German industrial giant Siemens, which has announced plans to cut 16,750 jobs, is also planning to cut the wages of hundreds of employees, Der Spiegel reported Saturday.
In particular, the salary of 390 workers not covered by agreements with the metal workers union will be cut by 10 percent, according to the magazine.
An official from the trade union IG Metall, Heinrich Urban, condemned the "audacity" of the cuts unveiled by Siemens.
The programme "will bring in around 1.2 billion euros (1.9 billion dollars), that's almost as much as has been uncovered so far in the corruption scandal," he said.
Siemens, Germany's third biggest company, is at the centre of a corruption scandal involving kickbacks to obtain lucrative foreign contracts. Slush funds of 1.3 billion euros used for dubious business practices have been identified by Siemens.
The company unveiled the job cuts on Tuesday as part of a giant restructuring plan.
Siemens chief executive Peter Loescher wants to reduce administration and management costs by 1.2 billion euros by 2010.
© 2008 AFP
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