BASF Plans more Short-Time Working for 1,000 at Ludwigshafen
LONDON (ICS news)--A further 1,000 BASF employees will be put on short-time working over the next four months, the German chemicals major said on Thursday.
The reduced hours would be introduced at 20 plants at its main production site in Ludwigshafen, Germany, mainly on pigments, intermediates, petrochemicals and inorganics units, BASF said.
Most of the cutbacks would be made in June but the plan will extend into September, the company said.
BASF employs 32,765 at the Ludwigsafen site.
Currently, 5,200 employees from its group companies are on short-time working at 19 sites in Europe, with approximately 4,000 in Germany. This total includes workers at the former Ciba Specialty Chemical sites.
Approximately 25% of the company's production capacity has been off line this year.
“Capacity utilization rates at many plants have remained very low since the beginning of the year, and we do not expect any improvement over the summer months,” said Harald Schwager, BASF’s executive director for human resources and head of the Ludwigshafen site.
“Short-time work is an appropriate measure to temporarily bridge the decline in orders. Without these measures, short-time work would have already been introduced for thousands of BASF employees in Ludwigshafen,” Schwager said.
BASF said in April that it was considering short-time working for up to 3,000 employees at Ludwigshafen.
Short-time working lets BASF cut working hours by between 20% and 40% for up to four months while employees receive a net wage of about 90% provided by the company and by the German government.
The rapid re-introduction of normal hours would be possible at any time should demand pick up.
Similar government-backed schemes are available in Belgium and Italy.
BASF has warned, however, that 2009 will continue to be difficult, with demand likely to be depressed.
It said it was expecting to cut its global workforce by at least 2,000 this year, including divestments, but excluding any restructuring of newly acquired Ciba.
BASF had 92,000 employees at the end of 2008.
The reduced hours would be introduced at 20 plants at its main production site in Ludwigshafen, Germany, mainly on pigments, intermediates, petrochemicals and inorganics units, BASF said.
Most of the cutbacks would be made in June but the plan will extend into September, the company said.
BASF employs 32,765 at the Ludwigsafen site.
Currently, 5,200 employees from its group companies are on short-time working at 19 sites in Europe, with approximately 4,000 in Germany. This total includes workers at the former Ciba Specialty Chemical sites.
Approximately 25% of the company's production capacity has been off line this year.
“Capacity utilization rates at many plants have remained very low since the beginning of the year, and we do not expect any improvement over the summer months,” said Harald Schwager, BASF’s executive director for human resources and head of the Ludwigshafen site.
“Short-time work is an appropriate measure to temporarily bridge the decline in orders. Without these measures, short-time work would have already been introduced for thousands of BASF employees in Ludwigshafen,” Schwager said.
BASF said in April that it was considering short-time working for up to 3,000 employees at Ludwigshafen.
Short-time working lets BASF cut working hours by between 20% and 40% for up to four months while employees receive a net wage of about 90% provided by the company and by the German government.
The rapid re-introduction of normal hours would be possible at any time should demand pick up.
Similar government-backed schemes are available in Belgium and Italy.
BASF has warned, however, that 2009 will continue to be difficult, with demand likely to be depressed.
It said it was expecting to cut its global workforce by at least 2,000 this year, including divestments, but excluding any restructuring of newly acquired Ciba.
BASF had 92,000 employees at the end of 2008.
quoted from: www.ICIS.com
