The OGBL is reportedly the only trade union to have signed the collective labour agreement along with the staff delegation.

“The almost complete relocation of the Fuel Injection System Division and the Components Division (PTP) to other sites, notably to Blois (France), will result in the loss of almost half of the jobs in Luxembourg by the end of 2021,” it wrote in a press release.

Delphi currently employs 514 people in Bascharage, in the south of Luxembourg. According to the OGBL, it means that only the electronics and electrification operations will remain in Luxembourg.

A job maintenance plan was signed in mid-December ahead of the social plan guaranteeing measures such as early retirement and adjustment, temporary loans of labour, aid for re-employment, training and a voluntary redundancy plan.

“The number of planned redundancies has been reduced from 300 to 243, which is still a considerable number. However, this number may decrease further as a result of early retirement and internal transfers,” the OGBL said.

Under the agreement, employees who lose their jobs will be entitled to extra-legal lump-sum compensation plus an allowance linked to seniority and family situation, a budget for outplacement and/or training.

The agreement comes after it was announced at the end of January that American automotive industry supplier BorgWarner will buy Delphi Technologies for US $1.5bn (€1.36bn). The deal is expected to go through in the second half of 2020.