Just a week ago, when René Benko sold Kika/Leiner, praising it as a “very good investment”, many employees dreamed of expanding their business in Austria. A few days later, reality hit hard: 1,900 employees lost their jobs at the end of July. A redundancy plan, as is often made for major operational changes, is unthinkable in the event of insolvency.
“We guarantee the affected employees that they do not have to worry about their claims under labor law.” Kika/Leiner chairman of the works council Karl Kocnik assures his colleagues of his support. And AMS boss Johannes Kopf also encourages the laid-offs: “It is always tragic when you lose your job. But it is a good time to look for a new job.”
Despite the words of encouragement, one thing is the reality: 1,900 workers and servants are thrown onto the street. The problem: There is no such thing as a social plan, as has often been the case in recent years when large companies in Austria got into trouble. But what exactly is a social plan?
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
