EMCC European Monitoring Centre on Change

Caterpillar

Company/Organisation:
Caterpillar

Geographic Location

Country: Belgium
Region: Arr. Charleroi; Prov. Hainaut; Région Wallonne
Location of affected unit(s): Gosselies

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.2 - Manufacture of other general-purpose machinery
Number Employed: 2155
Group: Caterpillar

Employment Effects

Announcement Date: 02-09-2016
Planned Job Reductions min: 2101
Planned Job Reductions max: 2101
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 03-04-2017
Foreseen End Date: 31-07-2017
Direct Dismissals: 2101

Additional Information

Caterpillar, an American manufacturer of construction and mining machinery, has announced the closure of its facility in Gosselies with the loss of over 2,000 jobs. The company's distribution centres in both Zeebrugge and Grimbergen will not be affected but all manufacturing production will be moved from Gosselies to the company's site at Grenoble in France as well as other international sites outside Europe. Company representatives attributed the planned closure to the excessive size of the production area at Gosselies, associated higher production costs as well as the possibility to produce elsewhere at lower cost. Faced with a decline in demand for its products due to weak commodity prices, the company announced a global restructuring plan in September 2015 involving between 5-10,000 job losses. 

Trade unions have criticised Caterpillar management for favouring the interests of shareholders and neglecting those of their employees. No concrete actions by the different trade unions have been announced yet. According to RTBF, based on copies of the company's formal notification to the Belgian employment services of the impending collective dismissal, nearly all of the job losses will take place between April and July 2017.

In an earlier restructuring announced in 2013, over 1300 employees were made redundant from the Gosselies facility.

 

More information on  the Latest working life developments in Belgium Q3 2016.