Rolls-Royce Power Systems should move closer to the parent company

Large engine manufacturer Rolls-Royce Power Systems on Lake Constance will move closer to its parent company in London for efficiency reasons. “There is great cooperation in the Rolls-Royce Group,” said labor director Thelse Godewerth after the work meeting. and over 4,000 participants on Tuesday. Due to interoperability, certain roles would no longer be required.

Human resources, finance and engineering departments have been affected. Sales and production are not included. The goal is to prevent duplication of work within the group. All areas should not be painted, Godewerth continued.

The new boss of the British parent company and engine manufacturer Rolls-Royce, Tufan Erginbilgic, recently announced that he wants to save between 2,000 and 2,500 jobs. How many employees at the Friedrichshafen site will be affected will be announced in the first quarter of 2024.

Under the MTU brand, Rolls-Royce Power Systems, a division of the British parent company, sells high-speed engines and drive systems to generate power for ships as well as heavy land, rail and military vehicles – including well-known models such as . Leopard 2 and Puma.

The future contract concluded about four weeks ago between the company and the workers does not include layoffs until the end of 2026, as the leader of the works council Thomas Bittelmeyer said. Long and detailed negotiations preceded the agreement. IG Metall said it creates security in difficult situations. “Any job cuts can only happen voluntarily,” union representative Helene Sommer said.

The pay plan was agreed with a reduction of two annual salaries, said Detlef Gagg, Germany’s Head of Human Resources. The program is not open to everyone, but those affected will be reached. Power Systems employs approximately 9,500 people worldwide, nearly half of whom work at Lake Constance.

Bittelmeyer criticized the fact that they wanted to lay off workers in order to raise the stock price to “fanciful” heights and thus achieve “very ambitious” goals. “It is not clear to the average worker why there should be layoffs in the company when the company is in bad shape,” said the leader of the labor council.

Labor Director Godewerth spoke about the full order books and said we are on the right track. Last year, Power Systems adjusted sales growth with special effects of 23 percent to around 3.3 billion British pounds (3.9 billion euros) compared to the previous year. Adjusted profit rose from 242 to 281 million British pounds (330 million euros) in 2022.