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).