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 Computer, Electrical Electronic And Optical Products Manufacture Of Electrical Equipment 27 - Manufacture of electrical equipment
New offshoring locations
Czechia, Romania
180 - 230 jobs Number of planned job losses
Announcement Date
17 January 2008
Employment effect (start)
1 May 2008
Foreseen end date
31 December 2008
Description
Hirschmann Automotive company has announced that it is to cut approximately 200 jobs at its headquarters in Rankweil-Brederis (Vorarlberg). More precisely, the restructuring is expected to affect around 130 permanent employees and between 50 and 100 temporary agency workers. The redundancies are planned to take effect in May 2008 and to be finalised at the end of 2008.
The redundancies will take place in the high labour cost segments of the company, where primarily unskilled workers are employed. These activities, such as the whole axle production and activities relating to the injection moulding technology, will be relocated to the Czech Republic and Romania, where the firm has already set up subsidiaries.
The management justifies the planned relocation of activities by arguing that reducing labour costs would be inevitable in order to remain competitive. A social plan, including a re-employment scheme covering the workers affected, is currently being negotiated. Nevertheless, the trade unions have announced to initiate some protest action against the planned relocation.
The site in Rankweil currently employs 705.
Sources
17 January 2008: Der Standard
Citation
Eurofound (2008), Hirschmann Automotive, Offshoring/Delocalisation in Austria, factsheet number 66252, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/66252.
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