Redundancies expected at JLG Maasmechelen
By Maria Hadlow28 January 2011
Continuing low demand in Europe could force JLG to cut the workforce at its Maasmechelen plant in Belgium by over a third. As many as 109 of the 279 current staff could lose their jobs.
At a meeting of the Works Council on 27 January the management of JLG Maasmechelen announced its intention to carry out redundancies at the facility.
JLG said that despite drastic cost cuts and the introduction of temporary unemployment in recent years, additional changes may be unavoidable. It said 101 blue collar and eight white collar jobs at Maasmechelen could be lost.
The plant assembles booms, scissors and telehandlers, including handlers produced for Caterpillar under the manufacturing alliance between JLG and Cat.
JLG's owner, Oshkosh, said in its latest quarterly results (see separate story) that it had made a US$11.3 million charge for planned cost cutting actions in the European access division.
The company said that although some economic recovery was expected in Europe, the access market has not yet rebounded and JLG Maasmechelen had a much lower sales order book than in previous years.
JLG has begun procedures under the so called 'Renault Act', starting with a consultation on collective dismissal plans followed by negotiations.
Robbert Monteban, JLG's director of marketing EAME (Europe, Africa and Middle East) said, "It goes without saying that during this consultation period we aim to operate as 'business as usual' and customers can rely upon [JLG's] superior service level."
JLG Maasmechelen is part of JLG Industries Inc, part of Oshkosh Corp.