Talks Between Siemens Energy And Union On Job Cuts End With No Deal

Negotiations on the planned cut of around 2,900 jobs at Siemens Energy in Germany have failed, the IG Metall trade union and the company said, Deutsche Presse-Agentur (dpa) reported.

Despite intensive efforts, the two sides "did not get through the door," the trade union said. The company added it is now referring the issue to an arbitration committee, composed of an equal number of employee and employer representatives, to reach a final settlement.

Siemens Energy declined to give further details. Siemens Energy was spun off from the German engineering giant Siemens last year. The company has been on the DAX stock market since March but faces big challenges due to Germany's shift to green energy.

Besides wind energy, the company also supplies products and maintenance for electricity from fossil fuels.

Robert Kensbock, the head of the workers council, said both sides had "approached each other on many issues."

He added: "On some content, however, the company side is insisting on its reduction targets, without seriously examining alternative proposals of ours."

IG Metall board member Juergen Kerner said he had the impression that the issue for the board of Siemens Energy was not just savings but also the fundamental aim of "downsizing in Germany and relocation abroad."

In early February, the company had announced plans to cut 7,800 jobs worldwide. Just days earlier, Siemens Energy had reached an agreement with employee representatives on the restructuring of the company, preferably without having to close any location and with as few forced lay-offs as possible.

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