W+D agrees on restructuring program. Personnel adjustments in Neuwied

Winkler+Dünnebier AG (W+D), Neuwied, Germany, has reached agreement with the IG Metall labor union and Works Council on a viable solution to restructure and refocus the company. In February 2009 the Supervisory Board asked the Management Board to implement a concept to secure the future of the company in the light of the poor sales trend and order intake. All available labor market tools will be used to cushion the impact on employees and enable the company to respond fast and flexibly when the economy picks up.

The main elements of the restructuring and refocusing comprise:

• Establishing a lean process- and project-oriented organizational structure with a clear focus on core processes
• Strengthening the innovative capability of W+D
• Raising revenues through a sales and service drive
• Focusing on key technological competencies and transferring them to new business areas where possible
• Adapting capacity and cost structures.

In response to the economic and structural causes of the present crisis, the company will be using a combination of short-time working, socially acceptable measures such as early retirement and phased retirement programs, and shedding up to 146 jobs.

In addition, 118 employees are to be placed on 100 percent short-time working until the end of 2010. These employees will be transferred to a pool from which they can be recalled when the order situation improves or to undertake specific projects and functions. 

All of these measures relate to the company’s headquarters in Neuwied, Germany. Capacity adjustments have already been made at W+D’s subsidiary in the USA. The automation systems specialist W+D-Langhammer acquired last year is continuing its positive development, so no action is planned there.
The employees affected by the job cuts will be offered the opportunity to remain employed in a special transitional company for a one-year period. During this time they will receive individual coaching, training and support in the search for a new job.

Expenses for short-time working and personnel adjustments will be around €6 million. Depending on economic developments, W+D aims to break even in 2010. In the first four months of this year, order intake was €24.1 million, down €4.1 million year-on-year. The company made a pre-tax loss of €4.3 million in this period and expects to report a perceptible loss at year-end. The half-year results will be published on August 13.