Siemens Workers' Union Says SIS Division May Miss Workforce-Reduction Goal

Siemens AG, Europe’s largest engineering company, will fall “noticeably” short of a target to cut 2,000 jobs at its unprofitable German computer-services unit SIS, according to a pamphlet from employee representatives.

As far as possible, the cuts to the workforce should take place through voluntary agreements, relocations within the company and part-time contracts, Wolfgang Niclas, who heads the IG Metall union’s office in Erlangen, said in an invitation for workers to attend a protest on July 5.

Negotiations with union representatives are at an advanced stage, said Siemens spokeswoman Ivonne Junghaenel. The company has already “found solutions” for 1,400 positions, she said, without giving further details.

Chief Executive Officer Peter Loescher is looking to separate SIS from the rest of Siemens as it focuses on industrial automation, medical scanners as well as equipment for transport and energy infrastructure. The company on March 18 announced plans to cut 4,200 jobs at SIS -- 2,000 in Germany alone -- after postponing the so-called carve-out until October.

Unions are pushing for only voluntary staff reduction and want SIS to remain within the Siemens group for at least 10 years, given the parent has forecast record profit for this year. SIS, which may be sold or listed on a stock exchange, employs about 35,000 people globally, and clients include the British Broadcasting Corp. and Deutsche Bank AG.

To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net.

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