German chemical company BASF AG has announced that an agreement was signed on Tuesday November 23 in which management and employee representatives outlined strategic changes at the company’s Ludwigshafen site in order to ensure the facility’s future. The plan involves shedding about 3,600 jobs at the site (approximately 10% of the workforce) by 2007 as a part of efforts to ensure competitiveness. However, the cuts will not be made through enforced redundancies. This target value of 32,000 employees and the avoidance of enforced redundancies will continue to apply until 2010.
The employee representatives have deemed the move acceptable as Robert Oswald, Chairman of BASF's works council in Ludwigshafen commented: "We are pursuing a responsible policy, and - like the Board of Executive Directors - we are helping to safeguard the jobs of tomorrow and beyond," he said.
Up to 2009, BASF plans to invest a total of €6 billion in capital expenditure, modernisation and plant maintenance at the Ludwigshafen site. This corresponds to an average of €1.2 billion per year. In addition, €700 million will be spent on research and development.
