Explosive suspicion

Age discrimination? Swarovski in the AK’s sights

Tyrol's AK boss Erwin Zangerl is not on good terms with the Swarovski management.(Bild: Christof Birbaumer)

The world-renowned crystal group Swarovski, headquartered in Wattens, Tyrol, cannot escape the negative headlines: Following the recently announced job cuts of around 400 positions, the Chamber of Labor is once again attacking the company management head-on: "Suspicion of age discrimination - employees over 55 to be systematically made redundant!"

More than 4,000 jobs have been cut at the Tyrolean flagship company Swarovski in Wattens since 2007. Since the beginning of November, it has been clear that 400 more jobs will be cut. While the workforce is almost resigned to the negative developments of recent years ("It is probably only a matter of time before production disappears completely from Wattens"), there was a huge outcry from the Tyrolean Chamber of Labor, among others.

At the time, AK boss Erwin Zangerl spoke of a "declaration of bankruptcy" and once again took the company management to task. Now the AK has come up with further bad news. "The signals now coming from the Group management do not bode well for the employees and the location," it said on Wednesday.

The glory days at Swarovski seem to be over.(Bild: Christof Birbaumer)

Savings in cleaning and explosive suspicions
What does that mean? "Not only is the cleaning of office space and workplaces or production facilities now to be taken over by the employees themselves, but there are also increasing indications that employees over the age of 55 are to be systematically dismissed or forced into early retirement," the Chamber of Labor said.

"Group management is under observation"
AK boss Zangerl made it clear that he would "not tolerate any form of age discrimination". "If this is the case, we will take a close legal look at each case and also take legal action against it. Because this is not a trivial offense, but a violation of applicable labor law regulations." Zangerl also made it clear that the Group management and its conduct towards employees would be under observation in any case.

If this is the case, we will take a close legal look at each case and also take legal action against it.

Erwin Zangerl, Tiroler AK-Präsident

Bild: Johanna Birbaumer

The Tyrolean AK President also once again harbored the suspicion that "Wattens should no longer play a role in Group policy".

Cleaning staff just for the loo?
There are further "clear alarm signals for the erosion of the Wattens site". "Not only are the work premises, with the exception of the sanitary facilities, to be cleaned by the employees themselves in future, but also - despite the poor order situation - further work is to be outsourced from Wattens to the site in Serbia," warns the AK.

In addition, "despite all warnings, entire network areas in the IT sector are to be outsourced to Asia." According to Zangerl, this points to a fundamental structural change.

Cost pressure and decline in the luxury segment
At the beginning of November, Swarovski site manager Jérôme Dandrieux informed the employees in Wattens that 400 more jobs would be cut! The reasons were cost pressure and the decline in the luxury segment, particularly in China. Unfortunately, 42 percent of Watten's production volume consists of crystals that other companies purchase and process into jewelry. It is precisely this sector that is currently suffering the most.

Volunteers are now being sought until December 12 to reduce their hours by 10 to 15 percent. "We feel that everyone is stressed. And behind every employee is a family," explained Dandrieux at the time.

"Wattens is our cradle, the location remains"
However, the manager reiterated: "Wattens is our cradle, the location remains!" To underpin this, it was emphasized that the investment plan (around 150 million euros by 2030) would be maintained. 

The crystal company has yet to comment on the AK's current accusations.