Clariant to cut production, reduce working hours

TORONTO (ICIS news)--Clariant will freeze wages, cut back production and implement short working hours at selected production sites worldwide due to low demand, the Swiss specialty chemicals producer said on Wednesday.

“We are cutting production at those sites which are affected by slower markets, but only at those sites,” said Arnd Wagner, spokesman at Clariant’s head office in Muttenz, Switzerland.

The measures, prompted by low demand, would be implemented in accordance with local labour laws, said Wagner.

Wagner said the cuts were in line with Clariant’s previous warnings of difficult market conditions ahead and reflected the worsening environment in the chemicals industry.

Clariant produces at some 130 sites worldwide.

The company was taking a number of steps to mitigate impacts on staff, including extended holidays and vacations, and - where necessary - short-time working hours, Wagner said.

Clariant also decided to freeze wages and salaries in 2009, in so far as this was possible under local labour agreements and laws, Wagner added.

“The wage freeze will be implemented in accordance with local laws and collective agreements,” he added.

Swiss union Unia said Clariant’s wage freeze was not acceptable, as the company was creating facts before starting negotiations.

But the union also said it was willing to work with the company to help save jobs.