BASF Coatings lifts short-time work in Germany

06 October 2009 19:48  [Source: ICIS news]

TORONTO (ICIS news)--BASF Coatings has suspended short-time work at its production hub in Munster, Germany, where it employs a staff of 2,250, due to improved orders, it said on Tuesday.

However, while orders have improved, BASF’s coatings business was still below last year’s levels and the outlook remained uncertain, spokesman Michael Golek said.

The company was receiving orders, but customers had shifted to placing smaller order sizes, instead of large volumes, he said.

In coatings, producing and handling smaller-size orders required about the same staff levels as working big volume orders, he added.

BASF Coatings's application for government-subsidised short-time work lasts through January and the company could not rule out that some workers may again need to be put on the programme in coming months, Golek said.

The company started introducing short-time work in February 2009, initially putting almost 2,000 workers on short-time work. The number varied from month to month. In September, 900 workers were still affected, Golek said.

Many German chemicals producers resorted to short-time work this year. The programme enabled them to cut working hours while maintaining staff levels during the economic crisis.

Germany’s chemicals production is expected to fall by 10% and sales by 12% from 2008, according to chemical producers association VCI.

Germany’s overall economy is expected to shrink by less than 5% from 2008, much lower than the decline of over 6% economists predicted earlier in the year.

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By: Stefan Baumgarten
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