Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Ball bearing manufacturer FAG Kugelfischer plans to cut about 1,000 jobs in Germany due to tough international competition, said chief executive Robert Schullan. FAG, which belongs to the INA Gruppe, will close a factory in Eltmann (Bavaria) by 2006, which employs some 673 workers. An additional 356 jobs will be shed in Schweinfurt in the medium term. FAG also plans to scrap bonuses, and to make working hours more flexible. FAG Kugelfischer announced on 25 October 2004, an agreement with trade unions regarding a new pay deal. Management has committed itself to refraining from laying off any staff until 1 January 2006, but will be able to cut 300 jobs at each of the two production plants in Eltmann and Schweinfurt via part-time and retirement arrangements. The group also guarantees that it will continue to operate all its four German production plants until at least 2008. It will relocate a major part of its production at the Eltmann plant (this plant produces components for standard ball bearings, which have no chance to survive in Germany due to the enormous international competition and also due to the large discount campaigns of car makers, which exert pressure on suppliers) and introduce a new production line from its parent company, German car parts maker INA Waelzlager Schaeffler oHG. Management has refrained from introducing an unpaid extension of the working hours at the four plants.
Eurofound (2004), FAG Kugelfischer, Relocation in Germany, factsheet number 60565, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/60565.