Filing for a company's bankruptcy or petitioning for the suspension of payments usually spells trouble for its workers, but a Dutch case at the beginning of June 1999 suggests that it can also provide an effective way for employees and their representatives to bring pressure to bear on their employer.
Download article in original language : NL9906147NNL.DOC
Filing for a company's bankruptcy or petitioning for the suspension of payments usually spells trouble for its workers, but a Dutch case at the beginning of June 1999 suggests that it can also provide an effective way for employees and their representatives to bring pressure to bear on their employer.
Customarily, it is a company itself or its unpaid creditors that file for bankruptcy. Employees or trade unions seldom request such action. At the beginning of June, however, three trade unions (FNV Bondgenoten, Dienstenbond CNV and De Unie) decided to file for bankruptcy in the case of Pharma Bio Research in Zuidlaren, when financial problems resulted in employees being unpaid and deprived of holiday pay for some time. According to a CNV official, this move was intended mainly as a way of exerting pressure to bring about a solution - namely, a company takeover.
In a more conventional case, on 5 June 1999, the YVC IJsselwerf shipbuilders yard in Capelle filed for suspension of payments. The shipyard ascribed its lack of orders to stagnation in the global market. YVC employs a total of 265 workers at two locations. According to the trade unions involved, represented by FNV Bondgenoten, the move was taken to allow withdrawal from new ship construction activities. The union spokesperson indicated that YVC's technology department had been re-established as a separate private company with limited liability (BV) only two weeks prior to the petition for suspension of payments. In so doing, the parent company would be able to maintain its existing level of in-house expertise. In addition, according to the union president, management had announced shortly beforehand that the shipyard would in any event remain afloat until at least October 1999.
Apparently, the impending demise of YVC came partly as a result of the takeover by "Wilton Feijenoord", which focuses primarily on restoration rather than new construction activities. Although in this case suspension of payments was intended as an interim measure, it generally ends in bankruptcy.
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Trade unions file for bankruptcy of company, article.
