Group layoffs

Three companies announced group layoffs dismissing altogether more than 3000 workers in the last couple of days as the effect of decrease in demand due to the financial crisis.


Hungarian Suzuki Zrt dismisses 1200 worker and narrows the production to two shifts from December 8 while VT Car-electronics Kft lays off 400. The Taiwanese Foxconn producing computer parts will send away 1000 employees from its Komárom factory and 500 from its Debrecen manufactory.
These measures had to be taken because of the dramatic drop in the volume of orders; the dismissals also include office staff, Viktória Ruska spokesperson of Magyar Suzuki said.
In its press release VT Kft said the dismissal is only partly due to the crisis, as a large project also finishes in the end of the year. However, the long- and mid-term expectations are positive as VT Kft has several significant long term orders.
For now Foxconn will be able to keep less than half of workers currently employed depending on the market and the demand, said Péter Tálos, spokesperson of Foxconn.
Hungarian Suzuki toned down the production for 2008 from the previous 300 thousand to 282 thousand and for 2009 estimates the construction of only 210 thousand vehicles.
The marketing troubles are eased by their exporting the popular Splash model launched in February, with the steering wheel on the right side to Japan as it is produced nowhere else, Ruska added.
The Japanese Suzuki Motor Corporation founded Magyar Suzuki in 1991 as major shareholders. By now it has produced more 1.5 million cars. The company invested Ft280 billion in the Esztergom factory since 1991.
VT, subsidiary to Videoton Holding Zrt, currently employing 1300 workers producing Ft20 billion annual profit is the largest Hungarian-owned car-electronic company. VT has been producing electronic cards, electromechanical fittings and complete control panels and modules since 1994.
Erika Szûcs, Social and Employment Minister said that the department allocates Ft80 billion besides the resources of the New Hungary Development Fund to help in preserving workplaces and in decreasing the number of layoffs.

The BpSun Staff

03.12.2008