Groclin plans group layoffs

MAG
21-11-2008, 10:05

Warsaw (Puls Biznesu) – As many as 600 workers may be fired. The producer of car seat covers fights not to lose cash flow.

Car producers are cutting capacities, so do their subcontractos. Inter Groclin Auto, the producer of car seat covers, has to save. The company cuts employment faster and faster. In its quarterly report published several days ago, the company said that 345 workers were laid off in the first half of the year. In the third quarter, their number amounted to 300 people. And this is not all.

“We very seriously consider to launch group lay offs procedure. We are consulting this idea with representatives of the employees. Final decision will be made in upcoming days. Up to 600 workers will be affected in both Polish plants: in Grodzisk Wielkopolski and in Karpick”, Jerzy Pieta, Inter Groclin Auto spokesman said.

The company explains it has to fire workers because not all of them accepted new working conditions. Groclin reduced working time to four days a week. Employees are not paid for one more free day. De facto, their wages dropped.

“20-30 percent of the staff did not agree for these changes. There are people among them we care for very much because we have invested quite a lot in them. That’s why we would like to keep them. We are preparing a structure of potential layoffs”, Jerzy Pieta explained.

Groclin has no other way. It has to cut costs as it has problems with cash flow. In the first three quarters of the year, the company had PLN 294m of sales against PLN 349m a year ago. Instead of PLN 13.3m of operating income as generated last year, it has PLN 16m of operating loss today. The net loss amounts to PLN 8.5m while a year ago the company had PLN 6m of net income. This is no help while negotiating with banks. The management is trying to delay the deadline to pay back credits. If it has to pay them back as planned before, the company may lose its cash flow which will be a threat to its everyday operations.

© ℗
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Podpis: MAG

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