EMCC European Monitoring Centre on Change

Vítkovice Heavy Machinery (VHM)

Vítkovice Heavy Machinery (VHM)

Geographic Location

Country: Czechia
Region: Moravskoslezsky; Moravskoslezsko
Location of affected unit(s): Ostrava


Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.41 - Manufacture of metal forming machinery
Number Employed: 600
Group: Vítkovice Machinery Group

Employment Effects

Announcement Date: 29-03-2018
Planned Job Reductions min: 570
Type of Restructuring: Bankruptcy
Employment Effect Start: 01-04-2018
Direct Dismissals: 570

Additional Information

Czech engineering and metallurgical firm Vítkovice Heavy Machinery has undergone proceedings for insolvency and cut 570 jobs. Most employees have responded by submitting notices for not being paid since January 2018. If workers submit notices themselves about unpaid wages, the Labour Office should compensate their wages.

Unionists have already decided to cancel the company´s trade union on 7th May. According to the trade union leader, the situation is further complicated since the company did not file employees' tax returns. Therefore, employees might not be able to submit a tax return within the statutory deadline. Vítkovice Heavy Machinery decided to declare insolvency after two weeks of failed negotiations with a potential investor.