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November 14, 2005 12:00 AM

Conti agrees scheme for 860 job losses at ex-Phoenix HQ in Hamburg

ERJ Staff
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    By Liz White, ERJ staff

    Hanover, Germany- Continental AG's management has agreed with the works council and the IGBCE trade union a severance scheme for 860 workers at the former Phoenix AG headquarters in Hamburg-now about to be integrated into the ContiTech rubber processing business.

    Under the agreement, production of hose joints will continue in Hamburg until 2007. Meanwhile ContiTech can begin some structural changes, said a statement from the Hannover-headquartered tyre, rubber and automotive parts group.

    As both firms have previously said, the agreement allows for transfer of workers to other jobs within the Continental group.

    "The negotiations were difficult, but always characterised by a mutually serious will to gain a concensus," said Meinhard Liebing, Phoenix's executive committee speaker.

    "I am relieved that the phase of uncertainty at the Hamburg site is over … We will concentrate our efforts on brisk integration of Phoenix and ContiTech," he added.

    The agreed package covers compensation, and part-time work for elderly people, as well as the internal job exchange from Phoenix to Conti.

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