Home / Knowledge / News / Textiles / Lenzing provides cushioning for redundancy program
Lenzing provides cushioning for redundancy program
17
Dec '13
Following several negotiation sessions, the Management Board and Works Council of Lenzing AG agreed on a comprehensive package of social measures designed to cushion the effects of the recently announced cost reduction plan.

A corresponding agreement applying to the production sites in Lenzing (Upper Austria) and Heiligenkreuz (Burgenland) was signed. A binding social plan (redundancy program) will be put into effect, and Lenzing’s existing Labor Foundation (Arbeitsstiftung) will be provided with sufficient funding to mitigate negative social consequences.

The measures will take effect at the beginning of 2014 in conjunction with the reorganization of the Lenzing Group. Lenzing will work intensively to receive additional public subsidies to support the implementation of these measures (i.e. from the Upper Austrian Provincial Government and the European Globalisation Adjustment Fund).

Of the planned 390 job cuts, about 100 employees will likely leave the company within the context of retirement plans. These vacant positions will not be filled. Numerous employees will take advantage of part-time early retirement plans and alternative working time solutions.

A total of 100-150 employees are expected to take advantage of the Lenzing Labor Foundation and professionally reorient themselves and gain new long-term career perspectives on the basis of suitable qualification measures. About 30 employees will be able to be transfered to the new TENCEL plant at the Lenzing site.

For those employees who are not offered continuing employment with the company due to the ongoing company reorganization, Lenzing will strive to reach a termination of their employment contracts by mutual agreement supported by the social plan in order to avoid layoffs. The social plan will apply until the end of the year 2014.

“With this package of measures we have developed an acceptable solution for both sides”, says Lenzing CEO Peter Untersperger. “The required savings of EUR 120 mn annually will be realized as planned. Two-thirds of the cost reduction will be achieved by cutting material and other operating expenses and one-third by lower personnel expenditures. On the one hand, these measures will enable us to effectively cushion the hardship of our employees.

“On the other hand, the number of employees to whom no job can be offered will turn out to be much lower than originally expected. I appreciate that we have succeeded in returning to the tried and tested Lenzing approach of coming together in a spirit of cooperation. By these measures we will jointly work to retain the future competitiveness of the relevant sites”, CEO Untersperger adds.

In addition to the above-mentioned measures, the number of contract workers will be reduced and adjusted according to business activities.

“As a member of the Works Council, one can generally never approve job cuts. However, with the agreed upon social plan we have succeeded in achieving a solution which represents an acceptable compromise from our point of view,” comments Rudolf Baldinger, Chairman of the Lenzing Works Council.

Lenzing


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search