Germany: Arcandor employees will see their annual wages decrease of 7-12%

After two weeks of negotiation, the German group Arcandor AG, its works council and the services' union Ver.di agreed, on October 31, 2008, on the details of a cost of personnel reduction plan, announced by the management early in October. Named "Pact for the future," this agreement, already in force, should enable the European trade and tourism leader, which is going through a very rough patch, to save 115 million euro by 2011 annually. (Ref. 080861)
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In this pact, board members, managers, senior executives and employees will all contribute differently. Most employees will immediately undergo wage losses from 7 to 12%. Managers will see their annual wages decrease of 20% and board members, including its chairman, Thomas Middlehoff, of 30%. However, employees earning less than €18.000 a year will not be affected by these measures, or employees who were already subject to wage compromises last year as part of the clean-up plan of the logistics

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