End for East German work – So high are the severance payments

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After Haribo closed the only East German plant, the employees apparently get high severance payments – up to 130,000 euros. But not all employees can count on it.

When a company closes a plant, the employees are often left without work. This is also the case with the gummy bear company Haribo, who announced the final closure of the production facility of the only East German plant at the beginning of the week. “That is a slap in the face of the employees and very bitter for the region,” said Thomas Lißner from the food-pleasure-restaurants union.

A total of 119 employees are affected by the closure of the Haribo plant in Wilkau-Haßlau near Zwickau, of which, however, according to the company, almost 80 have already found a new job or have retired. A social plan takes effect for the employees, some of the employees receive high severance payments. This is what the business portal “Business Insider” reports.

That’s how high the severance payments at Haribo are

On average, the employees received payments between 35,000 and 50,000 euros. This is dependent on the length of service.

For example, an employee who has been with the company for 22 years also receives a payment of 130,000 euros from Haribo, according to the report, citing people familiar with the matter.


Haribo confirmed to the “Business Insider” that the severance payment depends on the length of service and that the average annual salary is one and a half years. In addition, there are surcharges for families. “From our point of view, the social plan has turned out to be much more generous than usual in the industry,” the portal quotes a spokesman for the gold bear manufacturer.

Report: Not all employees receive high severance payments

However, not all employees get such lavish payments on their account. There are also employees who only received around 2,000 euros, it said. In addition, there are special regulations for employees who leave the group earlier than planned, as Haribo “Business Insider” confirmed.

Actually, a buyer should take over the work, such as the competitor Katjes. The company was seriously interested in the location, said Saxony’s Minister of Economic Affairs, Martin Dulig (SPD), who is also his party’s Eastern Commissioner. “There was justified hope that production could continue.”

A Katjes spokeswoman confirmed to the dpa news agency at the beginning of the week that there had been a viewing appointment. However, it turned out that the structural substance was insufficient to continue the production of fruit gums there.

SPD politician: “That is irresponsible”

Unfortunately, it shows again that for years the East was apparently only the “extended and inexpensive workbench of western companies”, according to SPD politician Dulig. In the event of the slightest economic headwind, the sails would be canceled here, “regardless of losses”. “That is irresponsible,” said Dulig.

The gold bear manufacturer shut down production in Saxony at the end of 2020. The closure was justified with high investments that are necessary at the location.





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https://www.t-online.de/finanzen/news/unternehmen-verbraucher/id_89599582/haribo-aus-fuer-ostdeutsches-werk-so-hoch-sind-die-abfindungen.html

East German work high severance payments

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