Type
Relocation
Country
Croatia
Region
Hrvatska; Jadranska Hrvatska; Istarska ┼żupanija
Location of affected unit(s)
Labin
Sector
Manufacturing
Manufacture Of Material For Textiles, Apparel, Leather And Related Products
Manufacture Of Textiles
13.2 - Weaving of textiles

159 jobs
Number of planned job losses
Job loss
Announcement Date
14 February 2015
Employment effect (start)
2 March 2015
Foreseen end date
31 July 2015

Description

Benetton is to close its textile in Labin and lay off all 159 employees.

Due to a decrease in sales, Benetton has no longer an interest in maintaining production in Labin, and will move the production to Osijek, an already opened, larger factory that employs more workers.

Representatives of the trade unions were invited to a meeting with the employer and the director of production of the Olimpias Group (the group that took over the entire industrial sector of Benetton in textile production). There the director announced the plans to close the plant and move production Osijek, where the plant already employs 282 workers.

The employer is willing to pay to workers severance payment in the amount of one third of the yearly salary, or a maximum of three salaries, because the factory started to work nine years ago. The trade union is demanding that employer pays to every worker one salary per one year of work.

Benetton's production hall was built in 2006 in the industrial zone Vinez, and the investment was worth EUR 16 million. In June 2013 the factory was awarded the recognition of County Office of Pula -Croatian Chamber of Economy as the most successful company in Istria County in 2012 in the category of large companies.


Sources

  • 14 February 2015: Banka.hr

Citation

Eurofound (2015), Benetton, Relocation in Croatia, factsheet number 78461, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/78461.