LEVERKUSEN, Germany (Feb. 2, 2009)—Lanxess A.G. has put together a global package of measures to mitigate the effects of weak demand worldwide, including a 35-hour working week with a corresponding remuneration decrease.
The shortened work week will begin in March for 12 months initially, and Lanxess will not pay bonuses to 5,000 German nonmanagerial employees in 2009.
The company said it had agreed to the measures after holding negotiations with employee representatives and the IG BCE, the German Mining, Chemical and Energy Industry Union.
Axel C. Heitmann, chairman of the board of management, said customer demand, especially in the automobile and construction industries, remained weak in January and is not expected to radically improve going forward.
The board of management said it will take a 10 percent pay cut, while other management level staff will have varied salary adjustments, and their annual fixed salary reviews for 2009 will be postponed by at least six months.
Salary reviews worldwide also will be postponed by at least six months. In some countries, salary increases will be postponed by 12 months. Measures to lower personnel costs will be agreed upon according to the respective country conditions.