E30m will now be invested at the Bocholt and Kamp-Lintfort sites

E30m will now be invested at the Bocholt and Kamp-Lintfort sites

Siemens and the IG Metall trade union agreed last week not to transfer mobile phone production to Hungary, which would have resulted in the loss of 2,000 jobs at two German plants (PRW.com 22 June). The deal is valid until June 2006 and ensures continued production at Bocholt and Kamp-Lintfort for the next two years. The union accepted a 40-hour working week without pay adjustment, as well as a new performance-related payment.

There will now be E30m of new investments made at the plants in new products such as UMTS mobile phones. The agreement with Siemens comes one year after IG Metall had failed to get a 35-hour week in eastern Germany. It has set off a debate throughout the country in other industries on whether longer hours can preserve jobs against movement to countries with lower wage costs.

In a statement issued by IG Metall yesterday, the president of the Siemens general works council Ralf Heckmann said: “The compromise sets huge sacrifices on the employees, but the result is such a success, as the jobs remain in Germany and the originally intended transfer will not take place.”