Production closure

47 jobs to be relocated to Turkey

Production relocated, but new investment in assembly. Nevertheless, 47 employees in Markt Piesting lose their jobs.(Bild: ZVG WEG Piesting)

Gear motor manufacturer WEG Gear Systems in Markt Piesting is outsourcing its production to Turkey from next year. The reason: the pandemic, war in Ukraine, inflation, rising energy costs and exploding labor costs are weakening the business location.

Bad news comes from Markt Piesting, district of Wiener Neustadt. Parts of WEG Gear Systems' production will be outsourced to Turkey by 2026. This is accompanied by the dismissal of 47 employees. "Including some who have been with the company for more than 30 years," says one employee. In the previous years, millions had been invested: "In new machines, in TV screens, in air conditioning systems and in a barbecue for the executive floor," criticizes an insider. "And instead of the Christmas party, there were only 30-euro vouchers for the workforce!"

Social plan demanded, especially for older employees
The company has already presented a redundancy plan. However, Patrick Slacik from the PRO-GE trade union is not satisfied with this. He specifies the demands: "We want older employees in particular to be placed in other departments of the company".

Works Council member Jürgen Baley reports a very tense atmosphere at the moment. The background: "We don't yet know exactly who is affected by the redundancies." This is because there have not yet been any personal discussions. The closure of production came as a great surprise to him. 

Management regrets this step 
WEG Managing Director Bruno Mauro Burdzaki says: "As other measures have not had the desired effect, we have decided to take this step." At the same time, the assembly department in Markt Piesting is being expanded. Some of the employees from the closed departments could find a job here. But: "As things stand at the moment, we will unfortunately not be able to continue to employ 47 of them," says Burdzaki.

"At the moment, it is not yet clear which specific jobs will be affected. Discussions and investigations are still ongoing. It is very important to us that this process is carried out responsibly, transparently and in compliance with all legal and social standards," says the management. 

"We very much regret this necessary step and have drawn up a social plan for these people, which is still being negotiated with the works council and the trade union. For us as a long-standing regional employer, it is important that an acceptable solution is found for everyone involved despite the difficult situation". 

The management also commented on the issue of the "barbecue" and the canceled Christmas party. "The barbecue in question was purchased as part of a general upgrade and for team-building activities and is expressly available to all departments and all employees". And instead of the canceled Christmas party, the decision was made to hold an annual summer party.