Trade union says ContiTech divestment ‘socially irresponsible’

Hanover, Germany – German trade union IGBCE has criticised the planned divestment of ContiTech, Continental AG’s materials and industrial arm, as a standalone business entity. (ERJ report)

The separation at the time of global economic uncertainty is “socially irresponsible, economically foolhardy, and technologically nonsensical," said Francesco Grioli, member of IGBCE executive board and the Continental supervisory board.

The process, he argued, involves tearing apart two business units which he said “have formed the heart of the long-established group for decades."

The two divisions, Grioli added, "are closely intertwined, especially at the beginning of the production chain.”

Stating ICBE’s ‘resolute opposition’ to the plan, Grioli criticised the higher annual dividends, which he said are 'bleeding the company dry'.

Grioli called for long-term job and site security, as well as an "investment offensive" for ContiTech, as agreed with the company management two years ago.

Without guarantees and reliable job security, Grioli said the union would not agree to the spin-off.

“As employee representatives [we] will use all means at our disposal to prevent potential buyers from making a clean sweep of jobs in Germany," Grioli added.