Bayer - News

October 9, 2009

Improvement in orders

Bayer MaterialScience AG ends reduced working hours at German sites

Rates of pay to be raised again / Solidarity-based solution has proved its worth / Opening clause in collective agreement applied from February to the end of October 2009

Leverkusen, October 9, 2009 – Effective November 1 this year, the Bayer subgroup MaterialScience (BMS) will be reverting to the standard collectively agreed work week of 37.5 hours at its German sites. At the beginning of February the company had introduced a reduction in working time and a corresponding pay reduction of 6.7 percent to combat the effects of the financial crisis. An opening clause in the collective agreement was applied in order to avoid short-time working. With the reintroduction of normal working hours the rates of pay for some 4,100 employees will return to their normal level.

“The reason for lifting this special arrangement is the improvement in orders. Nevertheless the future business development of our customer industries still remains uncertain,” said Dr. Tony Van Osselaer, Labor Director at Bayer MaterialScience AG. Short-time working would mainly have affected employees in production. “Thanks to the solidarity of all our employees, this was prevented,” said Thomas de Win, Chairman of the Central Works Council of Bayer AG. Managerial employees of Bayer MaterialScience were also affected by the cuts, which in their case included the cancellation of this year’s round of pay increases.

Bayer MaterialScience has a global workforce of around 15,000 people, of whom some 5,200 work at BMS AG in Germany. Similar measures were also taken at the international sites, adapted in each case to their economic situation.

The Board of Management of Bayer AG will report on current business trends in its interim report for the third quarter on October 27.

Find more information at www.bayer.com.

Forward-looking statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those described in Bayer’s published reports. These reports are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.