Accell Group briefed its labor unions last week on plans to lay off 10 percent of its Dutch workforce. The Netherlands largest bicycle manufacturer said it will merge production of its Batavus and Sparta bikes in its headquarters city of Heerenveen and, consolidate storage and distribution of Juncker bike parts as well as warranty parts for Batavus, Koga and Sparta at a currently empty warehouse in Apeldoorn. The relocation will result in a loss of approximately 60 jobs.
The further decline of the Dutch bicycle market forces us to make a more drastic adjustment with regard to the organization in the Netherlands, said René Takens, CEO of Accell Group. Combining the production activities of Batavus and Sparta enables us to achieve acceptable capacity utilization. Unfortunately this means we need to part from several loyal employees and call on the flexibility of the rest of the staff for the changes to work. We assume the proposed decisions are an appropriate response to the challenges of the market.
The adjustments to the Dutch organization, with a total workforce of 595 employees, will be conducted in phases during the period from August 2013 until December 2014.
Accell has asked its unions, represented by the Central Works Council, for advice on the proposed decisions and their execution. Together with the trade unions consultation will be commenced regarding a social plan for the employees involved.
The reallocation of the activities in the Netherlands will result in structural cost savings amounting to € 2 to 3 million on an annual basis from 2014 onwards. The recurring costs for which a provision will be taken in the results over 2013 are expected not to exceed the yearly cost savings.
