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New collective agreement for the Jenoptik Defense & Civil Systems division to increase efficiency at two German locations

Negotiating parties agree on a long-term collective agreement to safeguard the future. The Essen location will be retained. Measures for more efficient cost structures, improved processes and, thus, increased competitiveness of the Jenoptik Defense & Civil Systems division are also planned.

On August 29, 2013 the Defense & Civil Systems division of Jenoptik, the Works Council and the IG Metall union reached a consensus in their negotiations to align their interests. The key outcome is the decision to retain the Essen location.

To safeguard the future of the Jenoptik locations in Essen and Wedel near Hamburg, the negotiating parties agreed on the following key points:
The Essen location will be retained. Employees will not be subject to termination of employment for operational reasons for the term of the collective agreement, unless key operational changes are required. The wage increase for the 2013 collective bargaining round will be suspended. The weekly working hours will be increased by one hour to 36 hours per week without an increase in wages. The new collective agreement is valid from July 1, 2013 to December 31, 2019 for the Essen and Wedel locations.

The Essen location currently employs 69 staff, while 498 staff are employed at the Wedel location.

The negotiating parties agreed that radical measures are required to ensure that there is a significant improvement in the competitiveness and efficiency of the division’s processes.

“The negotiations resulted in a commercially sustainable yet socially acceptable solution that provides positive prospects for our employees in Essen and Wedel for the next six and a half years”, said Jenoptik CEO Michael Mertin. “The ongoing and consistent improvement in our processes and cost structures will improve our performance in the long-term, allowing the Jenoptik division and its products to remain internationally competitive in the future.”

About Jenoptik and the Defense & Civil Systems division

As an integrated optoelectronics group, Jenoptik operates in the five divisions Lasers & Material Processing, Optical Systems, Industrial Metrology, Traffic Solutions and Defense & Civil Systems.

The Defense & Civil Systems division develops, produces and distributes mechatronic and sensor systems for civil and military applications. The portfolio ranges from individual assemblies, which customers then integrate into their systems, through to complete systems and end products. The division’s areas of competence are energy systems, optical sensor systems, stabilization systems, aviation subsystems and radomes & composites.

The mechatronic products are used in drive, stabilization and energy systems for military and civil vehicle, rail and aircraft equipment. The competencies also extend across the technical focus areas of software development, metrology and control systems. The sensor systems include infrared camera systems and laser rangefinders and are primarily used in automation technology, environmental metrology, safety technology and military reconnaissance.

The division employed 903 staff as at June 30, 2013.