EMCC European Monitoring Centre on Change

Meggle

Company/Organisation:
Meggle

Geographic Location

Country: Croatia
Region: Osječko-baranjska županija; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): City of Osijek

Company

Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.5 - Manufacture of dairy products
Number Employed: 165
Group: Meggle Group

Employment Effects

Announcement Date: 16-07-2020
Planned Job Reductions min: 160
Planned Job Reductions max: 160
Type of Restructuring: Closure
Employment Effect Start: 01-09-2020
Foreseen End Date: 15-12-2020
Direct Dismissals: 160

Additional Information

The Croatia dairy company Meggle Croatia announced that it will phase out its production facility in Osijek by the end of 2020, laying off 160 workers. The restructuring is due lasting business challenges and a series of crises that impacted company's operations - aflatoxins, problems with the Agrokor conglomerate and finally the coronavirus. According to a statement by the Commercial Trade Union of Croatia, this is an unexpected decision.

During the restructuring process, the employer will ensure quality severance packages and social dialogue with workers and relevant bodies. The company explained that over the past 15 years the group had made investments worth HRK 130 million (€17,3 million) in Croatia.

Meggle Croatia is the third-largest dairy company in Croatia.