Unions and car maker VDL Nedcar have reached agreement on a new redundancy plan for staff following news that the workforce will be slashed by almost half in November as the company’s contract with BMW comes to an end.

The agreement, described by the three unions as the “optimal result”, will be put to union members on Thursday. It includes a commitment to increase severance pay and more official help to find new work.

The lack of a social plan had led to two wildcat and eight formal strikes at the Limburg plant. A strike planned for Monday was cancelled because of the ongoing talks.

The company, based in Born, has a workforce of 3,950 but will cut out one complete day shift towards the end of the year, reducing the number of staff to 2,100.

The job losses will affect 1,000 people on permanent contracts and some 800 staffing agency workers. More job losses next year cannot be ruled out, the company said.

The factory, the only car-making facility in the Netherlands, has a production capacity of up to 200,000 cars per year.