All talks failed and no new investor could be found. The Audi factory in Brussels will close its doors permanently at the end of February.
There is also no social plan for the 3,000 employees. The company’s sixth offer was also rejected by employee representatives, the Volkswagen Group subsidiary announced on Thursday. Audi is now offering its employees their own, voluntary company bonus in addition to the statutory severance payment, according to production director Gerd Walker. “Overall, Audi is spending more than twice as much on severance payments as required by law,” Walker said.
Too much effort for only one model produced
The factory produces only one model, the large electric SUV Q8 e-tron. However, sales figures are shrinking. The factory has very high logistics costs because there are few suppliers nearby. The location between a residential area, the railway and the highway makes expansion difficult. The parent company Volkswagen is in crisis and does not want to launch a new model in Brussels.
Walker regretted that negotiations on a social plan had failed. An employee with 17 years of service would have received between 125,000 and 190,000 euros, depending on the position and salary. Without a joint social plan, Audi is not allowed to offer additional age schemes for employees over 60 for legal reasons.
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.
