On Monday, February 6, we had a meeting with Philips about the follow-up process of the announced reorganization. After we received an explanation about the new operating model with which Philips aims to achieve better results, we were updated on the implementation of the reorganization.
Operating model consequences
In the coming two years, many employees will be confronted with the consequences of the announced reorganization. Approximately 1100 employees will lose their jobs and 3000 employees will be relocated and/or get another position within Philips. This is because of the new “operating model” that is based on a number of business models. Every employee will fall under a fixed business model. As a result, Philips says goodbye to the “Matrix culture” that received more attention in the time of the previous CEO, Frans van Houten.
Uncertainty and risks for Philips
We are concerned about the employees who are left with a lot of uncertainty. This uncertainty will last for at least the next two years. Because, after this year, a number of employees will become redundant again in 2024 according to Philips plans. Two years is too long to wait with this uncertainty. This causes a lot of unrest within Philips. Employees with a great deal of knowledge and talent may therefore leave Philips now that the labor market is much more favourable. As unions, we have repeatedly informed the employer about this.
No concrete plans
The answer to our question about “what Philips will do about this in order not to lose these employees” has unfortunately not been answered concretely. In our opinion, Philips has no concrete plan to keep the stayers on board. This may mean that Philips greatly underestimates the adverse consequences of this in the future.
Extension CSP
As we previously informed you, Philips has agreed to the unchanged extension of the current CSP (Central Social Plan). In this way we have been able to stop Philips from cutting back on the CSP's proposal. The members have received an invitation to vote. Do you also want to vote on your collective labor agreement? Sign up for it now Complete membership.
How further?
From now on, Philips must continue to implement the reorganization together with the works councils. We will continue to critically monitor developments in this process and continue to work hard to remove the uncertainty of the employees as soon as possible.
If you have any questions regarding this message, you can contact the representative Suat Koetloe via suat.koetloe@unie.nl or call 06-5252 2061.
