According to the German newspaper the "Schwäbische Zeitung", Diehl Controls will be letting go of 50 employees in its production plant in Wangen in southeast Germany. A severance package for the employees has already been put together by the works council and trade union IG Metall. This agreement was apparently signed on Tuesday and the employees have already been informed of the company’s decision. They now have the possibility to switch to a so-called transfer company that will be established November, 1 this year. The employees will continue to work in this transfer company for a full year and will receive 80% of their last net pay. Additionally the company will also provide them with a severance pay and partly send older workers into retirement.
Diehl Controls which has been trying to bridge the falling demand for a while now. Part-time employment has been undertaken since March this year and temporary contracts were also no loner extended. Flexible working hours were also introduced. Now, as the newspaper reports, Diehl Controls will focus on two key areas in their three manufacturing centers. As a consequence, the 50 jobs had to be terminated.
Early this year the management company Diehl Ako handed over the development, sales and services for its PV inverters division to Munich-based subsidiary Mutares. Dieter Neugebauer, CEO at Diehl Controls told the newspaper that this was the right move. "We do see though that we cannot produce a turnaround as quickly as we need to," he added.
Diehls Controls sees itself nevertheless as "economically stable". The company is pinning its hopes on the energy management systems segment for positive growth in the coming years. After the job cuts, Diehl Controls now has about 500 employees at its Wangen plant.
Translated and edited by Shamsiah Ali-Oettinger