To assure its long-term competitiveness and to cut costs, Henkel regularly adjusts to structural changes in the market. The restructuring program announced in early 2005 was carried out according to plan. About 3,000 jobs were shed in Europe and North America by the end of 2006. Employee representative bodies were involved in the determination and implementation of the reorganization measures at an early stage, with the aim of finding socially reconcilable solutions and avoiding dismissals due to corporate restructuring.

When reorganization becomes necessary, we inform our employees and work with them to develop mutually acceptable solutions. The restructuring of three sites in Great Britain illustrates how productive the dialogue between management and employees can be. In 2006, in view of their geographical proximity, three production sites were consolidated into one, in Hemel Hempstead, to improve plant and technology utilization.

In intensive preliminary meetings, the 105 employees affected worked closely with the management team to develop solutions for the necessary relocations. The measures implemented included transfer payments and flexible working hours, as well as welcome packages and site visits. A newly created company mini-bus shuttle, car-sharing system, and allowances for increased travel costs eased the burden of additional commuting. Full relocation services were also organized if requested by individual employees.

The implemented measures strengthened our image as a responsible and reasonable employer in the region. Employee motivation and goodwill were maintained despite the changes. Due to the success of this collaborative and integrated approach, we intend to use this project as a guide for future reorganization projects at Henkel.