RWE to cut jobs af­ter court de­lays log­ging

Oman Daily Observer - - INTERNATIONAL -

BER­LIN: Ger­man util­ity RWE might have to cut jobs at its Ham­bach site fol­low­ing a court rul­ing that will de­lay plans to ex­pand the mine by clear­ing an an­cient for­est, its chief ex­ec­u­tive was quoted as say­ing on Satur­day.

Chief Ex­ec­u­tive Rolf Martin Schmitz told the Rheinis­che Post news­pa­per that it was not yet clear how many jobs would go, but it would dis­cuss the mat­ter with trade unions and the works coun­cil, adding he could not rule out forced re­dun­dan­cies.

A court in the Ger­man city of Muen­ster ruled last week that RWE could not start log­ging in the Ham­bach for­est un­til a sep­a­rate court had re­viewed en­vi­ron­men­tal claims, which RWE said would push back min­ing un­til af­ter 2020 and hit its earn­ings.

The RWE mine at Ham­bach em­ploys 4,600 peo­ple. Ear­lier this week, RWE said out­put at the mine would de­cline by 10 to 15 mil­lion tonnes a year from its cur­rent level of 40 mil­lion tonnes due to the rul­ing.

In a sep­a­rate in­ter­view pub­lished by the Frank­furter All­ge­meine Zeitung on Satur­day, Schmitz said the hit to earn­ings would prob­a­bly be about 100 to 200 mil­lion eu­ros ($116 mil­lion $231 mil­lion) a year.

Even if the clear­ing is al­lowed to go ahead, the lignite out­put of the mine will prob­a­bly not reach pre­vi­ous lev­els, with Schmitz fore­cast­ing a fixed re­duc­tion of about 5 mil­lion tonnes a year due to the de­lay.

— Reuters

A fuel sta­tion for e-cars of Ger­man power sup­plier RWE is pic­tured in Ber­lin.

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