News Corona crisis
Small bright spots for French fries producer Aviko
There are small glimmers of hope for emergency support for Aviko, partly as a result of the House of Representatives debate held yesterday (Tuesday). On Thursday it will become clear whether the French fries producer may still be able to use the Emergency Bridging Measure for Employment (NOW).
The temporary NOW scheme, which has replaced the short-time working scheme, will help employers who are dealing with loss of turnover due to the corona crisis. The wages of the employees are continued for 90%. Because only parent companies can now claim this scheme, Aviko, as an operating company of Royal Cosun, is excluded. The company wrote a burn letter to Wouter Koolmees, Minister of Social Affairs and Employment.
On Tuesday 14 April, the House of Representatives discussed the relaxation of the NOW scheme. In the debate, Chris Stoffer of the SGP raised the pressing situation with Aviko. He pointed out that Aviko personnel cannot work in other parts of Royal Cosun. The minister undertook to examine whether operating companies such as Aviko could still receive a wage cost subsidy.
Not empty handed
“That's the best outcome we could have hoped for,” said Chris Deen, CEO of Aviko. “We did not expect a final verdict. In any case, we are not completely empty-handed with this promise.”
Aviko has now received an assurance that Minister Koolmees will make a statement in principle tomorrow (Thursday, April 16) about whether or not to relax the NOW scheme. This is followed by the substantive elaboration of any exception regulation.
Meanwhile, the CEO continues to call on the government to help Aviko now that the company's turnover is growing dropped by 70% as a result of the corona crisis. “We had to cut back considerably in production. With the closure of the catering industry, activities in the fresh products came to a standstill almost immediately. Incidentally, we are seeing demand pick up again, thanks to fun catering initiatives with takeout and delivery.”
Capacity remains
According to Deen, Aviko's 1.100 employees in the Netherlands are not (yet) out of work. “Office workers work from home and the factories continue to work as long as there is work. Shifts are shifting and we try to be as flexible as possible to respond quickly to whatever little demand there is. In the meantime, we are busy looking at different scenarios.”
Deen is clear about the capacity: it will remain. “The long-term prospects are just good. This means, among other things, that the construction of the new factory in Poperinge will continue, as will the takeover of the French fries factory in China.”
Jeanette Pennings
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