28 February 2007 16:41 [Source: ICIS news]
LONDON (ICIS news)--BASF’s transformation into a European Company (Societas Europeae – SE), will not affect employees and co-determination rights will continue to be endorsed a company spokesman said on Wednesday.
He added that the SE status would however allow people from other countries to sit on the supervisory board.
In response to the BASF announcement on Tuesday, the German chemical union IG BCE had said that employees’ co-determination privileges, in particular the right to appoint half the supervisory board members, including the deputy chairman, should not be diluted.
The union added that its representatives on the current BASF board had voted in favour of becoming a Societas European only under this condition.
In cooperation with the European Federation of Mining, Chemical and Energy unions (EMCEF), IG BCE said it will closely monitor the conversion process.
Under the German co-determination rules, BASF has become the chemical industry’s most competitive company, the union remarked.
BASF did not comment on how it might gain financially from its European company status. When SE’s were introduced in 2004, the EU said administrative cost savings of up to €30bn ($39bn) could be possible each year across ?xml:namespace>
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