Ardo presents first social plan proposal as plant closure looms

Ardo has submitted its first proposal for a social plan to the works council as the frozen vegetable factory in Groß-Enzersdorf faces closure, ORF reported Thursday.

The company expects most employees to continue working for another six to nine months, with some staying for up to a year. The next round of talks with the works council is scheduled for October 23.

Ardo said the closure was unavoidable for economic reasons and that the factory had become structurally unprofitable. It also rejected claims that it had received state aid that would now have to be repaid. The company said potential repayment claims by the EU could apply only to funding received by the Frozen Vegetable Producers’ Association, in which Ardo has a stake.

An online petition calling for the preservation of Marchfeld frozen vegetable production had gathered about 40,000 signatures by Thursday. It calls on the federal government to create incentives, including a possible tax advantage or subsidy for an Austrian company that might build a new processing factory. It also proposes financial support for farmers who could process their vegetables through a cooperative.

Economists at the Institute for Advanced Studies and the Austrian Institute of Economic Research have opposed subsidies to keep frozen vegetable production in Austria, arguing instead for action on location-related issues such as electricity prices.

Agrana chief executive Stephan Büttner has suggested the former sugar factory site in Leopoldsdorf in the Marchfeld as a possible location for new frozen vegetable production.