BERLIN - With the technology industry awash in layoffs, Siemens’ Information and Communication Mobile, or ICM, division is using a different method to reduce its payroll costs. Starting Sept. 1, workers in Germany will be able to apply for a "time-out" of up to a year, at reduced pay, without losing their jobs permanently.
Employees of the division, which specializes in wireless hardware and networks, were told of the plan several weeks ago, and given until Friday to register their interest, said company spokesman Axel Heim. He could not say how many had applied.
"It's a possibility for us not to lose good workers despite bad times," he said.
All 14,500 ICM employees in Germany, except those in leadership positions, are potentially eligible for the time-outs, providing their supervisors approve.
Employees will receive a reduced salary depending on the length of their leave. Those who take three months off will get 50 percent of their normal pay; six months off, 40 percent; nine months off, 30 percent; and 12 months off, 20 percent.
Originally conceived only for Munich employees, the program was extended to all of Germany after many employees expressed an interest, Heim said. "This can be a test for (parent company) Siemens AG - how workers react, and how successfully the workers re-integrate after they finish" their time-out, he said.
Unlike other Siemens divisions, ICM has not made any direct layoffs, Heim said, but is allowing 2,600 temporary employment contracts to run out without renewal.
Rick Perera writes for the IDG News Service.
