"Auto manufacturer Magyar Suzuki Zrt is laying off 1,179 staff due to a dramatic sales slump, news portal Index reported. According to the news site, layoffs have already begun with recent hires, and the plant will be shut down from December 20 to January 5. The management is scheduled to release the boardroom news this afternoon.The Suzuki factory in Esztergom made 320 new hires redundant on November 25, with plans for another 1,140 employees to be laid off in January, Index learned.
Financial crisis, dramatic plunge in orders
Suzuki trade union founder Zsolt Párma said the workers have not yet been officially informed of major downsizing plans. No trade union or other civil organization is however able to control Suzuki's plans concerning workers borrowed from temporary employment agencies or still on their trial periods.
Index has gained access to a document drafted by the board directors and sent to the Plant Council outlining plans to reduce the workforce from the current 5,523 by 1,179. It is not clear whether the layoffs include temporary workers. The reason for the move is a major financial crisis at Suzuki, which has seen a dramatic decline in orders.
In line with reducing the employee headcount, the management has approved plans to crop shifts and downtime around Christmas and New Year.
According to local sources, the company has long been considering plans to reduce workers commuting from Slovakia, partly due to the fact that Slovakia is joining the euro zone in January.
Layoffs rampant in Hungary's auto industry
Parallel with layoffs in Esztergom, several other auto industry players and suppliers are slashing headcount in Hungary. Among these is automotive supplier Videoton Autoelektronika, which has allegedly approved plans to lay off 250 staff and move production partly outside of Hungary.
Nyíregyháza-based Vibracoustic has laid off 60 employees, according to Index."
Source: Portfolio Online Financial Journal
01.12.2008