Performance review: Restructuring

Location Objective / challenge 2010 Performance  Next step
L’Assomption, Canada(authorized closure)
Closure of the cooking factory in 2013.
  • Agree on social plan for the 1,300 affected employees.
  • Relocate production to Memphis Tennessee, USA.
  • Initiated discussions with stakeholders on closure.

 

  • Continue to develop social plan.
  • Dialog with local government authorities.
  • 75 jobs at the on-site R&D centre will continue for a further six to 12 months after closure.
  • Construct a new factory in Tennessee and start production in 2013.
Revin, France

Downsizing of the washing machine factory.

Reduction of manpower with 98 employees.
  • Out of 98 affected employees, 71 were offered early retirement.
  • 27 received severance packages.
  • Downsizing completed in Q4, 2010
 
St. Petersburg, Russia
Closure of the washing machine factory, in 2010.
 Provide job support and training for 215 affected employees.
  • Initiatives included outplacement programs.
  • Electrolux made direct contact with potential new employers.
  • Severance packages for all employees, based on length of employment and age.
  • Closure was completed in Q2.
 
Alcalà, Spain (authorized closure)
Announcement of the closure of the washing machine factory in 2011.
  • Pursue external investors to also provide jobs for affected employees.
  • Relocate production to Rayong Thailand.
443 employees affected whereof:
  • 61 entered early retirement
  • 83 received partial contract
  • 202 seeking employment receiving severence packages 
  • 97 employees received employment with new owner(s).
  • Rayong was audited for Code of Conduct com-pliance by a third party assurer
  • Finalize agreement with new owner(s).
Motala, Sweden
Announcement of the phase-out of cooker production by year-end 2010.
  • Smooth transition to new buyer of the Motala factory, including rehiring of plant personnel.
  • Relocate production to Swidnica, Poland.
  • New owners are Borö AB, heat pump and solar energy panel suppliers.
  • Decided to delay factory closure to Q2, 2011.
  • 240 employees affected whereof:
  • 30 entered early retirement
    Approx.
  • 100 new jobs with the new owner (including capacity for remaining Electrolux production that requires 65 employees).
  • Swidnica was audited by a third party for Code of Conduct compliance and employees have under-gone training in the Workplace Standard.
  • Transfer of approx.100 employees to new owner in Q2, 2011.
  • Continue the search for replacement jobs for the remaining 110 people.
  • They will receive requalifica-tion training and other job support in order to be hired either by the new owner or by external companies.

Webster City and Jefferson, Iowa, USA (authorized closure)
Closure of vacuum cleaner production and laundry prod-uction in Q4, 2010 (Jefferson) and Q1 2011 (Webster City).

  • Coordinate employee support with city/state/federal governmental agencies.
  • Job support and training for affected employees.
  • Relocate production to Juarez, Mexico.
  • 940 employees affected. Work with the Iowa Workforce Development Agency to arrange for delivery of state and federal programs and benefits to employees. To date 345 employees are accessing benefits.
  • Code of Conduct and environmental policy audits were conducted in two of three Juarez plants.
  • 493 people will remain in employment until Q2, 2011.