EMCC European Monitoring Centre on Change

Chemolux

Company/Organisation:
Chemolux

Geographic Location

Country: Luxembourg
Region: Luxembourg (Grand-Duché); Luxembourg (Grand-Duché); Luxembourg (Grand-Duché)
Location of affected unit(s): Foetz

Company

Sector: Manufacturing
Manufacture of chemicals and chemical products
20.4 - Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations
Number Employed: 275
Group: Mc Bride

Employment Effects

Announcement Date: 20-10-2011
Planned Job Reductions min: 91
Planned Job Reductions max: 91
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-03-2012
Foreseen End Date: 30-06-2012

Additional Information

On 5 September 2011, chemicals manufacturer Chemolux announced to cut between 40 and 140 jobs at its plant in Foetz by 1 January 2012. The company currently employs 275 employees.

The job cuts are reported to be a consequence of Chemolux losing its contract with its main customer, the Henkel group. However, from 5 September to 15 November, the workforce will have to work 6 days a week instead of 5 in order to fulfill its obligations towards Henkel.

The final number of job cuts will depend on whether the management finds new customers before the end of 2011.

UPDATE, 23/02/2012 -  After negotiations for a social plan with Luxembourgian trade union OGBL, Chemolux announced that some 47 jobs will be cut immediately, while another 63 by the end of June 2012. OGBL said that its was disappointed by the high number of cuts. 

UPDATE, 07/03/2012 - Chemolux and the trade unions OGBL and LCGB reached an agreement on the social plan envisaging 47 job cuts in March 2012 and another 44 in June. Redundant workers will receive a compensation of at least EUR 12,500.