The austerity program is intended to reduce annual costs outside of production by 500 million euros.
(Photo: Reuters)
Frankfurt, Ludwigshafen The chemical union IG BCE has announced resistance to the planned cost savings of the industry giant BASF. “Announcing deep cuts at home locations while politicians and social partners are putting up a billion-dollar defense shield is not only disrespectful and disrespectful at the most, but will also meet our resolute resistance,” said IG-BCE chairman Michael Vassiliadis of the German press Agency in Frankfurt on Thursday.
Massive efforts are currently being made to minimize the consequences of the gas crisis for the energy-intensive industry, said the union boss, who, as co-chairman of an expert commission for gas and heat, had been involved in the proposals for a gas price brake.
What is needed now is security for employees, prospects for locations and not just management at the expense of third parties, says Vassiliadis, who also sits on the BASF Supervisory Board. “Apparently, the Management Board did not want to wait for the Supervisory Board meeting that was due to take place in a few days in order to explain itself. Now we will use it to forcefully make our position clear.”
The Ludwigshafen chemical company, which is under pressure in the gas crisis, wants to cut costs significantly. A savings program that will be implemented from 2023 to 2024 is intended to reduce annual costs outside of production by 500 million euros, BASF announced on Wednesday.
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More than half of the savings are to be realized at the Ludwigshafen site. The company, service and research areas as well as the corporate headquarters are to be streamlined, it said. Job cuts are not excluded.
In the third quarter, BASF earned significantly less than a year earlier because of the gas crisis and write-downs on the majority stake in the gas and oil group Wintershall Dea.
More: BASF reports slump in profits – chemical giant announces austerity program