FRANKFURT, Germany (July 2, 2007) — Group Michelin will invest nearly $340 million over the next five years in its German factories after the labor union representing workers there agreed to a 75-minute increase in the average work week to 39 hours.
Michelin Reifenwerke K.G.a. and the IG BCE labor union signed a five-year agreement recently designed to secure employment at Michelin´s five tire factories in Germany and ensure they do not slip down the productivity league, a Michelin spokesman said.
While the work week will increase, the weekly wage will not change, the spokesman said.
This deal is strictly for its operations in Germany and is not part of a pattern or a precedent for other countries, he added.
Michelin has five plants in Germany—for passenger and light truck tires in Bad Kreuznach and Hallstadt and truck tires in Homburg/Saar and Karlsruhe and bead wire in Trier—making 17 million units/year and employing 5,600.
The spokesman said it was not possible to break down the investment by factory or by product type any further.
Michelin CEO Michel Rollier first proposed the plan last October at a ceremony in Frankfurt to mark Michelin's 100 years of activity in Germany.