digital and direct business (ERGO Deutschland, ERGO International and ERGO Digital Ventures). About 42,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2017, ERGO recorded a premium income of 19 billion euros and rendered benefits to customers of 18 billion euros. ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers.
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This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

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