Breakthrough at Rohwedder: Employees' Representatives and Management Board Agree Terms of Reconciliation of Interests and Social Compensation Plan
The ten-page plan enables Rohwedder AG to adjust the structure of its personnel expenses to a volume of business than has nearly halved since the crisis began. To date only 50 out of around 500 jobs in Germany have been adjusted cost-effectively. Personnel cost savings in respect of a further 100 jobs will now follow, avoiding compulsory redundancies wherever possible. Every flexible adjustment opportunity, such as extending short-time working to 100 percent, is to be given preference over structural adjustments.
The measures drawn up and agreed jointly by the joint works council and the corporate management will lead to further savings in personnel expenses of around EUR 6 million. Rohwedder has thereby made significant further progress toward its stated objective of achieving cost savings of around EUR 30 million as opposed to about EUR 24.5 million.
Olaf Fritsch, head of personnel management at Rohwedder, said "the negotiations were tough on issues but constructive and conducted in a spirit of understanding for the other side. The result now achieved after five months of constructive negotiations will take us a decisive step forward in the struggle against the crisis without neglecting the aspects of social compatibility and retention of a restart capability." Sole managing director Manfred Müller added that "there will be a time after the crisis, and we see ourselves as superbly positioned for it also by the measure now agreed."