09 October 2009 19:20 [Source: ICIS news]
TORONTO (ICIS news)--Bayer will restore weekly working hours and salaries to normal levels for 4,100 workers at its Bayer MaterialScience polymer and plastics business in Germany, effective 1 November, due to improved order levels, the company said on Friday.
But despite the improved orders, the business outlook remains uncertain, a company executive said in explaining the decision to restore the normal 37.5 hour week.
In February, Bayer resorted to a clause in its collective agreement to cut hours and wages by 6.7% in the midst of the economic crisis.
Unlike many other firms, the company had avoided Germany's government-supported short-time work schemes, since those would have primarily hit production workers. Bayer's cuts included upper management, it said, adding that there would be no salary increases this year.
Bayer MaterialScience, which employs a staff of 15,000 worldwide, would also reverse reductions and cuts at its sites outside ?xml:namespace>
Meanwhile, a number of other German chemicals producers have ended or suspended earlier reductions in hours under short-time work programmes, as business has stabilised and improved.
German industrial orders have increased in recent months, consumers remain confident and economic sentiment indicators are picking up. However, industrial orders and production are still down by over 20% from last year and industry capacity utilisation remains low.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|