BASF SE Signs Ludwigshafen Site Agreement

The company management and employee representatives at BASF SE have signed a new site agreement. Titled, “Living the new BASF together!”, the agreement applies to the approximately 34,000 employees of BASF SE at the Ludwigshafen site, BASF reported. The 5.5-year agreement replaces the current site agreement, which would have expired at the end of 2020, according to the company.

BASF SE stated that it will continue to forgo forced redundancies for the duration of the agreement. In addition, the agreement states that an annual average of at least €1.5 billion will be spent on investment, modernization, and maintenance at the BASF Ludwigshafen site each year until 2025.

“We are facing a whole series of major changes, driven by demographic change, limited natural resources and digitalization. The conditions under which we do business are changing at an ever faster rate,” said Michael Heinz, member of the board of executive directors of BASF SE and site director. “If the Ludwigshafen site is to remain successful in a fast-changing business environment, we need to become more agile and flexible. This is in line with our new corporate strategy. With the new site agreement, we are supporting the necessary cultural change while also creating reliable framework conditions for our employees. I am certain that it will help us to ensure that the Ludwigshafen site remains competitive and future-proof for the long term.”

According to the company, the new site agreement represents a commitment to the role of Ludwigshafen within BASF on the part of the company management and the employee representatives. BASF SE added that the site will act as a model and pioneer for the entire group when it comes to tackling key challenges.

“Since the late 1990s, we have pursued two key objectives through the site agreements. The first is to demonstrate reliable and robust prospects for the development of the Ludwigshafen site through investments. The second is to lay out binding protective mechanisms for employees. We have achieved both of these once again in the agreement for 2025,” commented Sinischa Horvat, chairman of the Works Council of BASF SE. “Especially in view of the current crisis, the early conclusion of the 2025 site agreement is a strong, positive signal for the workforce and the region.”

With the new site agreement, BASF said that is making a further commitment to Ludwigshafen as a research site. Although for many years BASF has been increasingly globalizing its research activities and focusing its activities on growth markets, Ludwigshafen remains the most important research and development site in the BASF Group, the company added.

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from American Coatings Association https://www.paint.org/basf-se-signs-ludwigshafen-site-agreement/
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