Kodak redundancy plan agreed following threat of court case

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Negotiations over a redundancy plan to accompany the closure of Kodak's production plant at Soestduinen in the Netherlands were broken off at the beginning of September 1998. However, following a threat by employees to take the company to court, Kodak reached an agreement in principle with trade unions.

Negotiations over a redundancy plan between trade unions and management at Kodak Polychrome in Soestduinen in the Netherlands almost reached total stalemate at the beginning of September 1998. The US-based Kodak wants to transfer the production of photographic films, paper and chemicals to the USA, as a result of which just under 200 workers at Soestduinen will be made redundant (NL9808197N).

On 7 September, management broke off discussions for the second time. The most important points of disagreement were financial compensation for all workers and special provisions for workers aged 55 and over. At the end of August, the company had offered compensation of eight months' pay for a 55-year-old worker with 40 years' service, while, according to the unions involved, in similar situations 50 months' pay was usual. The demands of the unions reportedly ran into difficulties when the American parent company refused to make the necessary funds available.

In the meantime, workers at Kodak went on strike twice in order to force a better settlement. The first two-day strike started on 1 September, and involved almost all the company's employees. According to the unions, only seven out of 200 workers reported for work. The second strike started one week later. The workers also announced that they would try to enforce an acceptable redundancy plan through the courts, with the help of union lawyers. Furthermore, the works council made preparations to commission an inquiry into the possibility of continuing to operate the company in a reduced form.

This pressure resulted in a reopening of negotiations. On 24 September, Kodak and the unions reached an agreement in principle. Employees older than 57.5 years will receive 85% of their present pay until reaching their pensionable age. Employees older than 40 will be paid one-and-a-half or two months' pay for each year of service. Furthermore, Kodak will assist employees with finding a new job and will top up their pay to the present level. According to the unions, the works council supports the outcome of the negotiations.