Deliver Your News to the World

Siemens Business Services and IG Metall reach supplementary wage agreement


Munich, Dec 15, 2006 - The turnaround program at Siemens Business Services (SBS), being implemented since September 2005, has been given a boost: Management and the General Works Council have reached a supplementary wage agreement with the IG Metall union. As announced previously, the agreement will reduce the costs associated with maintaining a workforce of 9,000 people in Germany by €100 million.

For tariff employees, working hours will be increased and both vacation pay and a proportional share of the thirteenth month salary will be converted into variable income based on the financial performance of SBS. Non-tariff employees will contribute with an adjustment of their variable income. “In constructive talks with the IG Metall union and Siemens workers’ representatives, we agreed that all employees contribute a fair share,” said Dr. Jürgen Radomski, Chief Personnel Officer of Siemens AG. “This will enable us to secure jobs in Germany.”

Parties in the talks on the supplementary wage agreement expect no layoffs to be necessary during the term of the agreement. The agreement will go into effect on February 1, 2007, and, for the most part, conforms with the employment conditions that currently apply to employees of Siemens Region Germany. January 17, 2007, was set as the declaration deadline.

SBS has been implementing its turnaround program since September 2005. The program calls for increasing productivity by €1.5 billion within two years.
The €100 million cost reduction – now possible with the supplementary wage agreement – is a significant part of the program.

"With this result we are creating a good basis for our ability to compete and our lasting success,” said Dr. Christoph Kollatz, Group President of SBS.

In January, SBS will merge into the new Group Siemens IT Solutions and Services (SIS). The supplementary wage agreement just concluded for SBS employees in Germany will remain in effect in the new organization. “We can now continue our planning for the new Group without constraints,” said Dr. Christoph Kollatz, who will become the Group President of SIS in January.

Siemens Business Services is an internationally leading IT service provider. This Siemens Group offers services all along the entire value chain – from consulting to systems integration, right through to the management of IT infrastructures. Thanks to its comprehensive know-how and sector-specific expertise, the company provides measurable added value for its customers. With regard to outsourcing, Siemens Business Services is among the top ten providers worldwide. With around 34,000 employees, the Group posted sales in fiscal 2006 (ending 30 September 2006) of EUR 5.2 billion, 75 percent of which was achieved outside the Siemens organization. Further information at:

Reference number: SBS 151206.53e


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.