2016 Works Council Award: Securing Jobs at Marquardt Investments to secure the future instead of job cuts

Automotive supplier Marquardt in Rietheim-Weilheim planned to relocate up to 800 of its 2,500 jobs to Romania and Macedonia.

The reasons: high cost pressure in the automotive industry and failed negotiations in 2013 over a company-wide collective bargaining agreement that could have addressed this issue. Things turned out differently—thanks to the works council’s initiative, which has now earned it a nomination for the German Works Council Award.

“We couldn’t just let that happen; we had to take action,” says Antonio Piovano, works council chair at Marquardt GmbH (photo). The works council brought management and IG Metall to the negotiating table to discuss preserving the site. And it developed a plan for how to achieve the required cost savings of 12 million euros.

The result: a collective bargaining agreement to secure employment that safeguards all jobs at Marquardt in Germany—including those at Marquardt Service GmbH—through 2020, and includes a commitment to invest 20 million euros. Plans include a development and innovation center, a training center, and a modern company cafeteria. “This is a clear commitment to the location,” Piovano says with satisfaction.

In addition, the employer is providing funds for part-time education for personal professional development and is granting a total budget of 100 days of paid educational leave for IG Metall shop stewards.

“Furthermore, all apprentices and DHBW students are guaranteed permanent employment. And they receive one day of educational leave per year, during which they can learn about labor and collective bargaining law from IG Metall Albstadt,” adds Works Council Chair Piovano.

However, the agreement does not come entirely free of charge. In return, the employer receives three hours of unpaid work per week from each employee for the duration of the collective bargaining agreement through 2020. Management and executives must make a waiver of equal value. In addition, wage increases will not take effect until nine months later. However, the IG Metall members at the company deliberately agreed to this as part of the deal. They were involved in the negotiations and ultimately voted on the collective bargaining agreement. Nearly 84 percent voted in favor.

The family-owned company Marquardt manufactures electronic switches and switching systems. It employs approximately 8,000 people worldwide at 14 locations in ten countries across Europe, the Americas, Africa, and Asia.