European Stars and Stripes (Newspaper) - June 28, 1991, Darmstadt, Hesse Of Nav june 23, 1991 the staes and stripes a. Page 17 a a a. A a a. A Money matters Quot a. A. A. R 1 i i a i i i v. Let i Iii i. A i a Al ii c a i a cd a or a to a. A a Quot a. Re oils a a it i a or a o j re r w. T 1 i-.�?T-. Us Mot tji Quot j Orr. ,. J Aid 1 a it Oil i us a a in a Nuri a Fri n i i Cizik for or a. If -. A Viu run. my it i Jim us. A Msj .1. A it Erv Quot. I t a a u Rit a a a �?�.<�?��?�>�?�. A. I. I a i it a _ Quot a Yff Iii Uia us , i u a 10.at a 3 to t i a a i in truth. 1.5 r Tri --1c. In it amp a. I re a s / to a. A c j a it Al Quot Dull Iii Ltd a -1 Usa 1 t v s s Aiu a Jitni a 14 a a cwt Al r at a t a 4 a i. At. U to str it. u it la 1.1 j h. I. Uzi la Union Roceda res for staff cuts i it a Kan 1>y Mcclain i Ina Ciai writer a Ger Najiy a Mei-ciicim1- Nahorai Bank has entered into an Silti Kemem Voith its employees Union that Wjk i Uvyn possible Lay Oil s As . Troop sue it Tii in Germany is reduced and Community Bank branches close. Inc agreement requires Bank management a it Olier comparable jobs to employees displaced by troop cuts. Workers who can to be placed in new positions will receive Severance pay based on their years of service and age. A the social plan is much better than management originally offered a said Aloysius Wohlfahrt spokesman for the banking Union in Frankfurt. A we Are proud of it because it applies to All 134 branches in Germany a the agreement signed last month was a hammered out with the a top of a German a labor c ourt judge who served As arbitrator m the Case. James o. Smith merchants general manager in Germany and Wohlfahrt both said they expect the military banking system to survive upcoming troop cuts although a much smaller Bank is Likely to result. A. Wohlfahrt said he expects the Bank which currently has .1,8.00 employees in Germany to be reduced 50 percent by 1994. Quot. T .1. A a a a a what branches close and when depends on military decisions a he said. A and these Are decisions we can to influence very much the social plan at least gives people some Smith said merchants management considers the plan to be fair and equitable. A a we re glad to get this thing in the a done column Quot Smith added. If the agreement Hadnot Bee made a we would have had an unsettling morale problem with people wondering whether have a Job. W e did no to want that to . Quot a a a a Low . Investment in East tied to obstacles staff writer i Nank Buri Germany a about 200 . Companies have invested in the new Eastern German Stales but obstacles to further investment must be removed Beune that number will increase the president of the american chamber of Commerce said wednesday. Frederick b. Irwin said German Media reports that . Businesses have not take advantage of the new Market. Are false. But among the obstacles to be overcome before Eastern Germany be. Comes a More attractive place .of7invest a is the Issue of property rights. The German supreme court recently tided trial the land expropriated by the soviets following we orld War ii would a not be returned to its owners. The German government claims its hands were Wisd because the soviets insisted before agreeing their prop erty not i Evert to previous owners. The soviets took land and Large landowners following world War h. / the German supreme court also ruled that in cases where property rights arc unresolved it May be leased by the slate to the private sector for investment purposes. A we Welcome the decision bub Are unsure about How it will work out in prac live Quot . Another obstacle is the governments a plan to liquidate the communist con a g Lorn crates in the Eastern Stales by Selling them to private businesses a planto be administered by the tre hand agency1. Quot the businesses would then be responsible of the enormous pollution problems. A no one will buy a factory a no matter now cheap tire offer if he has to pay for a the mess they be created Over in last-40 years Quot . A in aduuion., we believe the govern Nern would be Well advised to engage the a name sector in solving their great problem with the in the Eastern Cone i.e., roads water Energy telecommunications and waste a turd obstacle to investment is slow a min Bermed Levels of administration no one will buy a factory no matter How cheap the offer if he has to pay for cleaning up the mess they be created Over the last 40 a Frederick chamber of Commerce in the new states said a Clairn a. Sto Elir chairman of the chamber a Trade policy committee. A. A imagine the american businessman coming to Europe for the first Steps off the plane in Leipzig and is confronted with dealing with the tre hand then any number of state and communal officials a he said. Quot he a going to ask himself a do i really need this a and hell probably Board the next plane for Home or some other country a. Irwin called the Eastern states an Ideal investment place for firms that produce High Quality goods and Are looking for a geographical location near future customers in the former East bloc countries. A if one is looking for Low labor costs for mass production articles one would be ill advised to go to Eastern Germany. The government plan to bring the wage level up to that in the Western states in 1993 is not attractive for Many potential investors. They can do better in Ireland or Portugal Quot he said. Irwin also said there a a feeling in the american business Community that it lacks Access to Eastern Germany and that american firms might be excluded from some of the More lucrative business opportunities. A this has been reinforced by the allocation of the Energy business in Eastern Germany to a few German and european companies without american participation a . The agreement requires the Bank to offer new assignments to employees affected by Branch closures or cutbacks in staffing at Sites where troops arc being pulled out. A -. A if due to a Transfer employees must Bear higher travel expenses to their place of employment the Bank will carry the respective additional costs for one year a the agreement stipulates. ,. The agreement includes a complicated formula on Severance pay that provides a maximum of 20 months pay for the Bank a oldest employees with the most service. Others gel lesser amounts. Five merchants brandies will close Between now and aug. 2 in conjunction with base closures already in the works. Branches set to close include Hess Isch Oldendorf air station Schwa ibises Gini ind a bad Tolz and Neu Ulm. A a a. No More than five employees have turned Down new Job offers Smith said Brady requests More funds to bail out a amp is Washington Uit i amid heightened tension Treasury Secretary Nicholas of Brady asked Congress for an additional $ 180 billion to bail out the savings and loan Industry and an extra year to do the Job. Some senators in turn questioned the effectiveness of. Brady and other officials assigned. To oversee the Industry cleanup and. Suggested wednesday that the oversight Board be reorganized. Brady said the Federal Resolution Trust corp. Needs $80 billion More to cover losses in the Industry and an additional $ 100 billion in working capital which the government theoretically should gel Back. A Quot that s in addition to nearly $80 billion already spent to insure depositors at failed thrifts and $58 billion in working capital already used to take Over thrifts. Brady also told the Senate banking committee that the Agency now estimates it will need a year beyond its current August 1992 expiration Dale to get the Job done. And he acknowledged that his Cost estimates could change maintaining that the governments ability to sell off the thrifts it seized is directly tied to the health of the real estate Industry now in a slump. ,. -. A he added a if i was dealing with you in private id say or. Chairman you and i both know this is going to be a different number a. Some financial experts have estimated that the bailout costs could total As much As $500 billion Over 40 years and predict that More thrifts will fail than the administration has projected. Sem Paul a Sarbanes did said the Public is becoming exasperated with the growing costs of the a amp a bailout
