Lenzing with social plan to cushion its restructuring and cost saving programme

Lenzing with social plan to cushion its restructuring and cost saving programme

In several negotiation sessions, the Management Board and Works Council of Lenzing AG tied a comprehensive package of social measures designed to cushion the effects of the recently announced cost reduction plan (for details see TextileFuture News of November 14, 2013). A corresponding agreement applying to the production sites in Lenzing (Upper Austria) and Heiligenkreuz (Burgenland) has been signed

The redundancy programme will be put into effect, and Lenzing’s existing Labour Foundation will be provided with sufficient funding to mitigate negative social consequences. The measures will become effective at the beginning of 2014, in conjunction with the reorganisation of the Lenzing Group. Lenzing will also work intensively to receive additional public subsidies to support the implementation of these measures (from the Upper Austrian Provincial Government and the European Globalisation Adjustment Fund).

Of the planned job cuts in the order of 390, around 100 employees will likely leave the company within the context of retirement plans. The vacant positions will not be refilled. 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 Labour Foundation and professionally accompanied in reorientation to gain new long term career perspectives on the basis of suitable qualification measures. About 30 employees will be able to transfer to the new TENCEL® plant at the Lenzing site. For those employees who are not offered continuing employment with Lenzing due to the ongoing company reorganisation, Lenzing will strive to reach a termination of their employment contracts by mutual agreement, and supported by the social plan in order to avoid layoffs. The social plan will apply until the end of 2014.

In addition to the before mentioned measures, the number of contract workers will be reduced and adjusted according to business activities. The Austrian Public Employment Service will be informed in the next few days on the results of the negotiations and the planned measures.

www.lenzing.com


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