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Lagerhaus TechnikCenter in crisis: salary cuts are causing an uproar!
Employees at the Lagerhaus TechnikCenter protest against salary cuts; Reorganization in response to market crisis.
Lagerhaus TechnikCenter in crisis: salary cuts are causing an uproar!
Things are simmering in the Austrian agricultural machinery market: the “Lagerhaus TechnikCenter” (LTC) is under pressure and is faced with drastic measures. How Today reported, employees have to forego salaries of between 1,300 euros and up to 30 percent. A few days ago, the employees received new, non-negotiable service contracts, which were presented under the motto “Eat or die”. The sales team is hit particularly hard, as it is faced with new commission agreements that are difficult to maintain in a market that has been declining for years.
In addition to these cuts, the workforce is shocked by the fact that even the board of Raiffeisen Ware Austria AG (RWA), which owns 98 percent of LTC, is not prepared to offer support. The situation is so tense that no employee is willing to sign the new service contracts. According to the RWA, the reorganization is the only way to secure over 130 jobs, as demand in the agricultural machinery market has fallen sharply and costs must therefore be reduced. A corresponding one Service law sets out the principles of such contractual relationships and describes the obligations of both parties.
Draconian measures to reduce costs
The RWA has introduced cost reduction measures, including reducing inventory and reducing material costs. It was made clear to employees that 25 people had been registered with the AMS, which could result in job losses. The company sees the adjustment of the salary structure and commission regulations as a necessary response to the current market situation. Such changes will occur in... Service contract which regulates between the parties the provision of a specific service in return for remuneration. In the case of an employment contract, more specific regulations apply that concern protection against dismissal and other aspects. The RWA reiterates that the measures are harsh and difficult to understand, but were taken in the interest of the company's existence and the remaining jobs.