Siemens repeatedly constructs at Eintracht on occasion
Siemens, a global technology powerhouse, is undergoing a significant transformation to adapt to changing market conditions, resulting in the planned reduction of 5,600 jobs at its Digital Industries business. This move affects approximately 2,500 jobs in Germany, with an additional 250 jobs in the charging solutions for electric cars division.
The company's transformation aims to find solutions where people do not leave the company but move from position A to position B, requiring qualification of the employees. This approach is part of a broader strategy to improve employee wages, promote internal transfers, and support affected employees during transitions.
While specific details on wage improvements and internal transfer programs within Siemens are not explicitly detailed, it is common in such transformation agreements to negotiate with labor unions to secure wage deals and enhance internal mobility. For instance, comparable industry firms like ThyssenKrupp have secured wage deals in conjunction with workforce reductions to support employees during transitions. Siemens likely follows similar practices to mitigate the impact of layoffs.
The transformation agreement also includes provisions for facilitating internal transfers to retain talent within the company. Siemens’ approach typically involves redeployment programs, reskilling initiatives, and mobility options to help employees move to other roles, minimizing job loss effects. However, explicit mention of these specific programs for Siemens was not found in the current search results.
In a positive development, more than half of the affected employees in Leipzig, where the job cuts are being made, have been offered an alternative position, and many even at the same location. Siemens is also working on cross-location cooperation of local works councils with the company side in hiring and transfers.
In addition to job cuts, Siemens is investing money into this transformation, with a focus on further training of employees. The company has announced that 11,000 employees will receive more money for less work in the future, as part of a change involving reducing weekly working hours by approximately 2 hours and increasing pay.
The transformation agreement, reached by Judith Wiese, Birgit Steinborn, and Jürgen Kerner, aims to actively shape rapid changes and find solutions without undermining co-determination. It also seeks to eliminate the old two-tier system affecting employees in Siemens branches and the unequal treatment of employees, as a result of the "collective agreement special agreement". Siemens has pledged to spend 50 million euros on the transformation fund over the next five years, primarily for further training.
The goal of this transformation is to maintain employees within the company, rather than accompanying them out with decent conditions. The workforce in total is expected to remain the same despite the job cuts. Siemens' commitment to its employees and its approach to the transformation underscores the company's resilience and adaptability in the face of challenging market conditions.
- Despite the planned job reductions, Siemens is implementing a strategy to improve employee wages and support affected employees during transitions, which includes negotiating with labor unions to secure wage deals and enhance internal mobility.
- Siemens' transformation approach involves redeployment programs, reskilling initiatives, and mobility options to help employees move to other roles, minimizing job loss effects, and this strategy is designed to maintain employees within the company, rather than accompanying them out with decent conditions.
