IG BCE

When the new commission for growth, structural change and employment is deployed by the federal government, the German Industry Union for the Mining, Chemical, and Energy Industries (IG BCE), Hanover/Germany, expects a commitment from all participants towards sustainable industrial future perspectives for employees and the regions as well as a serious debate on the open issues in energy generation and future energy prices. The union has been demanding this from politicians for several years. The fact that this commission now wants to adopt this issue as a priority is very welcome, according to the Executive Secretary of the IG BCE, Michael Vassiliadis, who will also participate in the commission himself.

“The people in mining regions don’t need a politically accelerated withdrawal of coal,” explains Vassiliadis. The path towards the withdrawal of coal-powered electricity generation has been mapped out for a long time. “What they need is access to a structural transformation process that ensures reliable industrial labour. This is what we are working towards in the commission.”

Vassiliadis explains that the energy economy has already borne the main load of the CO₂ savings in Germany for a long time. He claims it is the only sector that will come close to achieving the German climate objectives for the 2020. “If we really tighten the thumbscrews, this will have painful consequences for the whole industry in the region and will cost jobs,” emphasizes the Chairman of the IG BCE.

Although Germany is set to rely on conventional energy generation for several decades, we must start thinking about the time after this, explains Vassiliadis. “Structural transformation is a marathon, not a sprint.” According to Vassiliadis, what we need is ideas and investment for a sustainable industrial transformation in the traffic and data infrastructure, and the promotion of industrial cornerstones. He also believes that decent industrial work is the only way to prevent the mining districts from becoming ghost towns. (IG BCE/Si.)

The German Trade Union for Mining, Chemicals and Energy (IG BCE), based in Hanover/Germany, welcomes the news that the CDU, CSU and SPD plan to gather together all the stakeholder groups affected by the energy transition and hold discussions. “We will be actively involved in the planned commission,” announces Michael Vassiliadis, Chair of the IG BCE, at the union’s annual press conference. He added that the energy transition needed a restart “on its priority measures, on its funding and on its targets” and, to this end, presented a road map for his union.

This lays out plans for:

• Clear prioritisation of the expansion and modernisation of electricity networks and storage facilities: Before we can reap the long-term benefits of renewable energies and continue to expand them, we have to build infrastructure that can fully utilise these resources.
• An end to the system of blanket funding: Initial projects using the tendering model have proven that investments in renewables are still profitable even when the state contributes nothing or virtually nothing.
• A move away from the renewable energy surcharge towards a tax-financed solution incorporating a social component.
• Focused development of new state-of-the-art technologies for generating energy: Even in the distant future, electricity supply cannot be guaranteed by wind turbines and solar panels alone, because their contribution is too volatile.
• A move from the electricity transition to the energy transition: This means considering heat generation and traffic and offering greater financial incentives to save energy.
• A European perspective on energy supply: The IG BCE supports the EU Commission in its plans for an energy union.

“The long-term redevelopment of our energy supply is a marathon and not a sprint,” stresses the IG BCE Chair, “which is why we are delighted that the three potential parties of the Grand Coalition are – according to media reports – prepared to readjust the interim targets for CO₂ savings by 2020 and that all three want to make progress without causing social and economic structural changes.” (IG BCE/Si.)

The management team of the Industriegewerkschaft Bergbau, Chemie, Energie (IG BCE), Hanover/Germany, reassesses its position following the vote on the managing Executive Committee. In future, the union will turn more of its attention to the challenges of digitalisation. This is reflected in a specific board division, which Francesco Grioli is set to take over. The former Rheinland-Palatinate/Saarland Regional Manager was elected to the IG BCE’s managing Executive Committee on 6th October 2017. He succeeds Peter Hausmann, who has retired from the committee. Ralf Sikorski, formerly responsible for labour policy, is taking on Hausmann’s responsibility for collective bargaining policy.

“The delegates have placed a great deal of trust in the new team. We promise not to disappoint them,” said IG BCE President Michael Vassiliadis (Figure 1), who was re-elected alongside his deputy Edeltraud Glänzer and Executive Committee member Petra Reinbold-Knape. “The new management team will make every effort to keep our union at the top of the league when it comes to collective bargaining, labour and industrial policy.”

Vassiliadis describes digitalisation as “one of the greatest challenges faced by industrial and collective bargaining policy of our time.” It does however create major opportunities as well – if social partners find reasonable solutions on the conditions for flexible and mobile working. “We want to push this through within the next few years.”
(IG BCE/Si.)

Petra Reinhold-Knape has joined the executive board for the Trade Union for Mining, Chemicals and Energy (ICG BCE) in Hanover. She has taken over from Egbert Biermann who left his post for personal reasons.

On the occasion of its annual review for the press on 2nd June 2015, the Board of Executives of the RAG-Stiftung drew on the most important highlights of the first half of their current term in office, presented the key points of the 2014 financial year and explained the targets for the current year.

Since the current Board of Executives assumed office in December 2012, the RAG-Stiftung has reached significant milestones in terms of developing the foundation’s assets and securing finance to cover the perpetual liabilities of coal mining cessation, as well as setting other important items for the future agenda. “We have been able to increase the foundation’s assets from roughly € 11 billion at the end of 2012 to more than € 16 billion at present,” said Dr. Werner Müller, Chairman of the Board of Executives of the RAG-Stiftung. “This means we have already established an excellent basis with which we can finance these perpetual liabilities in the future.” To do so, the foundation has to raise approximately € 220 million per year, starting in 2019. This is faced with annual revenues of approximately € 350 million, which are likely to increase. “The foundation will not use the public purse to manage annual expenditure once coal mining has ceased,” stressed Müller. “In other words, we do not want to – and will not – burden tax payers with financing the perpetual liabilities.”

At roughly € 11 billion, the 68 % share in Evonik Industries AG made a substantial contribution to the foundation’s current assets. In the meantime, the 30 % share in Vivawest, acquired by the foundation mid-2013 at a purchase price of around € 900 million, contributes to its assets with a value of over € 1.5 billion, based on the stock market trend of comparable businesses.

The 2014 surplus was € 351 million. This amount was added to the accruals for perpetual liabilities, reaching a total of more than € 4 billion for the first time; at the end of 2012 it was just € 2.6 billion. “This success is the result of sound economic activity and investment decisions based on the future,” said Müller. Since the end of 2013 and notably against the background of permanently low interest rates, the foundation has adapted its investment strategy in agreement with the Board of Trustees, promoted diversification of its investments to spread risk further and established appropriate structures to that end.

Thanks to its two investment companies, the foundation currently has a share in seven medium-sized, expanding businesses from different sectors, with a total investment volume of around € 300 million. Financial Director, Dr. Helmut Linssen, explained, “We are a long-term, reliable investor that wants to generate stable income on a lasting basis. And that is because we need that income to finance ‘perpetual’ liabilities.” In addition, the foundation has invested around € 150 million in international private equity and infrastructure funds, thereby investing at a more international level. Linssen said, “The total value of our diversified investments currently lies at roughly € 4 billion, which is a quarter of the foundation’s € 16 billion or so in assets. We want to increase this amount in the future.”

HR Director, Bärbel Bergerhoff-Wodopia, highlighted the increasing significance of education, science and culture in the regions affected by the cessation of coal mining: “The RAG-Stiftung fulfils its social responsibilities by running projects with specific objectives and has raised the ever-greater challenge in accordance with the 2014 finance volume by € 3 million up to € 4.5 million and increased the budget to € 7.5 million for 2015.” Furthermore, Bergerhoff-Wodopia presented the special project, “Glückauf Zukunft!”, which is designed as a series of initiatives running up until the last coal mine is closed at the end of 2018, in order to acknowledge the historic contributions of coal mining and to simultaneously give impetus to the post-coal mining era. The project was started as a community initiative by the foundation, RAG and Evonik, and in collaboration with social partner IG BCE. The single largest project in this regard is a thorough renovation of the Bergbau-Museum in Bochum, for which the foundation has set aside up to € 15 million.
(RAG-Stiftung/Si)