The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Material For Textiles, Apparel, Leather And Related Products Manufacture Of Leather And Related Products 15 - Manufacture of leather and related products
New offshoring locations
Romania, Indonesia
170 jobs Number of planned job losses
Announcement Date
16 August 2006
Employment effect (start)
16 August 2006
Foreseen end date
30 September 2006
Description
Due to competitive pressure, the Austrian subsidiary of the German shoe manufacturer ARA has been undergoing substantial restructuring since 2004. This means that production capacities have been relocated from the site in Feldkirchen (Carinthia) to low-wage countries, such as Romania and Indonesia, where production facilities have already been set up. After major restructuring in 2004 and 2005, when 70 and 32 workers, respectively, were laid off, some additional 170 employees are going to lose their job by the end of September 2006. This information was released by Herbert Linninger, the company's CEO, on 16 August 2006. The site in Feldkirchen will then run only a sales department and a logistic centre, both then employing not more than a total of 60 employees. The management is currently negotiating with the unions about a social plan in order to mitigate the disadvantages for the workforce concerned.
Sources
16 August 2006: Wirtschaftsblatt
16 August 2006: Der Standard
Citation
Eurofound (2006), ARA Österreich, Offshoring/Delocalisation in Austria, factsheet number 60513, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/60513.
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