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29 July, 2001Is it only the economic turbulence, or the consequence of the last attempt by the TNC to reorganise?
SWITZERLAND/GLOBAL: As reported on this website on July 24, after declaring a total freeze in hiring of new personnel just a few weeks ago, ABB, one of the world's most well-known electrical engineering companies, announced it would reduce its current workforce by 12,000 jobs worldwide within the next 18 months (see associated link). These planned job cuts were announced without any consultation or even information to the workers' representatives and their unions. Neither the European Works' Council nor its Select Committee received any information before the company publicly disclosed its plans.
Once again a transnational company has shown that the shareholders' interests get high priority while the stakeholders' interests are simply neglected, even though many of them can expect to lose their jobs within the upcoming months.
In a letter to the president and CEO of ABB, Jörgen Centerman, the IMF demanded an emergency meeting between the management and an IMF delegation in order to discuss the effects of the announced job reductions on the workplace in the different countries and to look at possible alternatives to the company's plans.
The IMF's general secretary, Marcello Malentacchi, also reminded Mr. Centerman of the discussions which took place at the IMF World Conference for ABB at the end of March 2001 in Mannheim, Germany, where all workers' representatives asserted the necessity for earlier information and closer cooperation to overcome the problems within the company. These problems, says the IMF, can only be solved in common and with the support of the workforce and its representatives, and not against them. The current attitude of ABB can clearly not be seen as an attempt by the company to develop closer cooperation and to increase the confidence of the workforce in the company and its management.
"Announcing job reductions and cost cuts cannot be considered as creative and socially responsible concepts," continued Malentacchi. This only imitates a policy many managers believe will pacify analysts, shareholders and stock exchanges. However, it's such unilateral company decisions which bring people to believe that globalisation has to be fought totally."
Once again a transnational company has shown that the shareholders' interests get high priority while the stakeholders' interests are simply neglected, even though many of them can expect to lose their jobs within the upcoming months.
In a letter to the president and CEO of ABB, Jörgen Centerman, the IMF demanded an emergency meeting between the management and an IMF delegation in order to discuss the effects of the announced job reductions on the workplace in the different countries and to look at possible alternatives to the company's plans.
The IMF's general secretary, Marcello Malentacchi, also reminded Mr. Centerman of the discussions which took place at the IMF World Conference for ABB at the end of March 2001 in Mannheim, Germany, where all workers' representatives asserted the necessity for earlier information and closer cooperation to overcome the problems within the company. These problems, says the IMF, can only be solved in common and with the support of the workforce and its representatives, and not against them. The current attitude of ABB can clearly not be seen as an attempt by the company to develop closer cooperation and to increase the confidence of the workforce in the company and its management.
"Announcing job reductions and cost cuts cannot be considered as creative and socially responsible concepts," continued Malentacchi. This only imitates a policy many managers believe will pacify analysts, shareholders and stock exchanges. However, it's such unilateral company decisions which bring people to believe that globalisation has to be fought totally."