Photo of the entrance to Delphi Luxembourg in Bascharage
Photo: Maison Moderne archives
Around 42 jobs are expected to be axed at Delphi after the firm signed a social plan with the union OGBL.
The layoffs, which are prompted by a reorganisation of the firm’s global corporate structure, are expected to have a minimal impact on the Luxembourg operations, however.
According to Luxembourg union OGBL, the restructure means the Powertrain Systems operations will become an independent company, known as Delphi Technologies, and all other functions will operate under the Aptiv company, which will leave Luxembourg and be mainly based in Dublin, Ireland.
“Concretely, this means that the Delphi Automotive Systems Luxembourg (DASL) employees will all be part of Delphi Technologies and will not be affected by the social plan,” the OGBL said in a statement released on Thursday, adding: “On the other hand, concerning the employees of Delphi International Operations Luxembourg (DIOL), either they will be transferred to the company which remains in the Grand-Duchy, or they will leave abroad, or their employment will be suppressed and they will be dismissed.”
According to OGBL, some employees have had a job offer in Dublin which they can accept or refuse. In case of refusal, they will be covered by a social plan signed by Delphi and the OGBL on 24 October.
The plan includes social and financial measures for dismissed staff, such as a basic extra-legal allowance supplemented based on seniority and family status, a training budget and moving assistance.
“Similarly, the possibility of additional transfers to Delphi Technologies continues to be studied. To this end, a voluntary departure plan has also been put in place,” the union said.
The OGBL said it could not understand the decision to relocate the activities of Aptiv to Ireland, saying that the employees will pay the price of the decision.
It is reportedly the firm’s fourth social plan in fewer than ten years, leading the OGBL to question Delphi’s long-term commitments to Luxembourg.