Unions angered by Circuit Foil redundancy plans
OGBL and LCGB say the copper foil manufacturer should have set up a job maintenance plan
The announcement by Circuit Foil Luxembourg on Tuesday that it has started consultation with the company’s staff delegation to set up a social plan affecting around 30 staff has sparked a strong response from the country’s two main trade unions, the OGBL and the LCGB.
The copper foil manufacturer based in Wiltz has blamed a “macroeconomic deterioration of the market” for the decision. Demand for 5G has stagnated for the company which employed 360 at the start of this year, according to an annual report by national statistics agency State. Increased competition from Asia hurt international sales, which fell by 20% in 2022 and by another 10% so far in 2023, Circuit Foil Luxembourg said.
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Indeed, at a meeting in July, management had informed staff and union representatives that it would not be renewing fixed-term employment contracts.
But it is precisely the fact that management were aware of the situation before the summer holidays that has angered the unions. The OGBL says that in July it had proposed setting up a job maintenance plan. “A proposal unfortunately rejected out of hand by management,” the union said in a statement Tuesday.
On Wednesday the LCGB also issued a statement, saying the social plan approach was “totally unacceptable and disrespectful of the social dialogue practised in the company.”
The redundancy plan would cut nearly 10% of the workforce at the Wiltz site, most of whom would be administrative and technical staff. According to the company, the move is “necessary to safeguard the overall competitiveness of the Luxembourg CFL business in an increasingly challenging international environment.”
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Both unions are urging management to abandon the redundancy plans and begin negotiations for a job maintenance plan.
“It has to be said that some employers still do not want to understand, or worse, ignore and flout social dialogue in Luxembourg,” the LCGB said. Meanwhile, the OGBL and the staff delegation say they are “prepared to use all the means at their disposal to safeguard jobs at Circuit Foil Luxembourg. “
The companies products are is used in bank-card chips and smartphones and its South Korean owners in 2018 announced plans for a €7.5 million investment in Luxembourg to move into the electric car battery market. Its CEO of six years, Fabienne Bozet, left at the start of this year. She was replaced by Sang Beom Kim.
