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AvtoVAZ ( Lada) to Reduce 102,000 Workforce by 27,600

Here is a translation of the original press release from AvtoVAZ (LADA). It is is bit rough but in a nutshell they will be laying off a total of 27,600 workers which includes 5000 white collar positions. The company currently employes 102,000 workers. The reductions will be done with a combination of retirements, early retirements and redeployment of workers into the contruction industry.

September 23, 2009 President, Igor Komarov, and the union AVTOVAZ discussed activities in accordance with which the target number of employees will be about 75 thousand people.

Within the anti-crisis program is a redistribution of capacity utilization.  Management AvtoVAZ managed to significantly reduce the number of released initially discussed in staff numbers 36 000 people.

According to the scheme provided by union leaders, in total, will release no more than 27 thousand 600 people, including 5 thousand executives, professionals and employees, an order which was issued on September 14, 2009.

 At a meeting with the President of AvtoVAZ trade union leaders discussed the main theses of the anti-crisis program.  In a crisis, the program includes the production of some 500 000 cars a year.  The company operates in one shift, the power load by 65%.  In such a situation should decrease the number of personnel, which today forced all automakers have resorted. The main task – to keep hard-working team of VAZ and concern. ”

 Today AVTOVAZ works 102 000 people.  This team can not provide the effectiveness and sustainability of production, therefore, agreed to reduce the number of personnel on 27 thousand 600 people:

• 13 000 pensioners, who will be paid all agreed collective agreement amount.  AvtoVAZ guarantees to those who will retire in September and October this year, all paid in full;

 5 500 employees approaching retirement age (women aged 53 years, men – from 58 years) – they have a real opportunity to get both public and corporate pension;

 • 9 100 employees working age, which has already developed a plan for further employment.  By the beginning of 2012 6 000 of them will again be in demand at AVTOVAZ to work on a new line, the project is adopted AvtoVAZ with RENAULT.  Prior to that, people will be offered temporary jobs in Togliatti, the work on the construction of special economic zone (SEZ) project which is discussed in the RF Government, retraining for up to 5 – 6 months from the grant. In the future, from 3 000 to 5 000 people will take on the enterprises of the SEZ.

 AvtoVAZ management considers it especially important to understand the problems of the enterprise trade union – the measures supported by the team, have helped reduce losses of more than 2-fold compared with the first half of 2009.

 I. Komarov said that the Government, ministries and banks expect the team AUTOVASE fulfill its part of the work – to improve production efficiency, yield to the break-even level and optimize staffing.  For their part, federal and regional authorities are ready to help the company in addressing social issues

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