The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale Via Stalls And Markets Or Other 47.91 - Retail sale via mail order houses or via Internet
620 jobs Number of planned job creations
Announcement Date
5 February 2009
Employment effect (start)
Foreseen end date
31 July 2010
Description
The German mail-order shopping company Otto is to restructure its European logistics division which currently employs 7,800 employees. Logistics will be centered at Haldensleben and Burgkunstadt in Saxony-Anhalt, at Hanau (Hessia) and at Pilsen (Czech Republic). The company announced that 620 new jobs will be created in Haldesleben (Saxony-Anhalt). Restructuring plans also envisages the loss of 724 jobs in Germany (Hamburg, Hanau, Würzburg) and 270 jobs in Austria (Graz). In Germany, 590 jobs are set to be cut at the Hamburg site, 100 jobs at the Hanau site and 34 jobs at the Würzburg site. Due to a collective agreement there will be no direct dismissals at the Hamburg site before 2010. Workers affected by the jobs cuts in other cities have privileged access to the new jobs (internal labour market) if they are willing to move.
According to Frankfurter Allgemeine, Otto will save costs to impove the competitiveness of its logistics division. Changing the pay structure is one of the options. Whereas Hamburg is covered by the collective wage agreement concluded in the retail sector, the new sites are covered by a collective agreement concluded in the logistics sector. Concluded wages in logtsics are lower than concluded wages in the retail sector.
Sources
5 February 2009: Financial Times Deutschland
5 February 2009: Frankfurter Allgemeine Zeitung
Citation
Eurofound (2009), Otto, Internal restructuring in Germany, factsheet number 68080, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/68080.
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