Moscow: Russia's largest car maker, AvtoVAZ,
plans to lay off 36,000 employees including 5,000 white-collar
staff by December 1, following dipping auto sales and mounting
losses.
The company, known for its Lada brand cars, recorded a
loss of USD 447 million between January-June 2009 against a
net profit of USD 47 million during the same period last year.
AvtoVAZ, based in Togliatti in the Volga region, would
lay off one third of the plant's 110,000-strong workforce,
sources in the Health and Social Development Ministry said.
The job cuts would be gradual, and those rendered jobless
would receive unemployment benefits from the state including
early retirement, state-run Vesti FM radio reported.
The car plant is the largest local employer. The leader
of "Yedinstvo" (Unity) Trade Union of AvtoVAZ plant Pyotr
Zolotaryov has accused the management of violating labour laws
saying the staff has not been informed of cuts.
Although topping the sales among other car manufacturers
in the domestic market, AvtoVAZ sales have dropped by 45
percent in the first half of the year and had closed main
assembly line for a month in August.
AvtoVAZ, set up in late sixties in collaboration with
Italy's FIAT has made 25 million Lada cars since 1970. It has
production capacity of over 800,000 vehicles annually.
Bureau Report
First Published: Friday, September 11, 2009, 18:42