Construction of Ships - Meyer Werft faces crisis with over 400 jobs on the line.
The famous shipyard Meyer Werft is going through a difficult restructuring phase. Chief restructurer Ralf Schmitz revealed this during a meeting with workers in Papenburg. The company is facing a crisis, he stated, and layoffs of about 440 jobs across the group are being planned.
Located in Rostock and Turku, Finland, Meyer Werft's main workforce is based at their Emden headquarters, which currently employs around 3,000 people. Lower Saxony's Economics Minister, Olaf Lies, has expressed his concerns. Andreas Hensen, the works council chairman in Papenburg, termed it a shock.
The company is compelled to cut costs urgently. The Corona pandemic's effects and the escalating prices in recent years have led to substantial losses. According to Schmitz, "the shipyard is plunging into an overcapacity situation due to Corona, and by 2024/25, work will be in short supply." There's a dire need for financing.
Meyer Werft's order book is still full. Currently, there are orders for six cruise ships, a research vessel, and the steelwork for four offshore converter platforms. Due to the pandemic's initial impact on tourism, these orders were rescheduled by mutual agreement with the customers. Schmitz explained that these ships were priced before the pandemic. "The shipyard needs a lot of money and liquidity to regain stability."
The main objective is to make the company profitable again. By 2027's end, management aims to achieve a sustainable result. Negotiations on job cuts will now commence with the works council and IG Metall.
Works Council: Employees should not suffer for management mishaps
Andreas Hensen, the works council chairman, objected to employees bearing the consequences of management's mistakes. According to Hensen, the workforce had given a lot to the company in recent years, working unpaid overtime worth an estimated 40 million euros. "They gave their best, and we believe that's enough. We can't continue placing this burden on our colleagues," he said.
Schmitz's plans to save 33 million euros can also be achieved through other means, Hensen added. "The management needs to listen to the workers on the ground." Every single job at Meyer Werft should be saved.
The planned personnel cuts would severely impact the affected parties and the region. The situation is critical, but a hasty reduction in staff is not a solution, argued IG Metall Coast's district leader, Daniel Friedrich. "Investing in a future concept with personnel reductions and cutting corners is not a smart approach. We will fight to secure the future of all employees," he concluded.
Economics Minister Lies: An ill-timed cut in staff
Lies plans to closely scrutinize the restructuring plans announced by Schmitz. Although Meyer Werft has a promising future, it's in a precarious situation. He added, "Discussions about quickly laying off employees are not the right approach. I expect suggestions to be proposed that prioritize the needs of the employees."
Such a Staff reduction would be a significant blow to Papenburg's location. "The Meyer Werft's significance as an employer and a global leader in cruise shipbuilding makes it a vital part of the region," said Lies.
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