CCEP announced today to the works council and the entire workforce the intention of changing its business model regarding the delivery of goods and the distribution of Chaqwa Coffee.

Stating that over the last years there has been a constant decline of directive deliveries of goods and that wholesalers and other customers would prefer other solutions, CCEP announced its intention to close the logistics centres in Heppignies and Hasselt, which will be replaced by so-called cross docks run by external providers.

Furthermore the introduction of new vending machines / coolers and new technologies will bring about the need for a new organisational model, in which hot and cold drinks will be delivered jointly. To this end a new company for Hot and Cold Full Service Vending will be set up.

The announced consequence of these decisions is that the Company intends to open a collective redundancy procedure in Belgium regarding 132 employees, of which 34 “white collars” and 98 “blue collars”.

As part of organisational needs, the company claims that there is an opportunity to mitigate these redundancies by transferring 123 to other positions within CCEP.

In Luxembourg, 6 employees are affected. The Company said all 6 can be successfully redeployed internally.

The new model is scheduled to be operational in 2020, with the following schedule:

– the new operating company which will provide full service vending for hot and cold drinks shall be operational on 1 January 2020;

– the Antwerp warehouse shall be optimised during Q1 2020;

– the new crossdock in Heppignies shall be operational in Q2 2020;

– the distribution center in Heppignies shall be closed in Q3 2020;

– the new crossdock in Hasselt shall open in Q3 2020;

– the Hasselt distribution center shall be subsequently closed in Q4 2020.

The legal consultation procedure will now be implemented and, if redundancies will be unavoidable, negotiations for a social plan shall follow.

TCCC announced the outsourcing of certain parts of its Financial Services. In Europe, the regional finance centres in Warsaw (Poland) and Drogheda (Ireland) would be impacted. It is unclear how many positions would be impacted, as the company made a very generic statement. An estimate indicates about 50 – 60 positions in Warsaw and up to 200 in Drogheda.

CCHBC Italy announced the restructuring of its commercial organisation. 137 positions are to be eliminated

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