Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Danish wind turbine blade manufacturer, LM Wind Power, has presented a redundancy plan, which will affect 250 jobs at its Ponferrada plant (reducing the workforce to around half). The dismissals are supposed to be carried out through early retirement. If these retirement schemes won't work, the company will implement a redundancy procedure. The works council has approved of the early retirement schemes.
The dismissals are due to the economic downturn in Spain, the unfavourable climate in the wind turbine market and a decrease in demand for LM's products. The workforce at the Ponferrada plant has decreased from 1,200 in 2008 to 450 in 2011, whilst production at this centre has dropped from 932 sets of wind turbine blades to 259 sets. In 2010 LM Wind Power employed 4,676 people worldwide and had factories in 13 different countries.
UPDATE on 02-07-2011 - Employees at LM Wind Power's Ponferrada plant in Spain have approved the firm's redundancy plan, which will affect 250 jobs. Employees who volunteer to accept the redundancy package up until 8 July 2011 will receive 65 days pay per year worked.
UPDATE on 12-07-2011 - LM Wind Power has announced that 75% of the workforce at its Ponferrada plant in Spain has decided to accept voluntary redundancy. This is more than the initially estimated minimum of 250 employees and will leave the firm with 112 workers, compared to 1,200 in 2008. Employees will receive compensation to the value of 65 days pay plus EUR 1,500 (USD 2,106.22) per year worked. The Ponferrada plant is expected to produce one blade per day during the final quarter of 2011.
Eurofound (2011), LM Wind Power, Internal restructuring in Spain, factsheet number 72134, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/72134.