Restructuring plans threaten jobs at pharma company Novartis' Belgian site
Swiss pharmaceutical giant Novartis has announced a restructuring plan that could affect 192 jobs at its Belgian site in Puurs, Antwerp province, including 170 potential redundancies. This is the latest round of restructuring at the site, following similar moves in recent years. Union representatives have described it as an "annual tradition" and expressed concern about repeated job cuts.
The company attributed the decision to declining volumes in its eyecare portfolio and external cost pressures such as energy prices and labour costs, which have led to higher unit costs. Despite these challenges, Novartis has signalled its confidence in the future of the site by committing to invest 40 million euros in the Puurs site by 2025 to expand biologics production capacity and attract manufacturing for other companies' products.
Consultation phase
The restructuring process has entered the consultation phase under the Renault Law, a labour law introduced in 1998 to regulate collective redundancies. This law requires employers to enter into a consultation period with trade unions before implementing redundancies and sets out provisions for redundancy payments. It was introduced following the controversial mass redundancies at Renault's Vilvoorde plant in 1997.
Novartis said it would work closely with the social partners and keep employees informed throughout the process, as well as offering support for mental health and well-being.
"This decision is harsh, especially as Novartis is a highly profitable company"
Trade unions have given mixed reactions, acknowledging the investment as a positive step but lamenting the impact on the nearly 200 affected employees and their families. "This decision is harsh, especially as Novartis is a highly profitable company," said union representative Danny Absillis.
The Puurs site, which employs 1,160 of Novartis' 1,750 employees in Belgium, will face weeks of intense discussions as unions and management seek solutions to minimise job losses and provide clarity for those affected.
#FlandersNewsService | © PHOTO BELGIAN FREELANCE
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