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 Tobacco Products Manufacture Of Tobacco Products 12 - Manufacture of tobacco products
European Globalisation Fund (EGF)
Year: 2011, Case number: 10
New offshoring locations
Poland
320 jobs Number of planned job losses
Announcement Date
5 May 2011
Employment effect (start)
6 May 2011
Foreseen end date
31 December 2011
Description
The tobacco manufacturer Austria Tabak is to close down its production site in Hainburg and the headquarters in Vienna, making 320 jobs redundant. In the traditonal and longstanding production plant in Hainburg, there are currently 240 employees recruited. In addition, some 80 job dismissals will be realised at the company's headquarter in Vienna. The company was a state-owned monopolist until it has been taken over by the British Gallaher Group in 2001. Following that the company was bought by the Japan Tobacco International Group in 2007. The production site in the east Austrian town of Hainburg was the last remaining one after the closure of the production site in Linz in 2009 (see factsheet no:10185 for further details) and the production sites in Schwaz and Fürstenfeld in 2005 (see factsheet no:10177 for further details). According to the company's CEO, the decision for closure was taken due to decreasing order intakes and high fixed costs. The annual capacity of the Hainburg site has decreased from around 20 billion cigarettes to about 10 billion cigarettes per year lately. The company plans to move the production facilities to Eastern Europe, most likely to Poland. The trade unions have strongly rejected the restructuring measure. It is stated that the majority of the employees affected have been working in the company for decades and are in the 40+ age range. More than half of the employees are women. The trade unions also added that the closure of the production site will have strong implications for the whole economy in a structurally weak area. A social plan for the 240 members of staff of the Hainburg plant has been agreed upon in August 2011. Accordingly, these workers will have a job guarantee until the end of November 2011. Transitory rules for older members of staff will apply and a foundation that will be in charge of assisting the further training measures of those that will be made redundant will be established.
Eurofound (2011), Austria Tabak, Offshoring/Delocalisation in Austria, factsheet number 71943, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/71943.
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