Electrolux AB’s supervisory board will likely make a recommendation today that the main plant of German unit AEG Hausgeraete GmbH should be closed, Handelsblatt newspaper reported, citing company sources.
Electrolux has been examining the idea of closing the Nuremberg factory since June because of a 15 pct drop in the price of washing machines and because labour costs there are considerably higher than in Eastern Europe. The plant employs 1,750 people.
Handelsblatt said trade union IG Metall is set to offer to take voluntary pay cuts today and to work more flexible hours, but Electrolux CEO Hans Straberg said earlier this month: ‘In our industry, it is not enough to cut wages by 20-30 pct.’
IG Metall is likely to announce the results of the supervisory board meeting on Monday.
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