Dr. Oetker Professional concludes negotiations on reconciliation of interests and social plan for the Ettlingen site

Closure of the areas of production, work preparation, technology and warehouse is unavoidable

23-May-2022 - Germany

As announced in January this year, Dr. Oetker Professional will close production at the Ettlingen site at the end of the year and will concentrate on the strategic product lines: pizza, cake and dessert. This was the result of negotiations on a reconciliation of interests with the works council. With the help of a comprehensive social plan, the approximately 150 jobs affected are to be reduced in a socially acceptable way.

The restructuring measures in Ettlingen became necessary after changing customer expectations in the out-of-home market. Demand in the out-of-home market for dry, spicy products has been declining for years. The Corona pandemic has exacerbated this development. The declining utilisation of production at the Ettlingen site has led to significant losses since 2016. In contrast, the markets for pizza, cake and dessert – Dr. Oetker's strategic assortments – are showing positive developments in the out-of-home business. Accordingly, Dr. Oetker Professional division will focus on sales of these lines in the future.

The social plan negotiated with the works council includes, among others, offers for the voluntary termination of employment contracts and dismissals with severance pay. There are also options for voluntary internal transfers to other Dr. Oetker locations. In coordination with regional associations and companies in the food industry in the Karlsruhe area, employees are also supported in their search for new jobs. The commercial trainees are not affected by the measures and can continue their education at Dr. Oetker Professional. The trainee in the industrial sector will be closely supported in finding a suitable education place in the region or will be offered the opportunity to continue the education at another Dr. Oetker location.

68 employees will remain at the Ettlingen site in sales, marketing and administration. This means that ten more jobs than assumed in January 2022 have been secured. In the future, Dr. Oetker Professional will focus on profitable growth in the strategic assortments "Pizza, Cake and Dessert". Production is expected to be discontinued by the end of 2022.

Axel Zinke, member of the Management Board of Dr. Oetker Germany, said: "We would like to thank the works council for the negotiations, which were very tough but constructive. It is still a very painful path, but we are securing the future of the site and supporting the employees who are leaving us with the social plan."

https://www.yumda.com/en/news/1176184/dr-oetker-professional-concludes-negotiations-on-reconciliation-of-interests-and-social-plan-for-the-ettlingen-site.html