Heidelberg says the agreement means that all the company’s planned cost-cutting measures are under way. By financial year 2010-11, this is expected to generate annual savings in the order of €400m.
According to Heidelberg, a reconciliation of interests and a redundancy plan were concluded at the Mönchengladbach site back in August. A further 200 employees have agreed to leave the company on a mutually acceptable basis, making a total of 1,500 job cuts at the German sites in financial year 2009-10.
The company says the core element of this package is to achieve cost cuts equivalent to a reduction in personnel capacities of up to 5,000 jobs worldwide by financial year 2010-11. Together with the measures now agreed, the company is reducing its global headcount by around 4,000.
The additional savings will be made by dispensing with collectively agreed payments and payments above the general pay scale, and by agreeing flexible working time models to adapt personnel capacities to the order situation, according to Heidelberg.
Heidelberg management board and executives are also foregoing remuneration to a comparable extent in order to help lower personnel costs, according to the company. The agreed package of measures will result in these costs being cut by more than €250m during the current financial year compared to the previous year.
Bernhard Schreier, CEO of Heidelberg says, “Following constructive discussions, we have found a reasonable solution for everyone involved. These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company’s future.”
The measures now agreed with the Works Council and the IG Metall union will be implemented by the end of March 2010. All costs associated with this restructuring have already been incorporated in the accounts for financial year 2008-09.
As of June 30, 2009, the Heidelberg Group employed 18,353 staff worldwide.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter
