Update: Union negotiations lessen impact of ContiTech hose unit restructuring

Frankfurt, Germany – ContiTech AG is laying off significantly lower number of people as part of its previously announced restructuring of its hose business.

The group disclosed the reorganisation programme in 2022 (ERJ report), with plans to consolidate operations of mobile fluid systems (MFS) business.

At the time, ContiTech said the restructuring was expected impact more than 900 employees across German sites in Waltershausen, Korbach, Northeim as well as the Oedelsheim/ Hannoversch Münden production network.

In a 15 March statement, however, trade union IGBCE said it had negotiated a deal with ContiTech to reduce the number of planned job cuts to 642.

“We agreed on innovative instruments that enabled a socially acceptable reduction in jobs,” said Michael Linnartz, IGBCE’s Conti Group and Hanover district manager.

The agreement, he said, “gives the opportunity to get by without compulsory redundancies and to offer the affected employees real alternatives and perspectives.”

The new 'instruments' include opportunities for partial-retirement, early retirement for employees aged 58 and over and use of the company's “internal labour market”.

The Continental Institute for Technology and Transformation (CITT) will also offer further training and qualifications for all employee groups.

Under the initial plan announced in 2022, ContiTech said it intended to consolidate operations of the Oedelsheim/Hann. Münden locations, spread across sites 25km apart, in Oedelsheim.

The Oedelsheim site, it said at the time, would focus on ‘silicon manufacture and charge air hoses’.

However, IGBCE said in its announcement that the Oedelsheim site had been closed down during the reorganisation process.

In response to ERJ query, Continental confirmed that it is closing the Oedelsheim site instead of the plant in Hann.Muenden.

"The change in decisions rooted in the necessary investments in the infrastructure for the preservation of Oedelsheim," said the company in a statement 25 March.

The continuation of Hann.Muenden, it went on to add, is more economical.