Agreement on working time flexibility at Siemens

On 3 October 1997, the Siemens industrial group announced that it had concluded a framework works agreement on flexible working time at its German medical technology unit, which secures investment and preserves jobs.

On 3 October 1997, the industrial group, Siemens, announced that management and works council at its medical technology unit in Erlangen had concluded a framework works agreement on flexible working time. As a consequence, Siemens will invest roughly DEM 200 million and build a new centre. Local government has promised be to supportive. The background to the agreement is an expected loss of about DEM 170 million at the Siemens medical technology unit for the business year ending 30 September 1997.

The works agreement includes:

• flexible reaction depending on orders. Production is possible at least 12 hours per day for six days per week. Certain key services, such as spares stores, may be provided seven days per week; and

• the abolition of the Saturday work premium.

According to Heinrich v Pierer, CEO at Siemens, the management, works council, trade unions and local government had succeeded in gaining a locational advantage compared with other production sites which, at first glance, would have been more cost efficient. As a consequence, 5,000 jobs at Siemens Erlangen would remain internationally competitive. Werner Möschel, chair of the local Siemens works council, welcomed the agreement as an important step to preserve jobs at the Erlangen production site.