Type
Closure
Country
Hungary
Region
Alfod es Eszak; Del-Alfold; Bacs-Kiskun
Location of affected unit(s)
Kiskunhalas
Sector
Manufacturing
Manufacture Of Material For Textiles, Apparel, Leather And Related Products
Manufacture Of Wearing Apparel
14.13 - Manufacture of other outerwear

549 jobs
Number of planned job losses
Job loss
Announcement Date
20 March 2009
Employment effect (start)
1 May 2009
Foreseen end date
30 June 2009

Description

In March Levi Strauss' representatives arrived from the regional centre in Brussels to Kiskunhalas to inform the local management, workers, the employment centre and the local government that the local factory, currently employing 549 people, will be closed down. Though initially the company feared the situation would escalate as a result of the workers' discontent, an agreement between Levis Strauss Europe, Middle-East and Africa (LSEMA) and workers representatives had been forged by 20th March. The agreement acknowledges the closure of the plant in May or June, until then workers will carry on working. They will receive a greater package of severance payment. Production of jeans in the facility began in 1988 with 1.7 million pairs of jeans produced last year. The company justified its decision with the shortfall of demand, the closure also fits with the management's plan to outsource production.


Sources

  • 21 March 2009: Népszabadság ()
  • 21 March 2009: Világgazdaság ()
  • 21 March 2009: Portfolio (www.portfolio.hu)

Citation

Eurofound (2009), Levi Strauss, Closure in Hungary, factsheet number 68774, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/68774.