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.
Aarschot, Berlaar, Diest, Dinant, Eupen, Genk (Stadsplein), Herstal, Kortrijk Ring, La Louvière, Lommel, Oude Vest (Dendermonde), Tubize, Turnhout and Verhaeren (Schaarbeek)
Sector
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale In Non-Specialised Stores 47.11 - Retail sale in non-specialised stores with food, beverages or tobacco predominating
2,082 jobs Number of planned job losses
Announcement Date
11 June 2014
Employment effect (start)
1 January 2015
Foreseen end date
31 December 2017
Description
Food retailer Delhaize Group announced plans to implement a restructuring plan envisaging the closure of 14 company–operated stores and the reorganisation of its headquarter operations in Belgium. As announced, up to 2,500 jobs might be affected and salaries and working conditions of the remaining personnel will be reviewed. According to the sources the cost-cutting measure will take place in the next 3 years (2015-2017) and may affect sites in Aarschot, Berlaar, Dendermonde (Oude Vest), Diest, Dinant, Eupen, Genk, Herstal, Kortrijk (Ring), La Louvière, Lommel, Schaarbeek (Verhaeren), Tubize and Turnhout).
The group has announced its intention to avoid forced dismissals; blue collar workers are expected not to be affected by the plan. In addition to the job reduction measures, the group intends to invest €450 million as part of its strategic commercial plan. The sources report that the restructuring is due to the growing competition in the sector in combination with the difficult economic environment and a growing structural cost gap in terms of workforce salaries and working conditions.
Delhaize Group operates in 9 countries with a global workforce of 160,000 people.
Updated, 08-09-2014: As reported, Delhaize has confirmed its plans and negotiations are still ongoing.
Updated, 19-12-2014: As reported, a general agreement on the previously announced restructuring plan has been reached among the trade unions and the Delhaize management but the final decision will be made in January 2015. According to the sources the final number of planned job reductions is expected to be revised down.
Updated, 27-02-2015: A final agreement on the restructuring plans has been made between the management of supermarket chain Delhaize and the trade unions. 2,500 jobs will not now be cut as announced in June 2014 as a programme of early retirement has been organized for employees aged 55 years or more. Nonetheless, 1,800 employees will lose their jobs.
Updated, 30-10-2015: 2,082 employees have decided to leave the company. This number exceeds the targeted 1,800 and will increase the restructuring costs.
Sources
11 June 2014: Le Soir
11 June 2014: De Standaard
11 June 2014: Delhaize (Press Release)
8 September 2014: Lecho
Citation
Eurofound (2014), Delhaize Belgium, Closure in Belgium, factsheet number 77296, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/77296.
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