EMCC European Monitoring Centre on Change

Vestas

Company/Organisation:
Vestas

Geographic Location

Country: Spain
Region: León; Castilla y León; Centro
Location of affected unit(s): Villadangos del Páramo

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.11 - Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
Number Employed: 2000

Employment Effects

Announcement Date: 27-08-2018
Planned Job Reductions min: 362
Type of Restructuring: Offshoring/Delocalisation
Direct Dismissals: 362

Additional Information

The Danish multinational Vestas (dedicated to manufacturing, sale, installation and maintenance of wind turbines) has announced a collective dismissal of the entire workforce of their plant in Villadangos del Páramo (León), affecting up to 362 employees. The company argues that the reason for the dismissal is the low demand in Southern Europe of wind turbines manufactured in León. Production is presumably moving to factories in Argentina and Russia.

Workers have been on indefinite strike since July 16, after the company announced the relocation of three of the four production lines of the Villadangos del Páramo factory to China and India. The company dismissed 180 casual workers in July.

Update 08/10/18: Vestas workers representatives in León and the Danish company have agreed a redundancy plan with the support of more than 90% of the workers of the factory. Among other measures, the agreement includes a plan of relocation and reintegration in the labour market with the possibility of relocating to other factories and work centers of Vestas inside and outside Spain (an external re-location company will monitor this plan for 24 months). In addition, there are special measures for older workers (partial retirements and voluntary leave incentives), compensations over legal minimum (67 days per year worked), and the commitment on the part of Vestas to preserve adequately the factory in order to favour a possible reindustrialization of the plant in the future through new investors.

Sources: