The vaunted German model of cooperation between labour unions and management—the so-called Mitbestimmung—can claim another victory, as the KraussMaffei Group has decided to reverse its decision to close its plant in Treuchtlingen, Germany.
The plastics processing equipment maker announced the closure of the plant in mid-November, stating that it would move production of components for its molding equipment to other facilities in Germany and Slovakia. Following negotiations with the national metalworkers union IG Metall and the works council, which represents workers at the factory level, an agreement was reached to keep the Treuchtlingen plant running in exchange for some concessions.
"In the context of constructive and objective negotiations, all parties have agreed that there will be no operational
redundancies until 31 December 2015," CEO Jan Siebert is quoted as saying on the KraussMaffei website. To increase the international competitiveness of Kraus Maffei, a 38-hour workweek will be instituted from January to September 2014, followed by a 37-hour workweek from October 2014 to December 2015, with no impact on wages, the press release went on to say.