Autoeuropa modernisation will cause 13 days of stoppages in July

The Autoeuropa car plant in Palmela, near Setúbal has decided to apply a layoff regime for 3,742 of its 4,900 staff for a period of 13 days this month.

With eight days of layoffs already made in June, the company that produces Volkswagen cars says that the layoffs were necessary to complete a process of decarbonisation and changes to the technology of machines at the factory which are required to produce new car models.

The company informed the Inspectorate-General for the Authority for Labour Conditions which in turn confirmed that the layoffs are legal and were made after prior consultation with the workers.

On Thursday, directors from Autoeuropa told a parliamentary committee that the company had chosen to lay off workers not to finance investments, but to manage around 60 days of production stoppages because the car plant was being modernised.

“When referring to layoffs here, we don’t necessarily mean investment. The investment is what causes the stoppages and the need to manage this production stoppage,” said Dieter Neuhausser, member of the Board of Directors and director of Human Resources at Autoeuropa’s car factory.

“When a company stops production for 60 or possibly more days – 70 or 80 days, whatever – the question for management is how to do it. The means we have collective vacations. This means an hours bank. But I don’t know of a company that has a 60-day shutdown availability, especially when they are in continuous operation,” added Dieter Neuhausser.

He said that all obstacles with Social Security had been sorted out and that the entire process had been scrupulously met.

Dieter Neuhausser also pointed out that the stoppage of the painting section would “prevent production” at the factory for a long period, estimated at about 60 days.