Type
Closure
Country
Spain
Region
Este; Cataluña; Lleida
Location of affected unit(s)
Alcarrás
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.82 - Manufacture of cocoa, chocolate and sugar confectionery

227 jobs
Number of planned job losses
Job loss
Announcement Date
3 March 2005
Employment effect (start)
3 March 2005
Foreseen end date
30 June 2005

Description

The company Joyco is specialised in the production of sugar-made chewing gums and is based in Alcarrás (Lleida, Catalonien, Spain). The company is owned by the American consortium Wrigley and has another factory in Tarazona (Zaragoza, Aragón, Spain). On 3rd March 2005, the Consortium Wrigley announced the closure of the factory of Alcarrás creating 227 redundancies. The management has decided to relocate 90 of the Alcarrás centre´s workforce to the Tarazona production centre.

The closure of the plant is to take place in June 2005. The main reasons indicated by the management for the closure have been the decrease of sales of the sugar-made chewing gums, more than €6 million in years 2002-2004 in comparison to other non-sugar elaborated chewing gums plus the high labour costs between the Tarazona(16.82 €/hour) and the Alcarrás(26.43 €/hour) centres.

The closure of the plant will affect the plant of Barberá del Vallés (Barcelona, Spain) which produces ingredients such as basic gum for the Alcarrás centre.

On 9 June 2005, a final agreement between the management, labour representatives and regional authorities has been reached. The agreement considers the relocation of 90 of the plants workforce to the Tarazona plant (Aragón, Spain), lay-off incentives up to € 15.000 brutto per year worked or 55 days salary per year worked for workers over 54. Other agreed measures are lay-off incentives of up to 80 % of salary for workers over 57 years of age, 90 % of the salary for workers over 58 to 60 years of age and the total of the salary for workers over 60 years of age.


Sources

  • 25 March 2005: El País
  • 4 March 2005: El País
  • 9 June 2005: Expansión

Citation

Eurofound (2005), Joyco, Closure in Spain, factsheet number 61232, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/61232.