By Lily Bearings
©2004-2008
The Schaeffler Group (Germany, parent of INA, FAG and Barden bearings) announced an aggressive cost-cutting program that potentially puts all 25 of its German facilities on four-day workweeks.
The move was prompted by continuing weakness in the overall economy, and particularly by demand from the auto industry, where Schaeffler gets 60% of its sales.
Approximately 20,000 of Schaeffler's 31,000 employees in Germany are potentially affected. However, a few facilities will not be included, specifically those involved in producing industrial bearings and for markets which remain relatively strong.
Schaeffler hopes that by reducing hours by 20%, it will be able to avoid going through the rounds of layoffs which have been plaguing other manufacturers. Last October, the company eliminated virtually all of its 4,000 temporary and contract workers.
Spokesman Detlef Sieverdingbeck said Schaeffler expects the shortened workweek program to be in place for the next six months.