Audi reaches agreement on Brussels plant redundancy plan
Date
1/28/2025 2:57:06 AM
(MENAFN) German automaker Audi and union representatives have finalized an agreement on a redundancy plan for employees impacted by the impending closure of the company’s Brussels plant. Production at the facility, which employs approximately 3,000 workers, is scheduled to end by late February.
Under the terms of the agreement, Audi will provide employees with compensation packages that exceed legal requirements. Factory workers will receive severance pay amounting to twice the legally mandated amount, along with additional bonuses based on their length of service. According to local media reports, workers with 30 years of seniority will be eligible for gross compensation ranging between €200,000 and €400,000 (USD209,000 and USD418,000), depending on their roles and salaries.
The closure of the Brussels plant stems from Audi’s restructuring plans, announced in July 2024, as a response to declining demand for the Q8 e-tron, an electric luxury vehicle produced at the site. The company plans to continue manufacturing the model at its facilities in Mexico. However, the decision to end production in Brussels has raised concerns among employees and unions, particularly after Volkswagen Group, Audi’s parent company, confirmed in September that no new models would be allocated to the plant.
Efforts to find new investors for the Brussels factory were unsuccessful, leaving no viable alternative to the closure. This outcome highlights the challenges faced by the automotive industry as it navigates shifting market demands and evolving production strategies.
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