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Deal reached at Philips Semiconductor

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2 August, 2001IG Metall settles the conflict at the bargaining table.

GERMANY: IG Metall, the 2.7 million-strong German metalworkers' union, reports that on August 1 a recognition agreement was concluded and signed between the union and management of Philips Semiconductor. The accord, which covers 3,060 workers, thus solves the conflict which arose when Philips announced it would outsource its two semiconductor plants in Germany. This "outsourcing" would also have meant that the collective agreement for the metal industry would no longer have been applicable for the two plants and that Philips was only willing to pay wages and benefits on the basis of the collective agreement in the chemical industry.
The just-concluded agreement, which was reached with massive pressure and the overwhelming support of the workforce at the two plants (since the conflict started IG Metall got 700 new members in the two plants), recognises that the metal industry collective agreement will continue to be the basis for wages and other benefits in the semiconductor sector of Philips in Germany.
The agreement additionally includes working time regulations which facilitate handling of production peaks more adequately and in a shorter time period and give the possibility to compensate overtime and additional shifts either in pay or in leisure time within a period of 3 years. The time account of a single worker must not exceed 150 hours.
The deal also contains a clause that future collective agreements concluded for the metal industry will automatically apply to the Philips semiconductor plants.