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Netherlands – Auto factory says 800 temps among those being laid off after BMW cancels contract

05 June 2023

VDL Nedcar plans to lay off 800 temporary workers and 1,000 traditionally employed workers by 1 November at its auto factory in Born, Netherlands. The move was announced 1 June and will leave VDL’s auto factory with 2,100 employees. Further reductions could take place around in March 2024.

The company is also switching to one-shift operations; it submitted a formal request to the Works Council for consent to switch to a day shift and for advice on the reduction of employees last Thursday.

BMW cancelled a contract to produce cars at the factory, although a limited extension of building current models will run through 1 March 2024.

“After BMW’s termination of the 2030 contract, we have fought extremely hard for the right connection through car production,” John van Soerland, managing director of VDL Nedcar, said in a press release. “We have not succeeded so far. Ultimately — due to turbulent conditions in the car market — time has proved too short to keep the entire population employed. We regret this and to our employees who will lose their jobs, we are sorry.”

The current social plan, signed in 2021, is valid until April 2024 and the safety net is almost double the legal compensation, according to the company. It has also added a “finish with pride” bonus of up to €7,500.

VDL Nedcar said it is also making every effort to secure employment for as many employees as possible.

The company is an independent car manufacturer that produces cars on behalf of third parties.