11 July, 2008IG Metall calls restructuring plan "irresponsible", "excessive", and "unacceptable".
GERMANY: Siemens AG's announcement to cut 16,750 jobs, or about 4 per cent of its workforce worldwide, has drawn heavy opposition from IG Metall, the union which represents the majority of Siemens workers in Germany, calling the mass restructuring plan extreme, and unjustified.
The German electronics and engineering conglomerate employs 400,000 workers worldwide. Almost one third of the cuts are planned for its German operations, of which IG Metall has reported that 75 per cent of these jobs slated for downsizing are covered by the union's collective agreement.
IG Metall has criticized the job cuts pointing out that the company is financially sound and that product order books "are full." The union and its members question whether the company will be able to reach its goal of gaining market dominance with less staff. "The strength of Siemens is the highly qualified and motivated staff," said Werner Neugebauer, district manager of IG Metall Bavaria."Cost reduction through job cuts does not replace any sustainable strategy, but is a sign of the lack of good ideas," he added. Neugebauer was also quoted in the press as saying "Cutting only jobs and selling (off production sites) is irresponsible."
Siemens management plans to begin negotiations with unions and worker representatives immediately. The company has said it would use transfers, and part-time pre-retirement schemes, with contracts terminated "only as a last resort." The union is waiting until after discussions with Siemens management before announcing any collective response, however union representatives have not ruled out the possibility of coordinated protest in the future.
The next meeting between the Siemens management board and employee representatives will take place at the general works council meeting July 23.