FAG Closing Eltmann Plant, Other Cutbacks Hit Germany(pic)

FAG Kugelfischer (Germany, with INA, bearing manufacturing divisions of INA Holding, Germany) announced deep cutbacks -- more than 1,000 jobs lost -- across its operations and offices in Germany. In addition, the company said it will seek more flexible schedules from its production workers and to reduce various overtime and compensatory pay scales. The announcements were made following a meeting of FAG's executive committee. a nighttime demonstration in Eltmann: The bearing factory in Eltmann will be phased out and closed by 2006, with the loss of 671 jobs. FAG said Eltmann's production will be shifted to lower cost plants in eastern Europe, specifically Romania. FAG Chairman, Robert Schullan, said the Eltmann bearing plant's production is being shifted to unspecified plants in eastern Europe. Despite significant advances in quality and efficiency at the German facilities, he said, worldwide competitive pressures and the costs of doing business in Germany have ultimately rendered Eltmann's bearings uncompetitive. FAG's former rolling element factory in Eltmann, now part of NN Euroball ApS, is unaffected as yet. However, once the nearby bearing plant is shuttered, most would question the need for a rolling element factory to remain in Eltmann. Nighttime candlelight protest in Eltmann (courtesy IG-Metall) In addition to the Eltmann closing, FAG will be cutting over 356 employees from its home office operations in Schweinfurt. The company did not indicate what types of positions would be cut. FAG is also seeking to cut overtime and compensatory pay, which would impact most workers' paychecks. In addition, FAG wants a standard work year to be defined plus or minus 250 hours. Citing the need to act decisively as competitive pressures mount, Mr. Schullan said, "We are not in a crisis situation, but we can react only if it is not too late." With the adjustments it seeks, FAG said the other 6,200 jobs in Germany will be more secure. Worldwide, FAG employs over 17,600 people. The company's work councils and union, IG-Metall, vowed to resist the cutbacks and work rules changes. IG-Metall head, Werner Neugebauer, said, "We will fight for every job in Eltmann and Schweinfurt, and against income cuts." Mr. Neugebauer also said IG-Metall would do what it could to stop the company's process of putting each individual INA and FAG plant in competition with one another for the opportunity to produce particular bearings. IG-Metall orchestrated demonstrations in Schweinfurt: 3,000 protest in Schweinfurt (courtesy IG-Metall)