BAT cigarette factory closure to have ‘painful consequences’ for Jura region

BAT's factory in Boncourt, canton Jura, has produced ‘Parisienne’ cigarettes since 1887, which is the second best-selling brand in Switzerland. © Keystone / Georgios Kefalas

British American Tobacco (BAT) will close a cigarette manufacturing factory in north-western Switzerland next year and lay off the 220 employees working there, it has been confirmed. This decision will have a major impact on the region, the Jura government said on Wednesday.

“Let’s be clear – this is a hard blow, but we will overcome it and the situation is not hopeless,” declared Jura government president David Eray.

However, he added: “This decision brings us face to face with the painful consequences that we feared.”

Proposals by staff and unions to save all or part of the Jura site have been rejected by the BAT management and the Boncourt factory will close next year, union representatives said on Wednesday.

The tobacco giant had announced its intention to close the Swiss cigarette factory on October 27 but under Swiss law it was obliged to open a consultation period with staff representatives and unions to find solutions.

In a statementExternal link, BAT confirmed that cigarette production would be transferred from Boncourt to bigger factories in Europe and that Boncourt would be closed. It added that following the intensive consultation period, an agreement had been reached to give employees an “advantageous social package”.

Commune’s biggest taxpayer

“The dismissals will be pronounced, in several waves, during the course of next year,” said Yves Defferrard from the Unia union, confirming informationExternal link by Swiss public radio, RTS. The unions noted that “considerable” improvements had been obtained, “even if a group like BAT could have given more”.

According to the Keystone-SDA news agency, the social plan contains guarantees of allowances and seniority, and includes offers of early retirement. It also takes family situations into account and offers help with the search for a new job.

Following the closure of the factory, the commune of Boncourt (1,200 residents) will lose its biggest taxpayer – around CHF1.5-2 million ($1.6-2.15 million) in annual tax – from its yearly budget of CHF8-9 million.

Boncourt mayor Lionel Maître described BAT’s decision as “a shock, a disappointment, a feeling of desperation and a mess”.

The Boncourt factory was founded by the Burrus family in 1814 and was taken over by Rothmans International in 1996, before merging with tobacco multinational BAT three years later. The site has produced Parisienne cigarettes since 1887, the second best-selling brand in Switzerland.

In 2014, BAT’s closed down a research and development facility in Boncourt with the loss of around 15 jobs.

Switzerland is home to some of the leading tobacco companies, including BAT, Japan Tobacco International and Philip Morris. But the industry’s workforce has been in decline in the Alpine state as other companies downsized staff in previous years.