Heidelberg Concludes Negotiations on Planned Job Cuts – Package of Measures Considerably Contributes to Cost Reduction
10/07/2009
- Management and employee representatives agree on
reconciliation of interests and redundancy plan at German sites
- 1,500 jobs cut through socially acceptable measures agreed for financial year 2009/2010
- Additional savings on personnel costs by dispensing with collectively agreed payments and payments above the general pay scale and agreeing flexible working time models
- Personnel costs in the current financial year to be cut by more than EUR 250 million compared to the previous year
The management and employee representatives of Heidelberger Druckmaschinen AG (Heidelberg) have agreed on a reconciliation of interests and a redundancy plan for around 1,300 job cuts at the company's German sites in Heidelberg, Wiesloch/Walldorf, Amstetten, Brandenburg, Ludwigsburg, and Mönchengladbach. A reconciliation of interests and a redundancy plan were concluded at the Mönchengladbach site back in August. A further 200 employees have agreed to leave the company on a mutually acceptable basis, making a total of 1,500 job cuts at the German sites in financial year 2009/2010.
Thus, the company realizes its package of cost-cutting measures. The core element of this package is to achieve cost cuts equivalent to a reduction in personnel capacities of up to 5,000 jobs worldwide by financial year 2010/2011. Together with the measures now agreed, the company is reducing its global headcount by around 4,000. The additional savings will be made by dispensing with collectively agreed payments and payments above the general pay scale, and by agreeing flexible working time models to adapt personnel capacities to the order situation. The Management Board and executives are also foregoing remuneration to a comparable extent in order to help lower personnel costs. The agreed package of measures will result in these costs being cut by more than EUR 250 million during the current financial year compared to the previous year.
"Following constructive discussions, we have found a reasonable solution for everyone involved," stated Heidelberg CEO Bernhard Schreier. "These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company's future," he added.
In addition to the agreed severance arrangements, Heidelberg is offering all employees affected the opportunity to move to a transitional company for 12 months as of March 1, 2010. The measures now agreed with the Works Council and the IG Metall union will be implemented by the end of March 2010. All costs associated with this restructuring have already been incorporated in the accounts for financial year 2008/2009.
The agreement on job cuts means that all the company's planned cost-cutting measures are under way. By financial year 2010/2011, this should generate annual savings in the order of EUR 400 million.
As of June 30, 2009, the Heidelberg Group employed 18,353 staff worldwide.
For further information, please contact:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6221 92 5900
Fax: +49 (0)6221 92 5069
E-mail: thomas.fichtl@heidelberg.com
Important note:
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.
- 1,500 jobs cut through socially acceptable measures agreed for financial year 2009/2010
- Additional savings on personnel costs by dispensing with collectively agreed payments and payments above the general pay scale and agreeing flexible working time models
- Personnel costs in the current financial year to be cut by more than EUR 250 million compared to the previous year
The management and employee representatives of Heidelberger Druckmaschinen AG (Heidelberg) have agreed on a reconciliation of interests and a redundancy plan for around 1,300 job cuts at the company's German sites in Heidelberg, Wiesloch/Walldorf, Amstetten, Brandenburg, Ludwigsburg, and Mönchengladbach. A reconciliation of interests and a redundancy plan were concluded at the Mönchengladbach site back in August. A further 200 employees have agreed to leave the company on a mutually acceptable basis, making a total of 1,500 job cuts at the German sites in financial year 2009/2010.
Thus, the company realizes its package of cost-cutting measures. The core element of this package is to achieve cost cuts equivalent to a reduction in personnel capacities of up to 5,000 jobs worldwide by financial year 2010/2011. Together with the measures now agreed, the company is reducing its global headcount by around 4,000. The additional savings will be made by dispensing with collectively agreed payments and payments above the general pay scale, and by agreeing flexible working time models to adapt personnel capacities to the order situation. The Management Board and executives are also foregoing remuneration to a comparable extent in order to help lower personnel costs. The agreed package of measures will result in these costs being cut by more than EUR 250 million during the current financial year compared to the previous year.
"Following constructive discussions, we have found a reasonable solution for everyone involved," stated Heidelberg CEO Bernhard Schreier. "These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company's future," he added.
In addition to the agreed severance arrangements, Heidelberg is offering all employees affected the opportunity to move to a transitional company for 12 months as of March 1, 2010. The measures now agreed with the Works Council and the IG Metall union will be implemented by the end of March 2010. All costs associated with this restructuring have already been incorporated in the accounts for financial year 2008/2009.
The agreement on job cuts means that all the company's planned cost-cutting measures are under way. By financial year 2010/2011, this should generate annual savings in the order of EUR 400 million.
As of June 30, 2009, the Heidelberg Group employed 18,353 staff worldwide.
For further information, please contact:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6221 92 5900
Fax: +49 (0)6221 92 5069
E-mail: thomas.fichtl@heidelberg.com
Important note:
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.
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