EMCC European Monitoring Centre on Change

Siemens

Company/Organisation:
Siemens

Geographic Location

Country: Germany
Location of affected unit(s): Bocholt, Kamp-Lintfort

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26 - Manufacture of computer, electronic and optical products
Number Employed: 5000
Group: Siemens

Employment Effects

Announcement Date: 12-03-2004
Planned Job Reductions min: 2000
Planned Job Reductions max: 2000
Type of Restructuring: Offshoring/Delocalisation

Additional Information

Siemens announced its intention to delocalise 2,000 jobs to Hungary. The concerned sites are Bocholt and Kamp-Lintfort, which produce mobile and fixed telephones. On 25 June 2004, an agreement has been reached with IG Metal. A two-year contract stipulates that as of 1 July 2004, the workers of the two sites will work 40 hours a week, without monetary compensation. According to necessity, the weekly schedule may rise up to 48 hours a week, without compensation. The average working time over the two-year period may not however exceed 40 hours per week. Christmas and holiday bonuses will be replaced by results-linked bonuses. This agreement has allowed to save the 2,000 jobs. It indeed reduces production cost by 30%.