The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Material For Textiles, Apparel, Leather And Related Products Manufacture Of Textiles 13.9 - Manufacture of other textiles
New offshoring locations
Bosnia and Herzegovina, Morocco, Moldova
1,000 jobs Number of planned job losses
Announcement Date
7 December 2005
Employment effect (start)
1 April 2006
Foreseen end date
31 December 2008
Description
Mr. Hastor, a major owner of Prevent Global, revealed to a Bosnian magazine his intention to move part of the production of automobile seat covers to Bosnia and Herzegovina, Morocco and Moldova for cost efficiency reasons. The main product of Prevent are covers for car seats. This is a simple low-skilled production. Due to high labour costs in Slovenia, Prevent will move most of the mass scale production abroad, to Russia, Morocco and Bosnia. In Slovenia, only a more sophisticated, “boutique” type of production will be retained. By April 1, 2006 189 workers in the factory in Slovenj Gradec will be dismissed, by the end of 2006 another 160 workers will loose jobs in factories in Mežica, Radlje ob Dravi and Mirna, and then another 15%-20% of the total labour force by 2008, altogether up to 1000. These factories are concentrated in the northeastern part of Slovenia (Koroška, and Podravska region). The management believes that, in order to safeguard two thirds of the existing jobs of Prevent in Slovenia, simpler production should be relocated to low labour cost countries. Most of the workers dismissed in 2006 will be women. On average, every dismissed worker will receive approximately EUR 2200 of compensation. The downsizing process has been prepared in consultation with the trade unions. Trade unions have been aware that they cannot prevent dismissals and the negotiations focused on the terms of dismissal.
Eurofound (2005), Prevent Global, Offshoring/Delocalisation in Slovenia, factsheet number 62599, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62599.
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