The CNV union said on Tuesday it has reached agreement with the management of department store group V&D on a social plan for redundant workers.

V&D is looking for redundancies in an effort lower its wages bill. It was saved from bankruptcy in February when it made an agreement with the owners of most of its 63 properties to temporarily reduce the rent. It is now in talks with its landlords on a long-term solution.

The social plan, which has been positively received by other involved unions, consists of an acceptable redundancy payment, a budget of €3,500 for each person involved for retraining and help in finding other work, and €500 for legal assistance, the CNV said.

Headquarters

It initially applies to the 50 workers due who are losing their jobs at headquarters, but will apply to redundancies caused by future reorganisations, according to the union.

This social plan continues until July 1 when the government is introducing new laws on redundancy. However, the CNV said it shows the direction for a new social plan for after that date.

Court case

In February, V&D scrapped plans to cut staff wages by 5.8% following a court case brought by the unions. It is appealing against the ruling but said it wanted to remain in negotiations with the unions. Those discussions are now deadlocked.

The company made a loss in both 2012 and 2013 and in February announced that in 2014 it lost a further €49m.