Michelin Germany wins productivity for jobs deal

Frankfurt, Germany - Michelin Germany and the IG BCE union have signed a five-year agreement designed to secure employment at Michelin's five tyre factories in Germany and ensure they do not slip down the productivity league, said a Michelin spokesman.

In exchange for a small increase in the working week, Michelin guarantees jobs for its employees in Germany and commits to invest at least €250 million between 2007 and 2012. The spokesman said this deal is strictly for its operations in Germany and is not part of a pattern or a precedent for other countries.

The work week will increase by 75 minutes a week, up to 39 hours, but the weekly wage will not change. In exchange, Michelin has said it will invest in its five German factories to maintain efficiency, productivity and quality and thus secure employment.

Michelin has five sites in Germany making 17 million units/year and employing 5600 staff. The factories are located in Karlsruhe, Homburg/Saar, Bad Kreuznach, Trier and Hallstadt. The truck tyre plant at Homburg will benefit from investment in Michelin Durable Technologies, and this will be part of the €250 million spend, said the spokesman. The spokesman said it was not possible to break down the investment by factory or by product type any further.