EMCC European Monitoring Centre on Change

Ajka Crystal

Company/Organisation:
Ajka Crystal

Geographic Location

Country: Hungary
Region: Veszprem; Kozep-Dunantul; Dunantul
Location of affected unit(s): Ajka

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
23 - Manufacture of other non-metallic mineral products
Number Employed: 366
Group: FOTEX Rt

Employment Effects

Announcement Date: 07-01-2009
Planned Job Reductions min: 250
Planned Job Reductions max: 250
Type of Restructuring: Internal restructuring
Employment Effect Start: 23-03-2009
Foreseen End Date: 23-03-2009
Direct Dismissals: 250

Additional Information

On 6 January, Ajka Crystal announced a mass redundancy measure affecting two thirds of its workforce. Among those made redundant 220 are blue collar workers and 30 are administrative staff totalling 250 of the current 366 workers. The company attributed its decision to the economic crisis in the USA, the major market for the company, from where 20-25% of all orders were cancelled in last November. The company initially tried to counterbalance falling demands by putting workers on statutory holidays; however, in the end, after a failed attempt to obtain government funds for rescuing jobs (the company's application was ruled out for a previous minor overtime related Labour Code infringement) substantial layoffs were initiated.
The company, established in 1878, produces hand made artistic glasses bottles and crystal bowls and painted china. The company was nationalised in 1948 with 409 employees and privatized by its present owner, FOTEX Rt., in 1990.