EMCC European Monitoring Centre on Change

Magyar Suzuki

Company/Organisation:
Magyar Suzuki

Geographic Location

Country: Hungary
Region: Komarom-Esztergom; Kozep-Dunantul; Dunantul
Location of affected unit(s): Esztergom

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 2536
Group: Suzuki Motor Corporation

Employment Effects

Announcement Date: 21-03-2020
Planned Job Reductions min: 600
Planned Job Reductions max: 600
Type of Restructuring: Internal restructuring
Employment Effect Start: 20-03-2020
Foreseen End Date: 23-03-2020
Direct Dismissals: 600

Additional Information

Automobile manufacturer Suzuki has laid off 600 agency workers from its Esztergom plant, according to the temporary works agency involved. Many of the affected workers are from Eastern Hungary and from Ukraine.

The layoff came shortly after the decision by Suzuki on 18 March to stop production entirely due to the coronavirus outbreak for the period between 23 March and 3 April.

The Hungarian Metalworkers' Federation sent en open letter to both employers and to the government, criticising the company for the decision that all laid-off workers leave the worker hostel by the morning of 23 March, in the midst of the coronavirus epidemic, with many workers having nowhere to go. Also the trade union called on the government to follow the example of neighbouring countries and cover the wages of those employees who are planned to be laid off, and to broaden the scope of employer and employee social contribution "holidays" that is presently limited to a few specific economic sectors.

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