BASF in Feluy to undergo restructuring

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The German chemicals giant BASF announced on 15 June the shutdown of its main production lines at its Feluy site (southern Belgium). The restructuring is expected to result in the loss of 203 of a total of 306 jobs and to slash current production capacity at the Feluy site by 75 to 80%. Management and unions are set to meet on 5 September to begin talks on the social planks of the restructuring plan.

When the plan was announced by BASF's Belgian management in mid-June, workers at the Feluy plant immediately declared a 24-hour strike. 'The workers had fought for the survival of the site and feel that they have been betrayed', explained Manuel Morais, Regional Secretary of Belgian Union of White-Collar Staff, Technicians and Managers (Syndicat des Employés, Techniciens et Cadres de Belgique, SETCa), (the white collar workers' union affiliated with the Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond, FGTB/ABVV). They are particularly concerned because they suspect that the maleic anhydride production line (which will be maintained) could also in time come under threat from Asian competition.

The management of BASF Antwerp (which oversees Feluy) claimed there was no alternative to the shutdown of the unprofitable lines. 'We have to face the facts. These lines have no future', explained Koen Van Raemdonck, Director of Communication for BASF Antwerp. 'New players have come on the scene on the Asian market, where a number of our customers have relocated their companies. We are no longer in a position to export to that market', he added. The Belgian plant has also suffered from high costs and overcapacity in the sector. As a result, production has declined continuously in recent months and Feluy has registered no profits since being taken over by BASF in 2001. On the contrary, in spite of efforts by workers and management at the plant, losses are now in the range of 'two to three figures', said John Dejaeger, Chairman of BASF Antwerp's Management Committee. He nonetheless added: 'We have no intention of abandoning the site.' Maintaining production of maleic anhydride and glycerine at Feluy is expected to save around 100 jobs and the company is offering outplacement possibilities for another 100 or so workers at its Antwerp site. Management has also made a special point of expressing its determination to 'keep the infrastructure intact' so as to attract future investments.

In accordance with the 'Renault Act' (BE9810250F, BE9703202F), the management of BASF Feluy has begun the phase of consultation of the trade unions. During consultations, management is obliged to study possible alternatives. 'But at this stage and on the basis of what is in our possession, we see no alternative to the shutdown of the production lines', it warned.

At the conclusion of a Works Council meeting on 20 July, unions and management agreed to come to the negotiating table on 5 September next. At the July meeting, workers' representatives expressed disappointment over the few concrete responses on management's side to the counter-proposals put together by the common front FGTB-SETCa/ Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) - National Federation of White-Collar Workers (Centrale Nationale des Employés/Landelijke Bedienden Centrale, CNE/LBC) to safeguard a maximum number of jobs in the wake of restructuring. The employees' representatives proposed a possible reduction in working hours (with a system of five teams instead of four), an increase in part-time work, an alternating redundancy system for manual workers and other alternatives to be studied in detail.

At the end of July, there was still little certainty as to how many jobs would be safeguarded. 'We want a guarantee of 110 jobs', explained Manuel Morais (SETCa), 'but we have the impression BASF is keeping 103 because it has to. Employment would be guaranteed for two years. Need I say more? And management can agree to a reduction in working hours, but with a loss of pay.' For the unions, if the talks in September do not move into a more concrete and constructive phase, the industrial relations climate at BASF Feluy could grow even more oppressive.

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