The next wave of layoffs at Steyr Automotive is about to begin. If that is not bitter enough, the employees who now have to leave the car manufacturer should also receive nothing from the social plan. The union does not accept this.
Sigi Wolf offered a transfer bonus of up to 10,000 euros per employee for the switch from MAN to a lower-paying contract with Steyr Automotive.
A social plan has been drawn up for employees who want or need to leave, so that none of the employees are left behind despite the departure of the truck company! So far so good, people thought when the transfer of ownership at Steyr Automotive was finally completed in September 2021.
A new wave of layoffs is coming
The works councils and trade unions were of the opinion that the employees of the former MAN factory were well protected after the agreement. The workforce has now shrunk from around 2,300 to around 1,400 employees – and a new wave of layoffs is on the way, this time mainly among employees.
But: Employees who now have to leave must forego a social plan because there is no more money for it. “We don’t understand that at all,” says trade unionist Wolfgang Gerstmayer angrily. “Even though it was assumed at the time the social plan was concluded that it would apply to 620 employees, the social plan is in force until May 31, 2024,” said the GPA representative.
“Need a lot of advice”
Gerstmayer can understand that the situation has been made even worse by the bankruptcy of the Swedish e-truck start-up Volta and the associated uncertainty about what will happen to the large order: “You still have to treat your people decently.” Works councils in particular are currently in demand at the factory: “There is a great need for advice.”
Three questions about the social plan
- When does a social plan come into play? If a change in business operations is imminent, this will entail significant disadvantages for large parts of the workforce. The works council can remove or mitigate the adverse consequences with an employment contract (social plan).
- What is meant by an operational change? This may include the restriction or closure of activities or parts thereof. This also includes a significant staff reduction and the relocation of parts or the entire company.
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What can be arranged in the social plan? Voluntary severance payment, bridging support, reimbursement of retraining and training costs, establishment of a foundation.
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.
