Restructuring events
European Restructuring Monitor (ERM)
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.
US-based automotive supplier Federal Mogul will cut 120 jobs in Blumberg (Baden–Wuerttemberg). Job cuts are due to high unit costs and internal restructuring as the company wants to become more competitive. The pan is thus to develop this plant into a worldwide competence centre for the production of hollow valves and to ensure its future success in the long run.
The executive board has already reached an agreement with the works council on the restructuring programme. However, employees are exasperated as most of the affected workers are permanent employees whereas 20 to 25 temporary agency workers can stay. According to the management this workforce is need to cover for absences due to long-term disease or maternity leave.
Originally, 150 jobs should be cut, however, labour union IG Metall made demands for a reduction of these figures. Federal Mogul currently employs 7,000 employees in Germany and about 50,000 employees worldwide.
Eurofound (2016), Federal Mogul, Internal restructuring in Germany, factsheet number 86523, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/86523.