European Restructuring Monitor:

Fact Sheet Details

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Company: Siemens Kolejová vozidla

Geographic location

- Country:

Czech Republic

- Region:

Czech Republic ; Praha

- Affected unit(s):

Prague

Company

- Group :

Siemens Transportation Systems

- Sector :

Manufacturing : Manufacture of railway and tramway locomotives and rolling stock (Nace DN)

- Number employed:

1000

Employment effects

- Announcement Date:

24-07-2008

- Planned job reductions:

1000

- Type of restructuring:

Bankruptcy/Closure

- Employment effect start:

24-07-2008

- Employment effect timeline:

01-09-2009

- Direct dismissals:

- Other job reduction measures:

- Planned job creation:

Additional information

Siemens Kolejová vozidla, the leading manufacturer of rail vehicles in the Czech Republic and a subsidiary of Siemens Transportation Systems, has announced the closure of its site in Prague with over 1,000 jobs threatened. Siemens plans to sell the plant by September 2009. Trade unions entered into strike readiness in order to save jobs. The company´s decision is due to low Czech customer´s demand resulting in financial loss of CZK 400 million in 2007 and is also connected with global changes and the company's global strategy which envisages17,000 redundancies. On 26 August 2008 trade unions negotiated higher severance pay amounting to 16 monthly wages (previously the company offered 8 – 12 wages) in case of the closure of the plant. The company also promised generous bonuses in case of ownership's change.

For more information, see EIRO report.

Sources

Hospodářske Noviny, 24-07-2008

Hospodářske Noviny, 26-08-2008

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Page last updated: 17 July, 2009

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