Siemens' Job Security and Transformation Fund: A Plan for Employee Stability and Corporate Evolution - Commission's assessment reveals no determination yet on whether the aid aligns with the internal market rules.
Siemens, the German engineering conglomerate, has announced a significant change in its workforce, with the termination of an agreement affecting service locations and a pay adjustment for over 11,000 employees.
According to Judith Wiese, personnel manager at Siemens, the agreement no longer justifies its existence due to changes in qualification profiles over the past 20 years. The agreement termination, which is mainly focused on service locations within Siemens AG, is not related to earlier job cuts or the transformation agreement mentioned in previous bulletins.
The pay adjustment aims to reduce weekly working hours by nearly two hours and increase pay for the affected employees. Jürgen Kerner, second chairman of IG Metall, confirmed that this is about reducing working hours and increasing pay for the affected employees.
Siemens has agreed to allocate funds to offset the termination of the agreement, with the funds to be used to support the affected employees. More than half of the affected employees in Leipzig, where 160 jobs in loading solutions are being eliminated, have been offered alternative positions within the same location.
Birgit Steinborn, chair of the works council, stated that the focus is on supporting transfers and offering financial incentives for affected employees. IG Metall, a significant trade union in Germany, is involved in the agreement termination and the allocation of funds, but no specific role is detailed.
Siemens is also making strides in other areas, with a focus on financial and sustainability, digitalization, and AI partnerships. For example, their partnership with NVIDIA aims to empower companies by leveraging AI for next-generation factory automation. Siemens Energy has innovation centers focused on energy transition technologies, highlighting the company's commitment to innovation and sustainability.
It is essential to note that no information was provided about the impact of these changes on the overall company budget or financials. For detailed information on the Transformation Fund or related agreements, it might be beneficial to consult official Siemens AG communications or contact them directly for the most accurate and up-to-date information.
In light of the agreement termination at Siemens AG, funds will be allocated to support vocational training programs aimed at enhancing digital skills within the community. Furthermore, the company is enhancing its focus on technology, as demonstrated by its partnership with NVIDIA for next-generation factory automation using AI.
