FRANKFURT (Reuters) - The agreement between Siemens (>> Siemens) and Alstom (>> Alstom) to merge their rail businesses includes guarantees not to shut plants or enforce compulsory redundancies for four years from closing of the deal, German trade union IG Metall said.
A spokesman for Siemens confirmed the pledge, saying it covered major sites in Germany and France.
The two companies target annual cost savings of 470 million euros ($551 million) from four years after closing, expected at the end of 2018.
Siemens Chief Executive Joe Kaeser told a news conference that of course there would be redundancies but that he saw these more in administrative and back-office functions than in engineering.
(Reporting by Georgina Prodhan; Editing by Christoph Steitz)