Belgian personal hygiene group Ontex has agreed on a plan for the closure of its factory in Eeklo, which will result in the loss of around 350 jobs.
On Monday evening, the management of Ontex in Eeklo and the workers’ representative organisations agreed on a social plan, which will see the almost 350 workers at the site lose their jobs by the end of the year.
Ontex is an international personal hygiene group which manufactures products for baby care, feminine care and adult care. The company was founded in Belgium in 1979 as a supplier of underpads for Belgium hospitals, clinics and care homes.
The Eeklo plant will provisionally shut down on 20 December.
A previous proposal for a social plan was not approved last Wednesday, but dialogue continued between management and unions. Negotiations progressed, and let to a compromise on a social plan this week.
An ongoing strike, which has lasted 10 days, has now been suspended. Staff were striking as they believed that management was being stingy with severance pay and accompanying redundancy measures.
Ontex 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.
The parent company plans to scale down its facility in Buggenhout into a centre of excellence, affecting 140 out of 530 jobs. Negotiations on a social plan for the employees to be made redundant in Buggenhout are ongoing.
