A Luxembourg firm specialising in heating and bathroom appliances is set to cut almost a third of its workforce, with its exposure to the country’s struggling construction sector blamed.
A social plan has been agreed for the 24 employees whose jobs are at risk at CFM-Van Marcke, the OGBL union said in a statement on Wednesday.
CFM-Van Marcke currently employs 90 people in Luxembourg and also has subsidiaries in other countries such as Belgium, Switzerland and the USA.
Impact of construction crisis
Due to its indirect link to the construction sector, which has been in crisis for several months, the company had run into economic difficulties.
Almost 40% of total redundancies in Luxembourg last year were in the construction sector, according to a report by the country’s statistics agency Statec earlier this month.
“The social plan now takes into account the length of service, age and family status of the employees concerned to ensure that the measures are tailored to the specific needs of each individual,” OGBL said.
Possibility of transfer
In addition, transfers within the group have been facilitated in order to offer opportunities to employees who wish to continue their career in other subsidiaries of the group.
According to the union, enhanced severance payments have been negotiated for employees who cannot be reassigned in order to offer them fair compensation.
A programme to support business start-ups has been created for employees who want to set up a company, the union said, while easier access to training courses will enable staff to acquire new skills and maximise their chances of professional retraining.
(This article was originally published by the Luxemburger Wort. Translation and editing by John Monaghan)