EMCC European Monitoring Centre on Change

Zetor Tractors

Company/Organisation:
Zetor Tractors

Geographic Location

Country: Czechia
Region: Jihomoravsky; Jihovychod
Location of affected unit(s): Brno

Company

Sector: Manufacturing
Manufacture of transport equipment
29 - Manufacture of motor vehicles, trailers and semi-trailers
Number Employed: 650
Group: HTC

Employment Effects

Announcement Date: 19-12-2018
Planned Job Reductions min: 145
Planned Job Reductions max: 260
Type of Restructuring: Internal restructuring
Employment Effect Start: 31-01-2019
Foreseen End Date: 31-03-2019

Additional Information

Zetor Tractors, a traditional Czech manufacturer of tractors, is to cut between 100 and 260 jobs due to economic problems by the end of March 2019. If the maximum number of jobs is cut, it will roughly  account for 40 percent of the company´s current workforce. The job losses will concern 131 office workers, 12 managers, 53 maintenance and control workers and 64 blue-collar workers. The main reason is the fall in sales and cheaper foreign competition.

Update 2/4/2019: Zetor dismissed 145 workers, which is 115 less than announced in December 2018. According to the company´s director, cost savings were found in other areas and the original plan was revised. The trade union said they originally demanded a 5.5 percent increase in wages, but management said it could not guarantee more than two percent, the final agreement envisages a wage increase of 600 crowns which is a 2 percent increase in wages.
 

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