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LABOUR

Sweden’s SKF to cut 2,500 jobs worldwide

Swedish ball bearings manufacturer SKF announced on Tuesday that weakening demand in the automotive and industrial sectors has forced the company to trim its global workforce by 2,500 jobs.

Published: 10 December 2008 08:55 CET
Sweden's SKF to cut 2,500 jobs worldwide

While the company projects volume to decrease by 15 percent compared to last year, SKF still expects to report a fourth quarter operating profit between 1.6 and 1.7 billion kronor ($196 to 208 million).

While no jobs will be lost in Sweden, around 1,200 full time positions will be cut mainly in SKF’s Automotive Division, primarily affecting operations in the United States, France, Italy, Ukraine, Brazil and Argentina.

In addition, SKF plans to terminate contracts with 1,300 temporary employees and to place about 2,400 other employees an shorter working hours by the end of the quarter.

“The negative development within the automotive business has accelerated during the fourth quarter leading to significantly weaker demand than foreseen. Many customers have reduced production and are taking an extended shutdown period in December and January,” said SKF in a statement.

The company added it expects the cost of the restructuring efforts to cost around 470 million kronor, with 340 million kronor to be charged in fourth quarter.

RYANAIR

Ryanair cabin crew in Germany back labour deal

German cabin crew have approved a proposed labour agreement hashed out with Irish low-cost carrier Ryanair, the Verdi union said, ending months of deadlock and strike threats over better pay and conditions.

Published: 13 November 2018 23:08 CET
Ryanair cabin crew in Germany back labour deal
A Ryanair plane at an airport in West Rhine-Westphalia. Photo: DPA

The influential Verdi union said members voted “by a large majority” on Tuesday to back a deal struck with Ryanair management last week that will raise crews' basic salary by €600 a month, alongside other pay increases and guaranteed working hours.

The deal, which still needs to be finalized by the end of the month, also switches German staff from Irish to local labour contracts, addressing a key gripe among Ryanair staff across Europe.

Verdi board member Christine Behle hailed the outcome as “a great success” and praised Ryanair cabin crew for “fighting for their rights”.

But she condemned Ryanair's refusal to accept a so-called works council, a body within a company that represents workers and an important feature in Germany's corporate world.

The labour agreement does not apply to Ryanair pilots, who are being represented by German cockpit union VC.

The hard-fought deal comes after German cabin crew joined a pan European walkout in September they say forced Ryanair to cancel more than 190 flights. 

SEE ALSO: Almost 40 percent of Ryanair flights in Germany cancelled

A 24-hour strike by German cabin and cockpit crew earlier that month also forced the cancellation of 150 Ryanair flights.

Ryanair only began recognizing unions for the first time in its 30-year history last December, to avert mass strikes during the busy Christmas period.

It has since been hit with a wave of industrial action that has dented profits.

The budget carrier has so far managed to clinch labour agreements with staff in several countries including Britain, Portugal and Italy.

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