Schaeffler Employees to Start Short-Time Working
German news sources are reporting that Schaeffler Group is planning seems for most of its 25 German locations to work on short-time schedules for half a year. According to Tyres & Accessories’ German sister publication, Neue ReifenZeitung, the reports were confirmed by Schaeffler spokesman Detlef Sieverdingbeck on 2 February. The specific terms reportedly differ depending on location. The news mainly affects employees in the Automotive division, according to the Financial Times.
Meanwhile, at the end of last week Chancellor Angela Merkel reportedly turned down Schaeffler Group’s application for federal loan support. Schaeffler, the majority shareholder of Continental AG, is currently carrying around 22 billion euros of debt after taking over Conti. In an interview with Germany’s Bild newspaper, Merkel said: “We won’t pay the bill for risky company decisions.” For his part, Christian Wulff, prime minister of Lower Saxony, said the Schaeffler family and banks need to act before the government does anything. So while the chances of federal loan support are slim, the possibility of the regional government guaranteeing the 3 to 5 billion euros of new capital the company is said to be asking for, is not completely out of the question.