German IGBCE Wins Financial Security for Workers of RAG

With the last hurdle cleared on 13 June for the public stock listing next year of German mining, energy, and chemicals company RAG, IGBCE succeeded in getting workers’ future security guaranteed, as well as winning retirement security for coalminers in the event mining of anthracite coal ceases in 2018.

The central tenet to a negotiated agreement between German politicians, IGBCE, RAG CEO Werner Müller, and others is the creation of a new foundation that will hold a 25.1% in the company, which is expecting a new name once it is listed. The foundation would sell shares in the chemicals, energy, and real estate portion of RAG, with proceeds estimated to range from €6 billion to €8 billion to cover pension and other liabilities.

Additionally, RAG will make €3 million available to immediately assist workers at the insolvent Deilmann Haniel Mining Co. in Dortmund. IGBCE President Hubertus Schmoldt thanked Müller for his leadership during the six months of difficult talks. IGBCE also endorsed the decision for Müller to hold the central strategic position of the new public-traded company.

“It is now finally clear that we will go forward to the stock exchange with an integrated company involving chemicals, energy, and real estate,” stated Schmoldt. “This is a solid basis for future jobs,” adding that financial promises also have been made for the loss of coal-mining jobs, thus meeting that social obligation.

The 13-member board of the new company will include Schmoldt, as well as the current Works Council chairman of RAG.