Type
Internal restructuring
Country
Romania
Region
Sud; Arges;
Location of affected unit(s)
Piteşti (Sud region, Argeş county)
Sector
Manufacturing
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.1 - Manufacture of motor vehicles

922 jobs
Number of planned job losses
Job loss
750 jobs
Number of planned job creations
Job creation
Announcement Date
10 August 2005
Employment effect (start)
15 August 2005
Foreseen end date
31 December 2005

Description

Carmaker Dacia in Piteşti (Sud Region, Argeş county) will lay off almost 8% of its entire workforce over the coming months. The new layoffs came in addition to what was established in the restructuring programme that followed the company's privatisation, a move that has cut the number of employees from 27,500 in 1999 to less than 12,000 currently.

The redundancy programme was discussed with the plant's trade union. ‘There are 922 positions from departments that are going to be closed or have their activities reduced. For instance, the foundry and the forge will have their number of positions reduced, while other areas will be completely shut down', explained the trade union leader of Dacia. ‘This is a multinational strategy and these positions are no longer included in Dacia's new projects'.

Dacia has requested the help of Arges employment agency to conduct the redundancy process. The representatives of Arges county employment office confirmed they have received notification for redundancy procedures, which will start on 15 August 2005. Redundant employees will benefit of mediation and training services in order to find a new job.

The Dacia trade union leaders also stated that part of the people made redundant would have the chance to continue working in the plant, but in new departments that are to be created. One such department is the gearbox factory, in which Renault recently announced it will invest €215 million and is likely to absorb 650-750 employees.

Horizontal development may also lure Renault suppliers, which could in turn generate new jobs.

Dacia is expected to produce nearly 200,000 cars this year, which will allow it to turn a profit for the first time with turnover in excess of €one billion .


Sources

  • 10 August 2005: Curentul
  • 11 August 2005: Ziarul Financiar
  • 10 August 2005: Ziarul Financiar
  • 11 August 2005: Economistul
  • : (www.curentul.ro)

Citation

Eurofound (2005), Dacia, Internal restructuring in Romania, factsheet number 62202, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62202.