Workers threaten Continental AG over job cut plans

Hanover, Germany (Reuters) -- Workers at Continental AG threatened to back out of 10 labour deals, saying it could cost the German auto parts maker 42 million euros, if it did not abandon plans to cut jobs in Hanover.

Works council boss Baerbel Bruns said on Wednesday that CEO Manfred Wennemer had until the supervisory board meeting on Dec. 14 to decide, or the council and German trade union IG BCE would examine possibilities to terminate the agreement.

"That is a threat," she said, referring to a potential 42 million euros in added costs estimated by IG BCE.

Continental announced last week that it would shut passenger car tyre production in its Hanover-Stoecken plant by the end of 2006, resulting in 320 layoffs.

The decision made use of an exit clause in an existing deal management had struck with the works council that would extend working hours to 40 per week from 37.5 without resulting compensation.

A spokesman for Continental said he expected employees to respect existing agreements and added that the company could not explain where the IG BCE came up with the 42 million euro figure.

"Apparently it came from thin air," he said.

From Automotive News (A Crain publication)