The Ontex factory in Eeklo, East Flanders, remained closed on Tuesday, one day after employees rejected a social plan proposed by the company’s management, trade unions said.
The workers believe management is being stingy with severance pay and accompanying measures for the 347 employees to be laid off when the factory closes next year, according to their representatives.
The factory in Eeklo is closing down, while a facility in Buggenhout is downsizing.
Strike to continue at least until Monday
Discontent is particularly high in Eeklo, where no work has been done since last week. The strike will continue at least until next Monday, when management plans to present a new proposal, according to the unions.
“Staff feel betrayed that management refuses to negotiate until next week,” said Evi Van Der Bracht of Christian trade union federation ACV.
David Baele, representative of socialist trade union federation ABVV, echoes this sentiment. “People feel provoked by the delay in talks until next Monday,” he said.
In the meantime, there has been no contact with management.
€1,200 per year of service
The unions had pointed out earlier that the main source of dissatisfaction among staff was the severance pay proposed by the company: €1,200 gross per year of service.
Management considers the proposal balanced but not final, expressing a willingness to continue negotiations, but only at the previously agreed meeting times.
Ontex, which makes baby nappies, sanitary pads, and incontinence products for private labels, is not loss-making, but faces stiff competition from branded products. Operations have also been shifted to low-wage countries like Mexico in the past.
Ontex to invest €40 million on centre of excellence
The parent company plans to scale down its facility in Buggenhout into a centre of excellence, affecting 140 out of 530 jobs. However, negotiations on a social plan for the employees to be made redundant in Buggenhout are ongoing. Work continues in that facility, and talks have not yet broken down, according to ABVV’s Jan Holtyzer.
A social plan for Buggenhout is to be presented no earlier than next week. Current negotiations are focused on selection criteria rather than severance pay. “When laying off one in three workers, the criteria must be objective to prevent arbitrary decisions by the employer,” Holtyzer explained.
While 500 jobs are at risk at Ontex in Belgium, the company will be investing about €40 million to transform Buggenhout into a centre of excellence.
