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Lower Austrian formwork technology company Doka has decided to cut jobs in light of persistently weak international demand as a result of the coronavirus pandemic, the company’s management announced in writing late Wednesday.
The “headquarters” in Amstetten and the production, where around 2,000 people work, are affected, but not the sales organization with several hundred employees. The company will not extend part-time work for a further period after the end of the current phase in late September. According to the company, the workforce was briefed on the drastic savings plans Wednesday afternoon.
Reduction of personnel due to the fall of international markets
According to the information, the reduction should not only occur through layoffs, but also through natural exits, emphasized Evi Roseneder, a spokesperson for the company. With the austerity program, Doka is responding to “significantly reduced demand, especially from the Middle East, Asia and Latin America.” Little is likely to change in this regard in the near future.
For the current year, but also for the next year 2021, “a significantly reduced need for formwork” is emerging. This February, before the crown crisis, Doka was still on a growth path. The closure of the coronavirus and its consequences have “turned this growth negative.” This recession could have been accepted for a year. However, it is now becoming clear that the markets of the Middle East, Asia and Latin America in particular are affected by the crown crisis to a greater extent and, above all, in a more sustainable way, that is, “far beyond 2020 ”than previously assumed.
In almost every country in Latin America, large construction sites have been closed for months. The situation is similar in metropolises such as Singapore and countries like Malaysia or India, where the peak of the crown is still imminent despite a rigorous closure.
Short-term work suitable as a “bridge instrument”
“We now know that we will not reach the sales level in 2019 for a longer period of time,” said Doka boss Harald Ziebula. “Short-term work is a bridge instrument. The horizon we see is too far away to continue ”. Therefore, short-term work at the Amstetten location will finish at the end of September. According to Zieluba, it is not “reasonable to continue using this instrument (reduced hours; note) in relation to the public sector”, nor to employees, for whom this time is associated with a loss of income over a longer period of time.
In the course of the fall there will be restructuring measures in many areas of the company, including through staff reductions. The number of employees will “adjust” in the coming months due to natural leave that has not been covered, early retirements, voluntary resignations and layoffs. The framework conditions are already being negotiated with the works councils. In addition to the location measures, corresponding restructuring is also taking place in the affected regions and countries.
“Bad news for the regional business location”
The planned job cuts are “very bad news for the regional business location and affected employees,” said Jochen Danninger, regional minister for Economic Affairs and Martin Eichtinger (both ÖVP), responsible for the labor market, on Wednesday evening. “The region is currently looking for many skilled workers and Doka attaches great importance to well-trained workers, so we are cautiously optimistic that some of the affected employees will find a job in the area again in the near future.”
However, it is now important to quickly help those affected. The state councils called on the company management and the works council to conclude a social plan as soon as possible. Management has already been contacted.
Doka operates internationally in 70 countries with around 7,000 employees around the world. The company has been producing and marketing formwork components and systems for more than 60 years. Together with umdasch The Store Makers and Umdasch Group Ventures, Doka is part of the Amstetten Umdasch Group-based shop formwork and assembly technology group.
