Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

German SPD leader spars with Siemens CEO over job cuts

Published 24/11/2017, 23:20
Updated 24/11/2017, 23:30
© Reuters. SPD leader Schulz gestures as he speaks during demonstration of Siemens employees and union members outside a meeting of the Siemens works council in Berlin

SAARBRUECKEN, Germany (Reuters) - Martin Schulz, the leader of Germany's centre-left Social Democrats (SPD), on Friday blasted Siemens AG's (DE:SIEGn) plans to cut 6,900 jobs as "anti-social", his latest salvo in an escalating public dispute with Siemens Chief Executive Joe Kaeser.

Kaeser had responded to earlier criticism from Schulz in an open letter published by the Handelsblatt newspaper on Thursday, saying his use of "populist and aggressive slogans" could aid the company's competition.

Schulz, whose party agreed on Friday to enter talks with Chancellor Angela Merkel's conservatives about renewing its outgoing coalition government, said he had read Kaeser's letter but did not plan to respond in kind.

"I'm not going to write an open letter, but I am going to repeat what I said: A company that reports profits of 6.3 billion euros and then fires 6,900 people is acting anti-socially and not socially," he told the SPD's youth wing at a conference in the western city of Saarbruecken.

Siemens last week announced it would cut close to 2 percent of its global workforce, with about half the cuts to be made in Germany.

The plans have triggered protests by thousands of workers at various Siemens sites in Germany.

Schulz previously has suggested the German government could respond to the job cuts by scaling back orders for Siemens, a big government contractor.

In his letter, Kaeser shot back that Siemens also pays 20 billion euros in taxes and social security contributions, according to Handelsblatt.

Critics say Siemens' job cuts will increase unemployment in economically challenged parts of former East Germany, and could bolster support for the far-right Alternative for Germany (AfD).

Lothar de Maiziere, the last prime minister of East Germany and former deputy leader of Chancellor Angela Merkel's conservatives, told the RND newspaper chain that Siemens was motivated purely by "despicable profits" and had no interest in its social responsibilities.

He said the company was taking advantage of the political crisis in Germany and the state of Saxony, where the AfD overtook the CDU to become the strongest party.

© Reuters. SPD leader Schulz gestures as he speaks during demonstration of Siemens employees and union members outside a meeting of the Siemens works council in Berlin

"Frustration leads to extremism and further migration (out of the region). So no one should be surprised that the AfD is making such strong gains in the east. It is benefiting from the dissatisfaction and the fears of the people."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.