Lecta's Condat paper mill in France completes employee consultations involving layoffs for proposed shutdown of PM No. 6, effective July 1; to optimize the mill, investments will be made in two other production lines this fall, completed by year-end

LUXEMBOURG , June 13, 2013 (press release) – The meeting of employee representatives held June 13, closes the period for consultation of staff representative bodies begun on 22nd March 2013 in the framework of Condat’s industrial restructuring plan, including stoppage of line 6 and its consequences for employment.

At the end of this meeting the employee representatives delivered their opinion.

Condat’s management has done everything possible to preserve jobs and keep the number of forced layoffs down. The initial project submitted to the workers’ elected representatives on 22nd March 2013 envisaged the elimination of 144 jobs. Five of these positions have been kept through the negotiations with the representative bodies, which leaves the number of jobs eliminated at 139. Incentives have furthermore been provided to facilitate voluntary early retirement as well as other kinds of voluntary redundancies (business creation, workforce transition …). Any voluntary redundancy will enable the redeployment of an employee whose job is in jeopardy.
These measures should result in significantly reducing the number of forced layoffs.

The stoppage of line 6 will take effect as from 1st July 2013.

The first dismissal notifications will be made from 31st July 2013 and will be scaled out until the end of 2013.

Condat is not the sole organisation in the Lecta Group affected by restructuring. Cost reduction measures are under way at all the other firms in the group.

Consultation and social dialogue

Management has been sensitive to the concerns of the social partners involved throughout the consultation period.
The quality of the dialogue between Management and social partners has, after over 20 negotiation meetings, made it possible to work out a set of measures enabling a tailor-made response to each different situation.

Staff support conditions have been got under way in association with a specialised organisation since 16th May 2013 in order to reach a redeployment solution specifically targeted for each of the employees concerned, either internally or in the job pool.

Adaptation of the industrial system

Management foresees investments from this autumn in order to optimise the operation of the other two production lines with a view to extending their grammage ranges. These investments should be operational by the end of 2013.
Until these aspects are operationally commissioned, the manufacture of these products will temporarily be handled by other firms in the Lecta Group.

Management reassurance as to the future of Condat

It is practically impossible for the management to make forecasts for the future in the present economic setting. Well aware of its social responsibility, nevertheless, it seeks to reassure and confirm its wish to do everything possible to ensure the endurance of the Condat site and preserve jobs in Dordogne.

About Condat:

Condat is a member of the Lecta group, the second-largest European producer of coated paper. Lecta consists of three companies: Torraspapel (Spain), Cartiere del Garda (Italy) and Condat (France).

Condat specialises in the manufacture and marketing woodfree coated paper. The company showed a turnover of 456 million euros as of 31st December 2012 and has 658 employees.

IndustryIntel editor's note: PM No. 6 at the Condat mill in France has a production capacity of 130,000 tonnes per year of coated freesheet paper, according to a March 18, 2013 company press release posted the same day on IndustryIntel.com.

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