EMCC European Monitoring Centre on Change

ContiTech Fluid Automotive Hungária

Company/Organisation:
ContiTech Fluid Automotive Hungária

Geographic Location

Country: Hungary
Location of affected unit(s): Makó and Vác

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
22.11 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres
Number Employed: 2623
Group: Continental AG

Employment Effects

Announcement Date: 22-04-2020
Planned Job Reductions min: 200
Planned Job Reductions max: 700
Type of Restructuring: Internal restructuring
Employment Effect Start: 22-04-2020

Additional Information

ContiTech Fluid Automotive, a subsidiary of the Hungarian ConiTech and a division of German automotive parts manufacturer Continental, will lay off between 200 and 700 employees who work at its Makó and Vác plants, according to the Federation of Chemical Workers of Hungary. The engaged trade union reports that the exact number mainly depends on whether the union accepts the management’s offer of reduced working hours and wages. If the union accepts the introduction of a four-day working week and wage reduction of at least 20%, then the number of job cuts will be around 200. Otherwise, the number of redundancies may reach 700.

The trade union is willing to accept the shorter working week and the pay cuts, but it also wants a guarantee that those employees, who sign this offer will not be laid off; without it, the offer will be unacceptable.

The anticipated dismissals will affect mostly agency workers, however, the shortened work schedule shall be introduced from 1 May 2020 and will impact both units of the company. In addition, it is expected that the company will make use of the new government-subsidised scheme of shorter working hours.

The Makó and Vác production sites stopped operation on 23 March 2020, due to the coronavirus-related fall in demand. These plants produce cooling/heating tubes, fuel hoses and plastic and metal parts. The production was restarted on 20 April 2020, in a reduced capacity, to provide the necessary supplies to various automotive plants in Germany.

According to the trade union representative, ContiTech expects a very slow and gradual business recovery.

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