Belgian bus manufacturer Van Hool in Koningshooikt (Antwerp province) plans on cutting 1,116 jobs over the next four years – the most significant layoff since Carrefour supermarket's dismissal of 1,233 employees in early 2018.
Around 830 jobs will reportedly be cut as early as this year, the joint union front confirmed. Moreover, without a new financial plan to pay for the restructuring, bankruptcy is looming before the end of March, De Morgen reports. Bus production is moving entirely to northern Macedonia.
The lack of external financing, longstanding debts and strategic mismanagement all forced Van Hool to announce significant restructuring a few months ago. Then, last week, it was leaked that Van Hool would stop producing city buses, and that part of its coach production would move to northern Macedonia, causing dismay among the unions. But it was only on Monday that crisis manager Marc Zwaaneveld told workers what exactly this restructuring would entail.
Zwaaneveld spoke at the works council on Monday morning about "the possible painful departure of around 1,100 valued colleagues in the coming years 2024-2027," according to an email sent to staff. According to unions, the company is planning to cut its workforce from the current 2,494 staff members to 1,378 by 2028 – a drop of 1,116 jobs.
The first 834 jobs will disappear by the end of the year, including 155 forced retirement, 659 forced resignations (without financial or material compensation) and 20 redundancies, according to the unions. Over the next two years, 27 redundancies will be added each time, and the final 228 will happen in three years' time. It involves "various forms of departure, such as redundancies, pension schemes and natural attrition," Zwaaneveld stated in the mail.
The Van Cool works council. Credit: Belga
Due to the high seniority of many employees at Van Hool – and the high severance payments – the entire restructuring plan would cost around €60 million, but it is not yet clear where this money would come from. Without a financial plan in place, bankruptcy is looming – and it may happen even before the month is up.
"The coffers are empty," the unions were told at the works council. "In the short term, liquidity is urgently needed to avoid bankruptcy. If there is no agreement with all stakeholders by 31 March, bankruptcy is inevitable."
Bus and coach production will move to Van Hool's plant in Skopje, northern Macedonia. In Koningshooikt, meanwhile, production will focus on semi-trailers. "Public transport will be approached more selectively as a market segment," the company said, adding that it wants to focus on vehicles with slightly more added value and quality than city buses.
"It is necessary for us to adapt in order to survive. I fully understand the impact of the intention for strategic reorientation that we now have to announce. But let us realise that these steps are crucial to ensure a sustainable future for Van Hool," Zwaaneveld wrote in his email to staff.
"I want to stress that this decision was not made lightly. It is based on the urgent need to save our company from a critical situation. We have no choice if we want to continue to exist and fulfil our promises to our customers."
'Hardest day in our history'
Monday was the "hardest day in our history," Van Hool spokesperson Dirk Snauwaert said at a press conference. "But it is also positive: if banks and the government are willing to support us, there is a future for Van Hool, for the 1,400 people here and the total of 3,000 people directly and indirectly involved."
From now on, the information and consultation round with the trade unions will begin, as per the Renault law. These discussions should lessen the scale of job losses.
With the 31 March deadline fast approaching, Van Hool must pull out all the stops. The Flemish Government has already allocated €30 million for the bus manufacturer and Flemish Prime Minister Jan Jambon (N-VA) and Economy Minister Jo Brouns (CD&V) also negotiated with banks on Monday.
The Flemish Government has also hired an external study agency to analyse the restructuring plan. This should give a clear indication of whether Van Hool has a realistic future after restructuring.
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Entrepreneurs' network Voka is calling on the Flemish Government to quickly set up an employment body for those who will lose their jobs at Van Hool. It points out that there are 500 vacancies in the vehicle industry in the surrounding area. Voka wants affected workers to be supported in their search for a new job.
"This is a huge blow for Flanders," lamented Tom Laveren, managing director of Voka Mechelen-Kempen. "This is about a company that has been in the region for 77 years, an icon in the manufacturing industry in our region. You don't give that up just like that."
Credit: Belga / Eric Lalmand
Facing the consequences
Co-president of the Flemish Greens, Nadia Naji, described the job losses as a "tragedy for the employees and their families who are seeing an income disappear," according to Belga News Agency. Naji pointed the finger at the Jambon government and particularly denounces their procurement policy.
"The Flemish Government can strengthen the industry with its procurement policy by giving large contracts to companies that perform best in terms of sustainability and employment. In this way, companies get direction and know where to work, which strengthens the whole industry and employment. The Flemish Government failed to do that, and now Van Hool is facing the consequences."
