Short-time work to be introduced by BASF at Ludwigshafen

19-May-09

Deteriorating global demand amid an economic downturn has urged BASF to consider introduction of reduced work hours. BASF plans to introduce short-time work by between 20 and 100% at 20 production plants and associated service units at Ludwigshafen for up to 4 months. About 1,000 employees at the pigments, intermediates, petrochemicals and inorganics units, will be affected by this decision to be implemented in a couple of months. Based on an assessment of workload at the production plants and the provisional agreement made with the works council in January, discussions with the responsible employee representatives were held to determine where short-time work should be introduced. The duration of the shortened hours will depend on the circumstances at the individual plants. Irrespective of the reduction in working hours, employees will receive a net wage of approximately 90% as a result of short-time work compensation provided by the German government as well as a payment from the company under the terms of the collective wage agreement for the chemical industry.