LANXESS plans to transfer its "Technical Services" to a separate legal entity
The future subsidiary is scheduled to change internally to a new worktime and service model already on January 1, 2007
The LANXESS chemicals group plans to transfer its Technical Services group function to a separate legal entity. This future wholly owned subsidiary is scheduled to change internally to a new worktime and service model already on January 1, 2007.
"I am delighted that in collaboration with a working group representing the Central Works Council we have found a solution so quickly that reflects the interests of both the employees and the company," comments Ulrich Koemm, Member of LANXESS's Management Board. "In future, through an increase in flexibility and efficiency, the technical services group function is to take on tasks that were previously carried out by external service providers."
The agreement still has to be approved by LANXESS's Central Works Council and the German Mine, Chemical and Power Workers' Union (IG BCE). Its central points are:
- The new company will have a chance to position itself competitively, like an external service-provider. Key performance indicators and savings targets will be defined for it. These will be reviewed jointly after 12 and 24 months. If the targets are not met, alternative solutions will be examined.
- All the 700 or so employees working for the Technical Services group function and the maintenance units in the business units are to be transferred to the new company.
- Worktime is to be increased from 35 to 40 hours per week. Compensation will be based on a 37.5 hour working week. In addition, variable compensation payments will be agreed on the basis of attainment of the new company's targets.
The establishment of the new subsidiary is part of the fourth package of restructuring measures announced in July.
Other news from the department business & finance
