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.
Manufacturing Manufacture Of Material For Textiles, Apparel, Leather And Related Products Manufacture Of Wearing Apparel 14.1 - Manufacture of wearing apparel, except fur apparel
140 jobs Number of planned job losses
Announcement Date
12 May 2019
Employment effect (start)
30 April 2019
Foreseen end date
15 May 2019
Description
The Turkish owned garment factory Sonmez International, based in Djebel, formerly providing employment to thousands of workers, announced bankruptcy on 15 April and sent termination notices to workers. It will dismiss all of its 140 workers.
The CEO confirmed there are potential buyers and that the management wants to finalise the deal quickly, so that the workers can retain their jobs with the new owner. According to him, the workers representatives at the factory also supported such an arrangement and 80% of the workers would like to stay.
The mass dismissals were reported to the Labour Inspectorate on 30 April and caused discontent among some workers. They sought help from the Confederation of Independent Trade Unions in Bulgaria (CITUB). Even though they are not represented in the factory, CITUB decided to help protect the workers’ rights. Trade unions claim that instead of terminating the contracts 1 month after the notice, on 15 May, the company has been obliging workers to sign mutual termination agreements. This would mean that 2 months’ gross wages will not be paid and the workers will not have the full unemployment benefits from the employment agency. The CEO stated that the company observed the mass dismissals procedure, which was confirmed by the Labour Inspectorate following a thorough inspection.
The owner is selling the factory in Bulgaria after having sold his factories in Bursa, Turkey 2 years ago. This occurred due to the fall in demand from big brands due to Brexit.
Eurofound (2019), Sonmez international, Bankruptcy in Bulgaria, factsheet number 97723, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/97723.
Digitisation and automation technologies, including artificial intelligence (AI), can affect working conditions in a variety of ways and their use in the workplace raises a host of new ethical concerns.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions.
European labour markets have recovered strongly from COVID-19. By the end of 2021, little more than 18 months after the start of the pandemic, employment rates in the EU were almost at pre-crisis levels.
