EMCC European Monitoring Centre on Change

Fiat Auto Poland

Company/Organisation:
Fiat Auto Poland

Geographic Location

Country: Poland
Region: Centralny slaski; Slaskie; Poludniowy
Location of affected unit(s): Tychy

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 4862

Employment Effects

Announcement Date: 20-12-2012
Planned Job Reductions min: 1450
Planned Job Reductions max: 1450
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 01-01-2013
Foreseen End Date: 28-02-2013

Additional Information

In December 2012, Fiat Auto Poland announced plans to cut 1450 jobs at the factory in Tychy by the end of February 2013.The restructuring is reported to be due to a drop in sales and the deteriorating state of the car industry.

The company has signed a bilateral agreement with the local trade unions setting out the conditions of the dismissal procedures. Redundant workers will receive a severance pay amounting to 9 - 18 months' wages, according to seniority. The company’s spokesperson also announced their cooperation with the Poviat Employment Agency.

Moreover, the local authorities and the Poviat Employment Agency have designed a programme of 'social shock absorbers' for redundant workers and asked the Ministry of Labour and Social Policy for public aid worth 20 million PLN.

Fiat Auto Poland currently employs 4,862 workers. They will continue to produce Fiat 500, Lancia Ypsilon and Ford Ka models, but the company has decided to end production of the Panda Classic in Tychy and relocated the production of the new model to Italy.

As reported, Poland has applied for assistance from the European Globalisation Adjustment Fund (EGF).