BERLIN (AP) — Siemens AG on last week extended indefinitely an agreement with its German employees in which it pledges to avoid lay-offs during any future restructuring efforts.

The agreement effectively gives 128,000 workers jobs for life.

The accord with Siemens' employee council and the IG Metall industrial union was signed in July 2008 and originally was due to expire this month.

The industrial conglomerate now said they reached an "open-ended agreement" to extend the deal. Siemens has a German work force of around 128,000 people.

"This represents a clear and long-term commitment to Germany as a business location," CEO Peter Loescher said.

Siemens will continue to "honor its commitment to implementing work force adjustments, wherever possible, without layoffs due to operational requirements", the company said in a statement.

"As in the past, Siemens will use every possible means to achieve this aim, including shifting personnel between locations and setting up short-time work programmes."

Last week Siemens said it will take a charge of up to 1.4 billion euros ($1.8 billion) in the current quarter to reflect revised growth prospects at its health care diagnostics business.

It said the impairment charge will have no cash impact and won't affect its overall outlook for its full fiscal year.

Loescher said that "due to long-term changes in the overall health care market, it became necessary to reassess growth expectations".

In the April-June period, Siemens' fiscal third quarter, the company's overall net earnings were up nine percent at some 1.44 billion euros, thanks to a strong increase in orders in a recovering economy.