In addition, Heidelberg has also introduced a working-time concept, in which staff can voluntarily reduce their working hours to 57 per cent, with a corresponding cut in pay. The company will provide compensation for part of the lost salary for a period of maximum four years.

The working hours of staff adopting this employment model will be based on company needs. This concept is intended to reduce the number of compulsory redundancies still required.

Bernhard Schreier, CEO of Heidelberg says, “Following constructive talks, management and employee representatives have agreed on a strategy for adapting existing capacities to the order situation while still keeping as many staff and thus as much valuable know-how as possible at the company.

“We have also achieved our savings targets. The package of measures now agreed marks a new departure for everyone involved in the negotiations and demonstrates a great sense of responsibility on all sides.”

Heidelberg outlines that a key element of this package is to cut costs by an initial €60m in financial year 2010-11 and a total of €80m in financial year 2011-12. Together with the €400m of savings already achieved in financial year 2009-10, this will result in total annual savings of €480m by financial year 2011-12.

As of June 30, 2010, the Heidelberg Group had a workforce of 16,218 worldwide.

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