Heidelberg Negotiates Terms with Workers

HEIDELBERG, GERMANY—Heidelberg's corporate management has negotiated a new set of terms with its works council in Germany that will enable the press manufacturer to, among other things, reap a cost savings of 80 million euro by fiscal year 2011-2012.

The deal includes an agreement for German employees to forgo collectively agreed payments and company contributions, an option for Heidelberg to draw on additional working hours, and a progressive work time arrangement. Staff can voluntarily reduce their contractual working hours to 57 percent of the original level on a permanent basis, with a corresponding cut in pay. Heidelberg will provide compensation for part of the lost salary for up to four years. The working hours of staff adopting this scale will be based on company needs.