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.
The German mail-order shopping company Otto is to restructure its European logistics structure which employs a workforce of 7,800. Plans foresee to cut a total of 1,000 jobs in Germany (Hamburg. Hanau, Würzburg) and Austria (Graz). The Austrian site will be closed; 270 workers are to lose their jobs. According to the works council, a planned closure of the Hamburg site is not to be realised. However, at Hamburg 590 jobs shall be cut, at Hanau 100 jobs and at Würzburg 34 jobs. Due to a collective agreement there will be no direct dismissals at the Hamburg site before 2010.
Logistics will be centered at two sites in East Germany (Saxony-Anhalt), at Pilsen (Czech Republic) and at Hanau (Hessia, Germany). Restructuring and relocation will include the creation of 620 jobs in Haldesleben (Saxony-Anhalt). Workers affected by the jobs cuts in other cities have privileged access to these jobs (internal labour market) if they are willing to move.
According to Frankfurter Allgemeine, Otto will save costs to improve the competitiveness of its logistics division. Changing the pay structure is one of the options. Whereas Hamburg is covered by the collective agreement concluded in the retail sector, the new sites will save costs by paying wages concluded in the logistic sector.
Eurofound (2009), Otto Logistics, Internal restructuring in European Union, factsheet number 68079, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/68079.
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