Thursday, July 20, 2006
heise online - SAP confirms forecasts for fiscal year as a whole
heise online - SAP confirms forecasts for fiscal year as a whole: "Meanwhile an expert on German labor law has warned of a possible burden of millions of euros weighing down on the future account balances of SAP as a consequence of the introduction of a works council. 'Works councils are expensive,' Gerrick von Hoyningen-Huene, expert on labor law at the University of Heidelberg, told the German news agency dpa. The additional costs a company would have to bear for a works council on average amounted to 500 euros per employee per year, he stated. With its staff in Germany amounting to about 14,000 people SAP could hence expect to face additional costs of some seven million euros annually, he remarked.
'Those employees on the works council are relieved of their regular duties and hence do not contribute directly to the company's output', Mr. Hoyningen-Huene explained. In addition there were the costs of organizing employee meetings -- as well as higher administrative and other costs -- to be reckoned with, as the council had a share in the decision-making as it related to working hours, vacations, additional benefits and the hiring of new employees, he pointed out. The works council had to be informed in writing of all these decisions, for example, and would meet repeatedly to discuss them, he added."
'Those employees on the works council are relieved of their regular duties and hence do not contribute directly to the company's output', Mr. Hoyningen-Huene explained. In addition there were the costs of organizing employee meetings -- as well as higher administrative and other costs -- to be reckoned with, as the council had a share in the decision-making as it related to working hours, vacations, additional benefits and the hiring of new employees, he pointed out. The works council had to be informed in writing of all these decisions, for example, and would meet repeatedly to discuss them, he added."
