Panzani subsidiary Lustucru Rice has reportedly been ordered to pay more than EUR2m (US$3m) in compensation to former employees at its former rice packing site in Arles who have yet to find secure work.
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When the Rhone flooded in December 2003, submerging the factory, all 146 staff were left out of work.
By the following February, it is claimed, the owners had decided not to refurbish the site but close it down, collecting a EUR15m insurance payout.
This week, the Arles employment tribunal did not accept company’s case for the closure, saying it was not based on: “…any real and serious cause”.
Lustucru Rice president Michel Peudevin reportedly found the judgement “…incomprehensible, not to say unacceptable”.
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By GlobalDataThe company claims it has already paid EUR12m as part of a plan to protect jobs. It also ‘sold’ the site to the local town hall for EUR1m, for redevelopment, and has contributed EUR3.8m to developing employment in Arles.
Officials at Lustucru Rice were unable to comment when contacted by just-food.
