Type
Offshoring/Delocalisation
Country
France
Region
Bassin Parisien; Centre; Cher
Location of affected unit(s)
Aubigny-sur-Nère
Sector
Manufacturing
Manufacture Of Basic Metal And Fabricated Metal Products
Manufacture Of Fabricated Metal Products, Except Machinery And Equipment
25 - Manufacture of fabricated metal products, except machinery and equipment
New offshoring locations
Portugal

180 jobs
Number of planned job losses
Job loss
Announcement Date
11 October 2016
Employment effect (start)
1 January 2017
Foreseen end date
1 January 2019

Description

The management of Mecachrome has announced to its Works council to cut about 180 positions by 2019 on a total workforce of 550 employees. The reorganisation plan aims to transfer about 20% of the production to Portugal where labour costs are lower. According to an expert, the production of some of the machines elements is no more competitive in the plant of Aubigny-sur-Nère which needs to focus on added value products. The union FO has asked a new expert to check the economic grounds of this project. The union CFTC highlights that on 180 job cuts, about 130 will result of non replacement of departure in retirement and non renewals of temporary workforce. Finally, about 50 employees may be dismissed even if the management will propose positions n other sites in France, at Amboise (Indre-et-Loire), Sablé-sur-Sarthe (Sarthe), Nantes (Loire-Atlantique) or Toulouse (Haute-Garonne).


Sources

  • 28 October 2016: Le Berry Républicain

Citation

Eurofound (2016), Mecachrome, Offshoring/Delocalisation in France, factsheet number 89015, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/89015.