Lanxess introduces short-time working for next 12 months

ERJ staff report (DS)

Leverkusen, Germany, Lanxess AG has put together a global package of measures to mitigate the effects of weak demand worldwide.

The package includes “introduction of a 35-hour working week with a corresponding remuneration decrease as of March 2009 for initially 12 months ” and Lanxess will not pay bonuses to employees for the business year 2009 for 5000 German non-managerial employees in 2009. The company said it had agreed the measures after holding negotiations with employee representatives and the IG BCE (the German Mining, Chemical and Energy Industry Union).

“We are in the midst of a global recession”, said LANXESS Chairman of the Board of Management Axel C. Heitmann. “Customer demand, especially in the automobile and construction industries, remained weak in January and we do not expect the current economic environment to radically improve going forward.”

The board of management will take a 10 percent pay cut, while other management level staff, “variable salaries will be adjusted and their annual fixed salary reviews for 2009 will be postponed by at least six months.”

Salary reviews worldwide will also be postponed by at least six months. In some countries, salary increases will be postponed by twelve months. In addition, measures to lower personnel costs will be agreed upon according to the respective country conditions.

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Press release from Lanxess