Schaeffler Chain Drive Systems Presents Plan for Financial Reorganization
Resource from: CBCC Likes:2943
Apr 17,2009
* Company to remain in business and 269 jobs have been saved
* Agreement on social compensation plan
Schaeffler Chain Drive Systems (SCDS) has today reached an agreement with employee representatives on a social compensation plan. This has cleared the way for conducting state financial reorganization proceedings (“Redressement Judicaire”), which are to save the company and secure a total of 269 jobs.
After intense and constructive talks, employee representatives and SCDS agreed upon improvements to the social compensation plan that were first made possible due to support from the Schaeffler Group, the parent company of SCDS. This agreement means it has also been possible to reduce the number of redundancies again.
The reorganization plan now involves the loss of a total of 195 jobs as well as transferring production to Calais from the plant in St. Siméon de Bressieux, which specializes in producing oil pump chains.
“The decision wasn’t easy for us. However, there was no alternative in order to save the company and jobs", explained Marc Becker, Managing Director of SCDS.
SCDS manufactures primary chains for engines and is wholly dependent on customers from the automotive industry. Demand has decreased by up to 50% during the last few months. “We can secure the survival of SCDS by adapting our manufacturing to meet demand”, said Marc Becker.
According to the reorganization program, 269 jobs will be saved at the Calais location and manufacturing will continue. A total of 195 jobs will be cut in a socially-responsible manner. The employees affected will receive severance pay and support for reintegration into the job market as well as assurances that they will receive preferential treatment for a period of three years for new appointments in the company.
“We have now established the basis for quickly conducting the reorganization so that we can continue to supply our customers who support us", explained Dr. Peter Pleus, President Engine Systems Division of the Schaeffler Group, who expects production to resume swiftly. Agreement from the workforce for taking up production still needs to be reached.
SCDS was newly founded in 2006 based on an asset deal comprising two partial divestitures. This required fundamental restructuring and reorientation. This process was on the right track. For example, it was possible to significantly reduce losses in the last three years. However, the dramatic economic downturn ruined these restructuring efforts.
A fundamental improvement in the situation is not in sight and a negative impact on incoming orders and sales must be expected. Since SCDS was no longer able to bear these costs alone, it initiated steps at the beginning of March for conducting state financial reorganization.
SCDS generated sales of around #8364; 64 million in 2008.
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
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