HMR bid to calm workers over merger study leak

22 February 1999 11:57  [Source: ICIS news]

LONDON (CNI)--Hoechst Marion Roussel (HMR) told CNI on Monday that urgent talks are planned with French workers to calm fears over job cuts following a leaked consultant's report about how its German parent group could merge with France's Rhone-Poulenc (R-P).

A spokesman for HMR in Paris said a meeting between management and workers has been planned for Tuesday (23 February). The move follows protests late last week by hundreds of employees from HMR and R-P's neighbouring plants. Hoechst and R-P plan to create a life sciences merged operation called Aventis.

Workers have been worried over reports leaked last week from a study carried out by US consultant Monitor. The study reportedly told of 11 000 job cuts, more than half the companies' plants being closed or sold in countries like Australia, Mexico, Puerto Rico, South Africa and the UK. The reports told of six plants in France being sold and the Romainville R&D facility being phased-out. The study was also reported to say Aventis would concentrate on areas such as anti-allergy drugs, anti-infectives, the central nervous system and cardiovascular but pull back from bone, rheumatology and asthma therapies.

However, the HMR spokesman said: "No decision has been taken about sites or employees".

He confirmed to CNI that the Monitor study was only one of many early studies into possible ways a merger may happen, and that it does not contain official figures.

A number of task forces have begun to investigate the best cost savings and restructuring options for the merger. He said the various task forces are expected to report from March onwards, but HMR said last week that no final decisions are expected before July.

R-P said consultations with workers and unions over the merger began a week ago and are due to end 23 March.

By: Patrick Reynolds
+44 208 652 3214

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