25 August, 2008
IGBCE scored a victory for all German workers recently when it steadfastly demanded, and won, assurances that bearings company Schaeffler KG abide by current work cultures, and work rules, in its 49.99% buy-up of Continental AG.
The €75-a-share deal, which forbids privately-held Schaeffer of southern Germany from increasing that stake for the next four years, was finalized early on 21 August. Schaeffler’s earlier and hostile bid for Conti, Germany’s major tyre, brakes, and auto-components firm with operations in 36 countries, was €70.12-a-share.
The take-over battle surfaced late in July, and the unsolicited offer was met by resistance from German unions IGBCE and IG Metall, as well as by Conti’s Works Council. That stern resistance moved workers’ interests front and center inside boardroom negotiations.
IGBCE's Werner Bischoff, Deputy Chairman of Continetial's Supervisory Board
IGBCE President Hubertus Schmoldt said early in mid-August that if the hostile takeover were to occur, “no company would be safe.” The union, together with IG Metall, then worked for transparency and job security.
Workers and their unions won by using IGBCE leadership on Continental’s supervisory board, as well as from the Works Council and other stakeholders. The result was a firm commitment that no asset sales, job losses, structural changes to Conti’s work organization will occur, or will Schaeffler involvement alter collective agreements, Works Council structures, supervisory board oversight, or other existing regulatory duties inside the new €35 billion company.
“We achieved an important step into a new era for Continental,” stated IGBCE Head of Collective Bargaining Werner Bischoff, also the deputy chairman of Conti’s supervisory board. “There will be no breaking of company structures, and jobs and worksites will be secure,” he said, adding that all worker participation in the affairs of the merged company will remain intact.
IGBCE President Hubertus Schmoldt (left), with former Chancellor Gerhard Schröeder
The IGBCE also used political influence to cement those protections: trade union ally and IGBCE friend Gerhard Schröeder will serve as a guarantor for workers’ interests, as well as for Conti shareholders.
Language exists stating that “former German Chancellor Dr Gerhard Schröeder is authorized and empowered to enforce all obligations of Schaeffler at any time by legal action or out of court. In this regard, he is entitled to request information from Schaeffler about their level of compliance with their obligations under the Investment Agreement.”