Barco submits to Works Council a plan for reorganizing its subcontracting activities over a period of three years
KORTRIJK, BELGIUM, 30 September 2003. Barco submitted a plan to the Works Council today for consolidating its electronic module surface mounting activities into a single organization in the course of the next three years. At the current time these activities are still being carried on within each of the three core Barco divisions. The consolidation into a single location in Poperinge, Belgium and a single location in the town of Kladno in the Czech Republic should lead to greater efficiency, thus resulting in significant cost savings.
This consolidation would mean the transfer of 107 full-time jobs out of the three plants in Kortrijk and Kuurne to the plant in Poperinge. Additionally, in the course of the coming three years 113 full-time jobs would disappear from Belgium as a result, on the one hand, of the greater automation of the surface mounting activities and, on the other, of the relocation of these activities to Kladno. This figure of 113 full-time jobs also takes into account the effect of the outsourcing to Taiwan of certain products for the medical market and the recent acquisition of a company that manufactures LED walls in China. It should be emphasized here that Barco will continue the production in Belgium of products involving high added value.The consequences of these displacements for the work force would be spread over a period of three years. The conditions for this process will be the subject of discussion with the personnel representatives. For the jobs that would disappear with the displacement of a number of surface mounting activities to Kladno, a number of possible solutions are envisioned, such as natural redundancies, retraining and the discontinuation of temporary contracts. Barco intends to discuss further layoff arrangements with the employee representatives.
The consolidation of all electronic module surface mounting activities from five plants to two clearly offers a number of significant advantages. Investments, for example, in surface mounting machines and testing equipment could be made more efficiently. Such a consolidation would also have a positive effect on stocks. In addition, the effect it would have of grouping the required competences would be highly advantageous organizationally.
About Barco
Barco, an international company headquartered in Kortrijk, Belgium, is active in three key areas of imaging technology. Barco designs and develops solutions for large screen visualization, display solutions for life-critical applications, and systems for visual inspection. Barco has a network of subsidiaries, distributors and agents in almost 100 countries. Barco is quoted on Brussels/Euronext and is a BEL 20 and a Next 150 company.
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