The manufacturer of personal hygiene products Ontex announced on Thursday that it would reduce its workforce by 489 people at the Eeklo and Buggenhout sites in East Flanders. The company will now have 569 employees in Belgium (in Aalst and Buggenhout). Staff were informed of the closure of the Eeklo site during an extraordinary works council meeting.
This restructuring takes place within the framework of “the strategic transformation of the group aimed at strengthening its competitive position on the European market”. The transformation of activities in Belgium will involve the conversion of the Buggenhout site into a center of excellence for medium and heavy incontinence products. Ontex will invest 40 million euros for this purpose in the coming years. “The research center and commercial activities, including sales and customer services, would remain in place,” management specifies.
The design of feminine care and baby care products in Eeklo and light incontinence in Buggenhout is expected to be transferred to other Ontex factories in Europe, “with the aim of obtaining an optimal cost model to serve the retail and healthcare markets”.
The closure of the Eeklo production site results in the thanks of the 349 workers; the reorganization of Buggenhout will affect 140 workers out of the 528 active on the site. “If the restructuring intention is confirmed, we expect to be able to find appropriate support measures in the interest of all employees affected,” commented Human Resources Director Jonas Deroo.
Based in Aalst, Ontex markets its products in around a hundred countries. The company employs 7,200 people, spread across 17 countries.
A “very heavy” announcement
The news did not completely surprise the Christian union which mentions other social unrest in recent years within the manufacturer of personal hygiene products. “At Ontex, it never stops. It’s restructuring, after restructuring, after restructuring. But this time, they’re not going with the back of the spoon“, comments Carl De Clercq, ACV/CSC representative.
“All production lines disappear”, explains Mr. De Clercq. “Three new ones will see the light of day, but we are left with many questions.” According to the unionist, staff were dejected following Thursday’s presentation of management’s plans.
At the end of 2023, 23 weekend shift worker positions were under threat in Buggenhout. “It was finally agreed that everyone could stay because a large multi-year order had come in from an important customer,” recalls Mr. De Clercq. “And a few months later, this announcement comes. In this context, it’s quite surprising and certainly the scale.”
The CSC, the most important union formation within the company, is not currently calling on staff to take action. A union consultation will begin in order to try to reduce the number of layoffs or obtain severance pay for the staff concerned. The Renault procedure is launched.
Minister Brouns plans to meet management and unions
The outgoing Flemish Minister of Employment Jo Brouns called on Thursday to give “every chance” to social consultation at Ontex. The minister will soon meet the management and unions of the manufacturer of personal hygiene products based in East Flanders.
The announcement “hurts”, recognizes the minister but he calls on management and staff representatives to begin a dialogue “calmly”. “The consultation must show what the impact of this decision is and whether other alternatives are possible.”
The minister has already asked the VDABthe Flemish equivalent of Forem, prepare to support the hundreds of workers affected. “Even if the message is hard to take today, we must see dismissal as an opportunity to bounce back towards new opportunities.”
The resigning Prime Minister, Alexander De Croo, indicated on X that the federal government is in contact with the Flemish executive with the aim of limiting the social impact of the announced restructuring.
The biggest collective dismissal after Van Hool
The announcement of 489 job cuts at Ontex is the second largest collective layoff this year after the closure of bus manufacturer Van Hool in Koningshooikt. A recovery plan was announced in March at Van Hool, initially with the dismissal of 1,100 workers between 2024 and 2027. The company was ultimately declared bankrupt subsequently, resulting in around 2,400 job losses. job.
The manufacturer of personal hygiene products Ontex announced on Thursday that it would cut half of its workforce in Belgium, or 489 workers, spread across Eeklo and Buggenhout.
This total slightly exceeds the collective dismissal announced last February at the chocolatier Barry Callebaut. According to the FPS Employment, 479 positions were affected by this announcement. On Wednesday, the courier company FedEx announced its intention to let go of 385 workers at Brucargo, the freight division of Brussels Airport.
Intentions for collective redundancies are followed by an information phase and consultations with staff representatives. Other solutions can still be found during this phase to limit social damage.
