The “Corona” crisis: Salzburger Aluminum AG terminates 29 employees in Austria

Salzburger Aluminum AG (SAG) is terminating 29 employees in Austria at its two locations in Lend (Pinzgau) and Schwarzach (Pongau). The company has confirmed the news on 31^st July ’20. The corona crisis led to a significant decline in production at the automotive supplier.

SAG with its subsidiaries is an internationally successful manufacturer of high-quality aluminium components for the automotive, commercial vehicle and railway industries. It also produces aluminium tanks for the automotive industry.

The company said in a statement "After an optimistic start to the new year and with stable order numbers, the production volumes had to be drastically reduced in mid-March. Thanks to long-term supply contracts and short-time work, the vehicle manufacturers' lockdown had made it easy. The very hesitant restart on the part of the customer made it necessary to continue driving with the handbrake on.”

“The dismissals had been carefully coordinated with the works council and the social partners. An extension of short-time work and savings in all business areas were also necessary. From today's perspective, no further terminations are planned."

SAG has anticipated positive developments in the automotive industry in the third and fourth quarters of the year.

Karin Exner-Wöhrer, Head of the SAG Group, said: “The signs are currently pointing to consolidation in the supply industry. Of course, we hope that there will be an upturn in general, and therefore also in the automotive industry. However, since the further effects of COVID-19 cannot currently be assessed, the SAG has to prepare for various scenarios.

The dismissals may have been preceded by a conflict with the union and the Chamber of Labour.

Peter Eder, President of the Salzburg Chamber of Labour, on 31^st July’20 said: “The layoffs were initially given before Short-time Work 1 expired on 5^th July and were therefore clearly legally ineffective. Besides, the early warning system was not triggered. We started to prepare lawsuits but withdrew them. After further discussions, SAG finally announced the dismissals as of today, 31^st July.