Consensus reached on collective agreement for new E.ON service company

  • E.ON to set up new service center in Berlin and keep existing service centers in Regensburg and Hannover
  • Major milestone in “E.ON 2.0” efficiency program

E.ON has achieved another key milestone in the implementation of its “E.ON 2.0” efficiency program. The company has reached consensus with the joint negotiating committee of the ver.di and IG BCE trade unions on a collective agreement for the planned new E.ON Business Services unit. The agreement, which still needs to be approved by the highest committee of the two unions’ energy sector bargaining unit (Tarifgemeinschaft Energie) at its meeting on 2 November 2012, maps out the new service company’s footprint in Germany.

The new company will have locations in Berlin, Regensburg and Hemmingen (near Hannover), where it will employ a total of around 640 people and provide HR and Accounts services. The Berlin location will be a new establishment and will commence operations in the spring of 2013 as the centralized provider of the E.ON Group’s global HR services, including recruiting. It will provide highly qualified, internationally focused new positions for an estimated workforce of about 260.

The existing service locations in Regensburg and Hannover/Hemmingen will be retained and have workforces of around 230 and 150, respectively. Both cities already have sizeable E.ON units, with Regensburg home to E.ON Bayern, and Hannover to the Generation global unit and E.ON IT. Employees at the existing smaller service units in Nuremberg, Landshut, Potsdam and Munich will be offered positions at the larger locations.

“The new collective agreement gives us hundreds of highly-qualified jobs in Germany,” said E.ON Board of Management Member and CFO Marcus Schenck. “Thanks to a great deal of good will on both sides, we have reached agreement on fair pay and conditions, succeeded in centralizing the regional locations, and opened the way for the new location in Berlin. At the same time, we have made good progress on our cost reduction targets. By setting up E.ON Business Services, we will consolidate like services at central locations within the Group and maintain uniformly high standards of quality that will benefit the entire E.ON Group. Our special thanks goes to the governments of the states concerned for their support in this process.”

Michael Mittmann, Chairman of the Group Works Council: “The outcome achieved by the negotiation process gives our colleagues in the affected units much-needed certainty about the future. The waiting game is over. The compromise reached on the collective agreement accommodates the social and material interests of E.ON’s employees. Chief among the interests protected are the retention of the E.ON service locations in Hannover/Hemmingen and Regensburg and the safeguarding of jobs in Germany through the creation of the new Berlin location. Together, the works councils and unions have shown themselves to be creative and constructive partners to the company in difficult times.”

Launched in August 2011, the “E.ON 2.0” program is part of E.ON’s strategy to significantly reduce its annual controllable costs. Centralizing like HR and Accounts tasks in business service centers will help to achieve this objective. Even more importantly, it will also help standardize processes across the Group and enable all companies in the Group to make better use of institutional knowledge and expertise.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.