After conducting a thorough analysis of the company’s economic and operational situation, a restructuring of the workforce is deemed necessary due to the significant and prolonged decline in orders in the automotive sector, which has impacted its operations in recent years, the company based in Joane, Vila Nova de Famalicão (district of Braga) stated in a release.
In May, Coindu proceeded with the collective dismissal of 123 workers and placed an additional 237 in ‘lay-off’, and by the end of 2024, it closed the factory in Arcos de Valdevez, leaving 350 workers unemployed.
The company, which currently employs 1,050 workers, emphasized it made “every effort to avoid this measure,” but this layoff will allow it to “align its production capacity with the existing order book, ensuring the reliability of supply for all current contracts.”
This adjustment in production capacity, it stressed, is “necessary” to “ensure the company’s long-term viability” in a context of great uncertainty and a European automotive sector facing a very complex phase.
Coindu also highlighted that the collective dismissal “is the legally appropriate solution to ensure a transparent process in accordance with the law, protecting the rights of the affected employees.”
In 2022, between Arcos de Valdevez and Vila Nova de Famalicão, Coindu employed 2,100 workers.
In May, Francisco Vieira from the Textile Union of Minho and Trás-os-Montes stated the company aims to have between 800 and 825 workers available this year, with those numbers projected to increase to 950 to 1,050 workers by 2026.
