FOKUS efficiency programme: agreement reached with employees on package of measures
EnBW also brings forward targeted improvement in EBIT of €750 million by one year
Karlsruhe. EnBW has taken an important step toward maintaining its good credit rating and thus its financial headroom. As part of the group-wide FOKUS efficiency programme, agreement was reached with employee representatives on Wednesday on a number of important fundamental points. As a result, a total of 1350 jobs within the group will be cut in a socially compatible manner. In addition, the Board of Management of EnBW has resolved to accelerate the efficiency project in order to achieve the FOKUS target of sustainably increasing EBIT by €750 million one year earlier than first envisaged. Originally, it was planned to develop all the efficiency measures in full by the end of 2014, after which they would start to take full effect on earnings.
EnBW’s acceleration of its efficiency programme is the logical response to the persistently difficult general and market conditions in the energy industry. The sustainable improvement in EBIT of €750 million is key to creating a solid financial foundation for the company’s future development and ensuring it can prepare for the future.
For EnBW, the agreement reached with the employee representatives not only reflects the traditionally good social partnership at EnBW, but also confirms that the measures introduced are necessary and correct.
Various instruments are available for socially compatible job cuts within the company, such as phased retirement and severance packages. Of the total of 1350 jobs involved, 1040 are in support and central functions, and 310 in operational functions and along the value added chain. In addition, it was agreed to reduce the profit participation for employees by an average of 18 per cent of one month’s salary in the coming three years.