In order to secure its German production sites, REpower Systems AG is planning to introduce cost saving measures as part of the “RE-Act” restructuring programme which are targeting a reduction in personnel costs. In pursuit of this objective, the Board of Management of REpower Systems AG has developed a proposal in cooperation with the union representatives during intensive wage negotiations. However, the union has refused to approve significant aspects of the proposal. Following further negotiations at operational level with the works councils at the REpower locations at Husum (Schleswig Holstein) and Trampe (Brandenburg), an agreement was reached at Trampe that provides for a temporary increase in the working week to 41,5 hours as well as a temporary wage reduction for all employees, which is to be realised by reducing the 13th month salary during 2005 and 2006. In return, staff has been issued with guarantees of employment until 31 December 2007. This agreement will now be submitted for approval at the other locations.