EMCC European Monitoring Centre on Change



Geographic Location

Country: Hungary
Region: Zala; Nyugat-Dunantul; Dunantul
Location of affected unit(s): Zalaegerszeg


Sector: Manufacturing
Other manufacturing, and repair and installation of machinery and equipment
31 - Manufacture of furniture
Number Employed: 130

Employment Effects

Announcement Date: 28-01-2009
Planned Job Reductions min: 130
Planned Job Reductions max: 130
Type of Restructuring: Bankruptcy
Employment Effect Start: 09-01-2009
Foreseen End Date: 01-04-2009
Direct Dismissals: 130

Additional Information

Vulcanus, a company employing mainly people with disabilities in the manual production of wooden furnitures, announced its bankruptcy in early January. The resulting closure of the factory is affecting all of its 130 employees, 100 of them having different disabilities. Following the bankruptcy notice the company's bank froze its assets thus workers have not even received their last salary.

Though the majority of these workers will not require unemployment assistance as they receive disability pension, their return to the labour market might be extremely difficult. The firm has been operating since 1991 and it has 4 production sites in three counties employing more than 200 workers, 65% of them with disabilities. Although, in the beginning, the company was performing jobs outsourced by other firms, its main profile has changed to furniture production since it bought a complete wood production plant.

Vulcanus' main problems started in 2007, with the the government reorganising the system of state subsidies provided for the employment of workers with disabilities. The company's situation worsened with the onset of the global crisis, causing the shrinking of markets.