DUESSELDORF/FRANKFURT (Reuters) - The planned break-up of German energy group Innogy (DE:IGY) will happen without forced layoffs, according to a basic agreement reached on Friday by the company, its parent RWE (DE:RWEG), rival E.ON (DE:EONGn) and labour unions.
The framework deal marks a significant step towards implementing the complex transaction, which will effectively dissolve Innogy as an independently listed group, with RWE and E.ON dividing its assets between them.
In the agreement, signed by top executives of all three companies and leaders from labour unions Verdi and IG BCE, the parties said that existing programmes formed a proven basis for cutting jobs in a socially responsible way.
"On this basis, the companies that have signed this agreement essentially rule out compulsory redundancies," the parties said in a joint statement, adding there would be a new collective bargaining deal for workers at Innogy and E.ON to reflect this.
RWE, which owns 76.8 percent of Innogy after an equity carve out in 2016, agreed in March with rival E.ON to break up Innogy, with E.ON saying it would cut up to 5,000 jobs as part of the transaction.
Innogy on Thursday held off supporting a 4.9 billion euro (4.3 billion pounds) bid by German rival E.ON that is part of the deal, saying it was not clear if the asset swap was fair for workers or minority shareholders.
