Decline in market demandFB Group Luxembourg lays off quarter of its workforce

RTL Today
FB Luxembourg SA in Esch-Schifflange has announced the redundancy of 21 employees, with its director declaring that "the pavilion market in France is dead." The decision comes as the company awaits the completion of its new plant in Luxembourg.
© Domingos Oliveira / RTL

Gérard Denayer, director of the production site specialising in reinforced concrete slabs for housing and industry, situated in the Um Monkeler industrial zone, highlights the cessation of reinforced concrete slab production due to dwindling demand in the pavilion sector in France: “We have to stop producing reinforced concrete slabs because there is no longer any demand. The pavilion market in France is dead.” Nearly 80 people work at the site situated at the junction of the A4 and A13 motorways between Esch-sur-Alzette and Schifflange.

The Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Neutral Trade Union (NGL-Snep) confirmed on Friday morning that negotiations for a redundancy plan were conducted in good faith between the staff delegation and FB Group management. 21 positions will be affected by the collective redundancies.

Out of the impacted employees, ten will face job displacement, while five will qualify for early retirement and six will transition to employment with another Luxembourg-based company within the Belgian Willy Naessens Group, the parent company of FB Group.

© Domingos Oliveira / RTL

Affected employees who choose to join the Willy Naessens Group will receive incentives and guarantees consistent with their current contracts. Additionally, the trade unions have secured extra-legal compensation for those who will be laid off. They will also receive priority consideration for re-employment opportunities within the company and “will be the first to be notified of any job vacancies within the Willy Naessens Group in Luxembourg.”

A bright future ahead, but in the meantime...

Despite grappling with the current economic downturn in the French housing construction sector, FB Group Luxembourg remains optimistic about its future prospects. Gérard Denayer views the redundancy plan as a strategic response to transition from reinforced concrete production to prestressed concrete. While demand for reinforced concrete slabs has waned, there is a continued need for prestressed concrete slabs in the industrial sector. Denayer underscores the company’s plans to construct a new plant at its Esch-Schifflange site, driven by the broader applicability of prestressed concrete in various industrial applications. This shift reflects the distinct requirements of the industrial sector compared to traditional house and building construction.

However, in the interim, the company must navigate the current economic landscape. Denayer acknowledges that establishing the new plant may take time, estimating a potential timeline of a year and a half to two years before operations start. The process of obtaining necessary authorisations is currently underway.

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