MarketWatch | German union sues Siemens

[Heidi]

Last Update: 12:02 AM ET Apr 3, 2007
SAN FRANCISCO (MarketWatch) -- Germany's most powerful labor union filed a criminal complaint against conglomerate Siemens AG alleging that the company illegally funded an employer-friendly worker organization to weaken labor rights, according to a media report Monday.

The suit against Siemens filed by IG Metall, Germany's largest industrial union, and invoked a rarely-used statute that prohibits companies from influencing representation on works councils that safeguard employee rights, the Wall Street Journal reported in its online edition.. Those convicted under the law can face prison terms as long as one-year and fines totaling a year's income, The Journal reported. See Wall Street Journal story (subscription required).

The complaint follows last week's arrest of Johannes Feldmayer, a member of Siemens's management board, in an embezzlement investigation, The Journal said.

Prosecutors said Feldmayer transferred about 30 million euros ($40 million) over the past five years to a consulting firm owned by the head of the employer-friendly group, the Association of Independent Employees, known as AUB by its German initials, without specifying the services provided.

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Siemens also is grappling with a separate criminal probe into allegations that senior managers funneled hundreds of millions of euros through sham consulting contracts to bribe potential customers, and in a third corruption case, two former employees are on trial in Germany for allegedly paying 6 million euros in bribes to sell turbines to Italy's Enel SpA., The Journal said. Siemens has said it is cooperating in the investigations.
http://www.marketwatch.com/news/story/german-union-sues-siemens-over/story.aspx?guid=%7B0E643C67-F7F6-421B-B7FE-8C07B776D7AB%7D

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Notes: The United States is one of Siemens' largest markets in the world, with twelve of Siemens' worldwide businesses headquartered here and annual sales of $21.4 billion. The Siemens companies in the U.S. employ approximately 70,000 people in all 50 states and Puerto Rico. Corporate headquarters for Siemens' U.S. businesses are located in New York City. Worldwide, Siemens and its subsidiaries employ 480,000 people in 190 countries and reported worldwide sales of $107.4 billion in fiscal 2006.
http://www.usa.siemens.com/index.jsp?sdc_p=c194dfi1082376lmno1002155ps6t4uz1&sdc_sid=8835794074

The company has approximately 475,000 employees working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements.
Siemens provides innovative technologies and comprehensive know-how to benefit customers in over 190 countries.
Founded 160 years ago, the company focuses on the areas of Automation and Control, Power, Transportation, Medical, Information and Communications and Lighting. In fiscal 2006 (ended September 30), Siemens had sales of €87.325 billion and net income of €3.033 billion. http://www.siemens.com/index.jsp?sdc_p=ft4mls7uo1244571i1245725pcz3&sdc_bcpath=1327903.s_7,1328954.s_7,&sdc_sid=8835794061&