Production workers at both FAG Kugelfischer Georg Schafer AG (Schweinfurt, Germany) and INA Holding Schaeffler KG (Herzogenaurach, Germany) have new 3-year labor contracts now in place.

Privately-held INA has just completed a difficult but highly successful takeover bid for FAG, paying between € 11 and 12 per share over a five-week offering period and acquiring almost 90% of the company's outstanding shares.

Employees of both companies are represented by IG Metall, and have been guaranteed no job cuts during the life of the contracts.

IG Metall - the metalworkers' trade union - is Germany's largest and most powerful labor union, with 2.8 million members. Members of IG Metall earn an average of USD $30,000 per year, working 35 hour weeks with 6 weeks paid vacation.

Although the FAG and INA labor contracts were negotiated separately, they both go into place when INA's takeover of FAG is completed.