The council and workers’ representatives of MAN Energy Solutions agreed on a joint document describing the key issues of its restructuring. It defines the scope and type of measures that the company intends to put in place to ensure its long-term viability. The document proposes a re-release of 2,600 jobs. In return, concessions have been agreed on the price of labour, which will allow the corporate to achieve its restructuring objectives.
The company will reduce the length of its site in Berlin and its operations will focus on component production. It will also keep its activities intact in Hamburg. However, you will avoid the production of steam turbines, which is also carried out there. Restructuring measures have been agreed for the Augsburg and Oberhausen sites, and organisations in Denmark, France, England and Switzerland will also be streamlined.
The implementation of these measures will result in the loss of approximately 2,600 jobs, totaling around 1,650 in Germany and 950 in other European and non-European countries. This reduction will be made in a socially guilty manner, even if dismissals cannot be ruled out for internal commercial reasons.
Labor cost concessions
In order to meet the burden-relief targets of EUR 450 million, the parties to the collective labour agreement will negotiate to achieve price relief of around EUR 40 million consistent with the year for the 2021 to 2023 period.
According to Dr. Uwe Lauber, CEO of MAN Energy Solutions: “As far as we want, we cannot completely avoid task cuts. Implementation of the measures agreed in the document on the basis of countervailing measures will result in fewer losses of tasks than originally planned. At the same time, we are fulfilling our purpose and creating the freedom to better absorb external effects in the future. We optimize and focus our organizational structures and our long-term backline through cost reduction.
Volkswagen to sell its company
The Volkswagen Group supports the agreements defined in the document, in the hope that the preconditions for implementation will be effectively finald until the end of 2020. Once this happens, Volkswagen will suspect plans to sell MAN Energy Solutions until the restructuring efforts, which come with the task, are completed. cuts, price reductions and relocation of products to foreign production centers. This will apply at least until the end of 2024. The Volkswagen Group further agreed that the company will remain part of the organization at least until the end of 2026 if it achieves a profitability target of 9% of EBIT on a constant basis up to that date.