Slovenija; Podravska;
Location of affected unit(s)
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.81 - Manufacture of sugar

197 jobs
Number of planned job losses
Job loss
Announcement Date
6 October 2006
Employment effect (start)
1 April 2007
Foreseen end date
30 June 2007


Tovarna sladkorja Ormoz (TSO - Sugar Factory Ormoz), the sugar producer owned by the foreign investors (57% owned Dutch Cosun and 24% owned an Italian company), employs currently 197 people. Since recently, TSO has been facing a serious threat of being closed. The reason is that the new EU Sugar Market Regulation will result in the reduction of the EU annual sugar production by 5 to 6 million tonnes and the small and less efficient sugar producers are likely to close their plants. However, the EU offers compensation for those sugar factories which decide to stop the production. The Dutch majority owner proposes to discontinue the sugar production in TSO and counts on receiving the compensation for sugar factory's restructuring. The money would be partly used to pay the shareholders and partly to compensate the dismissed employees. Some parts of production facilities would be reoriented to the production of bio-ethanol saving some 30 to 50 jobs. But the Dutch owner is not very optimistic about the efficiency of the potential bio-ethanol production. In addition, there are Slovenian sugar beet producers having contracts with TSO, which are assumed to be compensated as well.

According to the latest information on 19 January 2007 all employees of the company are to lose their job. The agreement between the employees and the owner defines compensation for dismissal, which is considerably higher than in similar cases in Slovenia. The law says that the compensation should be a half of monthly gross salary for each year of employment within a company, but maximum 10 years is taken into account. However, collective agreement for food industry is much more favourable for employees. It says that an employee gets one full monthly gross salary for each year if the activity in which he/she is employed will be completely abandoned in Slovenia. This is the case of TSO. It means that employees who are 25 years with TSO will get compensation amounting to 25 their existing monthly gross salaries. Additionally, the existing wages will be increased by 27% and this will be taken as the basis for the calculation of compensation.


  • 19 January 2007: Delo
  • 6 October 2006: Finance


Eurofound (2006), Tovarna sladkorja Ormož, Closure in Slovenia, factsheet number 64187, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64187.