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My presentation:

Topic: Corporate Reorgnization of RAG Verkauf GmbH

Agenda: 1. Company description 2. Why do we have to reorganize our company 3. What do we have to achieve? 4. The company agreement 4.1 What does it mean? 4.2 Qualification of staff members 5. Prospects

Content: I work in the HR department of the RAG Verkauf GmbH, which is a subsidiary of the new Evonik Industries AG (former RAG AG) located in Essen. Evonik Industries is a conglomerate consisting of three major “pillars”: - chemistry - real estate – energy- RAG Verkauf is positioned in the energy pillar and deals with the sale of German coal. Our major customers are e.g. RWE, E.ON and EnBw, which need the quality of the German coal for their coal-burning power plants.
 * 1. Company description**


 * 2. Why do we have to reorganize our company?**

In 2006 and 2007 the discussion about the production of German coal did often appear in the media. Today it has become clear that there will be no future for the German coal mining industry. It is highly cost intensive to produce coal in Germany, because it lays too far under the ground. Moreover coal from other countries like e.g. China is cheaper and therefore more competitive on the market. This is of course also linked to missing or weak legislation concerning among other things safety or child labour. However the German coal production is already a subsidized business, which involves a number of different companies.

One can already see the decline of coal production since the last few years and this process is ongoing. The government has decided to stop subsidizing the mining industry by the end of 2018.

According to the successively declining coal production, the involved companies have to think over their staff requirements. This does not only concern the German mining company DSK but also our company, which especially deals with the sale of German coal.


 * 3. What do we have to achieve?**

Our main business area is the sale of German coal to coal burning power plants. However we also have other business areas which do not have directly to do with coal, but most of our employees are trading coal. Evonik Industries wants our company to reduce its 107 full time


 * 4. The company agreement**

Evonik has promised that there will be no cancellations. Therefore they have to choose socially acceptable tools to reduce the number of staff. For that reason RAG Verkauf GmbH has made a company agreement concerning the company reorganisation. Both, the executive board and the workers’ councils have agreed on it.


 * 4.1 What does it mean?**

First of all, the company agreement should be an intensive for employees to leave the company voluntarily. If they do so, they will get a specific amount of money. The actual amount depends on several aspects as e.g. the years of membership in the company.

Besides the compensation, we offer our employees a catalogue of further trainings including e.g. application training. This should open them more opportunities on the job market. Here I will go into more detail what kind of tranings are offered.
 * 4.2 Qualification of staff members**