AvtoVAZ Mulls Over 5,000 Layoff
Russian car maker AvtoVAZ has announced redundancy at the factory, planning to lay off more than 5,000 people, or 5 percent of the workers. 75 million rubles that AvtoVAZ hopes to save on the cut will be used to raise wages by 5 percent.
Kommersant got hold of copy of a letter from AvtoVAZ Vice-President Alexander Golovaty to the group’s President Vladimir Artyakov, suggesting making 5,268 people redundant before October 1. The total number of employees at the factory is to be cut by 4.8 percent.
The redundancy move will be saving AvtoVAZ up to 75 million rubles every month, according to Alexander Golovaty. The money could be used to raise wages by 5 percent in the second half of the year to comply with a collective agreement between the plant’s management and trade union. Asking to consider the proposal, Mr. Golovaty notes in the letter that the management is now going to lay off 1,841 people, which will help to raise wages by as little as 2 percent.AvtoVAZ confirmed reports about the redundancies, but declined to give the exact number of future layoffs.
In the meantime, trade unions don’t sound disturbed by the news. “People are lining up to the plant’s HR to leave AvtoVAZ” because of low wages, a trade union leader told Kommersant.Industry experts say that redundancy is an unpopular but efficient move. With 100,000 workers in workshops AvtoVAZ now produces some 730,000 cars a year while 130,000 people at Renault plants manufacture 2.5 million cars.
www.kommersant.com
Kommersant got hold of copy of a letter from AvtoVAZ Vice-President Alexander Golovaty to the group’s President Vladimir Artyakov, suggesting making 5,268 people redundant before October 1. The total number of employees at the factory is to be cut by 4.8 percent.
The redundancy move will be saving AvtoVAZ up to 75 million rubles every month, according to Alexander Golovaty. The money could be used to raise wages by 5 percent in the second half of the year to comply with a collective agreement between the plant’s management and trade union. Asking to consider the proposal, Mr. Golovaty notes in the letter that the management is now going to lay off 1,841 people, which will help to raise wages by as little as 2 percent.AvtoVAZ confirmed reports about the redundancies, but declined to give the exact number of future layoffs.
In the meantime, trade unions don’t sound disturbed by the news. “People are lining up to the plant’s HR to leave AvtoVAZ” because of low wages, a trade union leader told Kommersant.Industry experts say that redundancy is an unpopular but efficient move. With 100,000 workers in workshops AvtoVAZ now produces some 730,000 cars a year while 130,000 people at Renault plants manufacture 2.5 million cars.
www.kommersant.com
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