Workers at Putzmeister's Shanghai division protest over Sany takeover
Updated: 18 Feb 2012
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Putzmeister's Shanghai division
Sany Heavy Industry
A Sany factory. Workers at Putzmeister's Shanghai division have protested the firm's compensation policy after the announcement of its takeover. (Photo/Xinhua)
Sany Heavy Industry announced late January it would pay €324 million (US$426 million) to buy a 90% stake in Putzmeister, Germany's largest concrete-pump maker. However, the acquisition is awaiting regulatory approval from Chinese authorities, the Shanghai-based First Financial Daily reports, citing sources from another Chinese heavy-equipment manufacturer, Zoomlion Industry Science & Technology Development, which claims that it had been given the green light by the regulator to make a move for Putzmeister itself.
The deal has sparked controversy at Putzmeister's headquarters, with protests by the company's German employees being reported a few days ago.
In addition, the First Financial Daily said Putzmeister Machinery Shanghai had suspended its operations a few days ago, with assembly-line workers complaining to their superiors about the company's compensation policy and asking for higher payments.
On Feb. 15, the reporter found that no assembly workers had reported to the company's factory in Shanghai. A staffer on duty said the factory may resume production on Feb. 20.
The decision to suspend operations was taken at an employee meeting on Feb. 14, where a German executive announced several new policies. By this time, the market was already abuzz with rumors that had begun Jan. 28 that Sany was planning to acquire Putzmeister.
A source familiar with the matter said Sany was scheduled to take over Putzmeister Machinery Shanghai on March 1.
After the news was confirmed, employees expressed their concerns over the company's personnel plans after the acquisition. They were dissatisfied with two of the compensation plans proposed by their German employer. The source said most assembly-line workers preferred a third plan, under which they could secure their basic needs in the short term, even if they were made redundant by Sany.
After the deal was reached, Sany president Xiang Wenbo told reporters that no employees would be laid off during the takeover. Putzmeister would also retain its independent brand and its management team.
The deal has sparked controversy at Putzmeister's headquarters, with protests by the company's German employees being reported a few days ago.
In addition, the First Financial Daily said Putzmeister Machinery Shanghai had suspended its operations a few days ago, with assembly-line workers complaining to their superiors about the company's compensation policy and asking for higher payments.
On Feb. 15, the reporter found that no assembly workers had reported to the company's factory in Shanghai. A staffer on duty said the factory may resume production on Feb. 20.
The decision to suspend operations was taken at an employee meeting on Feb. 14, where a German executive announced several new policies. By this time, the market was already abuzz with rumors that had begun Jan. 28 that Sany was planning to acquire Putzmeister.
A source familiar with the matter said Sany was scheduled to take over Putzmeister Machinery Shanghai on March 1.
After the news was confirmed, employees expressed their concerns over the company's personnel plans after the acquisition. They were dissatisfied with two of the compensation plans proposed by their German employer. The source said most assembly-line workers preferred a third plan, under which they could secure their basic needs in the short term, even if they were made redundant by Sany.
After the deal was reached, Sany president Xiang Wenbo told reporters that no employees would be laid off during the takeover. Putzmeister would also retain its independent brand and its management team.
SOURCE: wantchinatimes.com
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