Tengelmann headquarters ceases operations
Author: Mario Schmidtgen
Dismissal of over 200 employees
The operating business of the trading company Tengelmann Warenhandelsgesellschaft will be discontinued at the end of 2019. A social plan has been drawn up for the roughly 250 employees at the company headquarters in Mulheim. This was approved by the works council on Wednesday.
Anyone who has not received a job offer for the new holding company can expect to be dismissed from mid-October. The dismissals will be accompanied by graduated severance payments: Each employee receives a monthly gross salary per year of seniority. This is twice as high as the legally prescribed severance payments.
Employees who are over 55 years old even receive a premium of 1.2 monthly salaries per year of employment. Employees over the age of 58 can also have their severance pay converted into monthly salaries until they retire. Parents of dependent children are also supported with 3,500 euros per child, single parents and severely handicapped with additional 3,500 euros.
Relatively new employees receive a severance payment of at least 7,500 euros. In addition, they can take advantage of professional advice and training to help them reorient their careers. In return, however, they have to forgo the compensation. Tengelmann is also establishing a job exchange where employees can apply to other Group companies and receive preferential treatment.
New smaller holding
The new holding company shall be slightly smaller than the previous one and will be run under the name “Tengelmann Twenty-One”. The associated companies Kik and Obi will in future take over some of their activities themselves. Tengelmann announced this on its own website.
According to the report, it is very important that customers do not feel any changes. The new holding company will be responsible for business development, investment management and talent development.
In 2017, the Kaiser’s Tengelmann stores were taken over by Edeka, after the major German supermarket chains had been bidding for years. The stores were subsequently converted into Edeka stores.