Agreement reached at Siemens in Prague

27.08.2008

Agreement reached between Siemens and union on redundancy provisions for possible plant closure next year.

CZECH REPUBLIC:  An agreement was reached on August 25 between Siemens AG and the trade union OS KOVO on redundancy provisions for workers at the Siemens SKV plant in Prague, which is planned for closure next year.

The agreement includes provisions such as:

  • If the plant does close, Siemens will offer severance pay equal to 16 months salary (average wage). This is only if the employee does not resign beforehand,
  • In August 2008, employees will receive a special payment of CZK15,000 (EUR 612), if they do not resign beforehand,
  • Starting in August, employees will receive incentive bonuses amounting to 35 per cent of their monthly wage (average wage). These bonuses will grow by a further five percentage points each month until June 2009 (35%, 40%, 45%,...60%),
  • SKV will ensure the qualification of the employees. Qualification-improving measures of up to three months will be financially supported,  
  • In case SKV is sold, the company will pay every employee a transfer bonus equal to three months wage (average wage), and
  • During the selling process SKV will regularly and timely inform and consult the trade union on that matter.

The negotiation group of Siemens AG representatives and OS KOVO representatives still have to negotiate the details of individual issues mentioned in the Framework Agreement so that they are in accordance with the Czech Legislation.

The agreement followed a warning strike by the workers on August 20 and international solidarity support from unions with members in Siemens elsewhere in Europe.