Constructive Solutions Instead of Closure: IG BCE Proposes Restructuring for Michelin Plants

In a characteristic initiative, the trade union IG BCE has developed a rescue plan for several Michelin plants in Germany that are threatened with closure, which could secure over 1500 jobs. This plan includes the establishment of centers of competence, further specialization of the production processes, and a possible consolidation of plants while maintaining a reduced number of employees, in order to substantially reduce ongoing costs. Matthias Hille, as Michelin corporate supervisor at IG BCE, expressed the union's optimism by stating that this approach could not only significantly reduce job cuts but also permanently secure the tire manufacturer's plants. Michelin indicated a willingness to evaluate the proposals and plans a follow-up meeting in early March. Michelin's announcement in November to close the sites in Karlsruhe and Trier by the end of 2025 and additionally end the production of new truck tires and semi-finished products at the Saarland site in Homburg had cast doubt on the importance of the 1410 manufacturing employees overall. With the planned restructuring, the French company intends to withdraw from the segment of truck tire production in Germany. Furthermore, a relocation of the customer contact center from Karlsruhe to Poland would affect 122 jobs. According to previous statements, Michelin does not rule out redundancies due to operational reasons. Michelin cites the intense competition from low-cost truck tires from low-wage countries as well as rising costs and existing overcapacities as the driving forces for this decision. The current restructuring process does not affect the retreading of truck tires in Homburg and the passenger car tire plant in Bad Kreuznach. Further details of the IG BCE proposal include maintaining the Trier plant as part of the Bad Kreuznach operation, as well as expanding the truck tire retreading in Homburg. It is also intended to continue the production of new tires and semi-finished products there with a reduced workforce, focusing on demanding products. The Karlsruhe plant could continue to exist through streamlining the workforce and setting up a talent forge, whilst simultaneously focusing on the production of specialized tires for light trucks and trucks. "We are open to sensible discussion options for reducing costs at the German sites, even if these could involve job cuts," said Hille.