EMCC European Monitoring Centre on Change

Modexim

Company/Organisation:
Modexim

Geographic Location

Country: Romania
Region: Dolj; Sud-Vest
Location of affected unit(s): Craiova

Company

Sector: Manufacturing
Manufacture of textiles, apparel, leather and related products
14.13 - Manufacture of other outerwear
Number Employed: 300

Employment Effects

Announcement Date: 27-01-2020
Planned Job Reductions min: 300
Planned Job Reductions max: 300
Type of Restructuring: Closure
Employment Effect Start: 27-01-2020
Foreseen End Date: 29-02-2020
Direct Dismissals: 300

Additional Information

Romanian manufacturer of clothing and underwear Modexim has announced plans to close its plant in Craiova (Dolj County) by the end of February 2020. Almost 300 employees will be dismissed by collective redundancy. The company stated that they would respect all the statutory social protection measures.

According to a member of the National Union Bloc (Blocul Național Sindical) the reasons behind the closure are the skilled workforce shortages, the increase of the minimum wage and lack of orders due to labour costs. In an interview, one representative of Craimodex Trade Union (representing the employees from Modexim), who took part at the negotiations with the employer said that the redundancy process is due to start on Monday which is a very tight timeframe and which is out of the ordinary. 

The County's Territorial Labour Inspectorate has confirmed the collective redundancy.

Sources: