Global Excellence – efficiency enhancement program
Far-reaching long-term changes were already visible in our most important markets in 2007. In response to the changed market demands, we formulated a comprehensive efficiency enhancement program at an early stage, with the aim of optimizing structures and processes to make Henkel even more competitive. In February 2008, we announced that the Global Excellence restructuring program would result in a reduction of about 3,000 jobs worldwide, across all regions and business sectors. The restructuring also involves closing certain sites. All human resources measures are being implemented in a socially responsible manner with a view to minimizing the risks and hardships facing the employees concerned. Natural attrition and early retirement always take priority. We are also actively supporting employees in their search for new positions, by recommending them to other companies or by putting them in touch with external advisors. The employee representative bodies are informed at an early stage before each decision, and their recommendations are taken into consideration whenever possible.
Examples of the restructuring program
The largest German project is the plan to concentrate laundry detergent production in Düsseldorf. Our detergent plant in Genthin, where 240 people are currently employed, will therefore close in late 2009. The expansion of liquid detergent production in Düsseldorf will create 90 new jobs, which will be offered to the Genthin employees. In view of the significance of the Genthin site for Henkel and the region, we conducted intensive talks with all concerned parties – also with regard to alternative solutions. However, the high manufacturing and transport costs, in particular, made the relocation of production necessary. Düsseldorf is a central location, from which we can serve all important Western European markets. Together with the state of Saxony-Anhalt, Henkel is continuing to conduct an intensive search for investors who can find an alternative use for the Genthin site. Along with our social partners, we are now focusing on finding new jobs for the Genthin employees, whether with Henkel or with other employers. We are providing appropriate coaching for these employees to help them with their job applications.
In 2009, to utilize plant capacity more efficiently, the production site at Malgrat, Spain, will be merged with the site in Montornès, 50 kilometers away. In intensive preparatory discussions, the employee representatives and the site managers developed solutions for the necessary relocation. Malgrat employees who have been offered a new job in Montornès will be able to take advantage of a daily travel service. Henkel has offered compensation in line with their number of years of service to employees for whom no work could be found in Montornès. An early retirement scheme has also been put in place.
Cross-industry engagement
In September 2008, within the scope of the sectoral social dialogue of the European Chemical Industry, the EMCEF (European Mine, Chemical and Energy Workers' Federation) and the ECEG (European Chemical Employers Group) signed a joint position paper in Brussels detailing their findings from the project Restructuring, Managing Change, Competitiveness & Employment. The main emphasis was to collect best practice examples from the experience gained in the projects in the chemical industry and to apply these as core elements in good corporate management in the event of restructuring. Henkel is extensively engaged in such activities, not only through its membership in the German Chemical Industry Employers Federation but also through concrete contributions to shaping the social dialogue at the European level. Regular meetings with representatives from the European chemical workers’ unions and the European Commission, Directorate General for Employment, Social Affairs and Equal Opportunities provide a forum for constructive social dialogue and problem solving.
