1 March, 2010Philips fires workers and pays higher bonuses to the top managers during time of financial crisis, reports the European Metalworkers' Federation.
THE NETHERLANDS: In a time of crisis many workers and their families often have to accept wage freezes or even cuts in order to keep their jobs. Philips workers are no different and were convinced by their directors to agree to some unpopular measures including redundancies.
In the last year Philips cut 5,474 jobs with many workers transferred to other jobs inside and outside the company forcing families to face a gloomy future. The workers agreed to the measures hoping one day the situation would change and the company would invest the economised resources to secure the future of the company and benefit those who create its wealth, providing them with better protected jobs and new opportunities.
Alas, their hopes were in vain as the top managers at Philips decided otherwise, reports the European Metalworkers' Federation (EMF). While announcing unchanged basic salaries for everybody else they preferred to fatten their own wallets. The annual incentive bonus for 2009 paid to the Philips CEO G.J. Kleisterlee reached 962,720 Euros, four times bigger than in 2008, when he got 220,000 Euros paid in addition to his annual salary of 1.1 million Euros. The total cash amount paid to the board of directors grew from 830,720 Euros in 2008 to 3,082,892 Euros in 2009.
The EMF has called on its affiliates to protest against the outrageous behaviour of Philip's management. See here for details: http://www.emf-fem.org/Press/Press-releases/Outrageous-Bonuses-for-Top-Management-in-Philips
The company annual report can be downloaded on the company web site here: http://www.annualreport2009.philips.com/downloads/pdf/PhilipsAnnualReport2009_FullVersion.pdf
Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide.