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 Food And Beverage Manufacture Of Food Products 10.82 - Manufacture of cocoa, chocolate and sugar confectionery
227 jobs Number of planned job losses
Announcement Date
3 March 2005
Employment effect (start)
3 March 2005
Foreseen end date
30 June 2005
Description
The company Joyco is specialised in the production of sugar-made chewing gums and is based in Alcarrás (Lleida, Catalonien, Spain). The company is owned by the American consortium Wrigley and has another factory in Tarazona (Zaragoza, Aragón, Spain). On 3rd March 2005, the Consortium Wrigley announced the closure of the factory of Alcarrás creating 227 redundancies. The management has decided to relocate 90 of the Alcarrás centre's workforce to the Tarazona production centre.
The closure of the plant is to take place in June 2005. The main reasons indicated by the management for the closure have been the decrease of sales of the sugar-made chewing gums, more than €6 million in years 2002-2004 in comparison to other non-sugar elaborated chewing gums plus the high labour costs between the Tarazona(16.82 €/hour) and the Alcarrás(26.43 €/hour) centres.
The closure of the plant will affect the plant of Barberá del Vallés (Barcelona, Spain) which produces ingredients such as basic gum for the Alcarrás centre.
On 9 June 2005, a final agreement between the management, labour representatives and regional authorities has been reached. The agreement considers the relocation of 90 of the plants workforce to the Tarazona plant (Aragón, Spain), lay-off incentives up to € 15.000 brutto per year worked or 55 days salary per year worked for workers over 54. Other agreed measures are lay-off incentives of up to 80 % of salary for workers over 57 years of age, 90 % of the salary for workers over 58 to 60 years of age and the total of the salary for workers over 60 years of age.
Sources
25 March 2005: El País
4 March 2005: El País
9 June 2005: Expansión
Citation
Eurofound (2005), Joyco, Closure in Spain, factsheet number 61232, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/61232.
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