Recent changes in the world market situation and the dramatic Europe-wide decline in sales have forced Magyar Suzuki Corporation to adapt to market decline and, parallel to that, reduce its workforce. In the present situation caused by global recession, Magyar Suzuki’s measures serve to maintain the financial stability of the company and keep as many jobs as possible.
Due to the global financial and economic crisis and worsening market conditions, the sales figures of Magyar Suzuki Corporation dropped dramatically. Consequently, to adjust the factory’s output to the demand on the market, a reduction of the production became necessary. Currently, the company expects to produce 210,000 cars in 2009, but this figure may change, depending on sales figures of the coming year. In order to estimate the situation as correctly as possible and to make the best possible decisions, in the forthcoming months Magyar Suzuki Corporation will analyse the trends on the market very closely and review its production plan on a monthly basis.
Starting from December 8th, the company returned to the production system in two-shifts, however it is only a temporary solution until the year end shut down. From 5th January 2009, MSC will re-introduce its classic 2-shift-2 group 5 working days operation. Due to this change in production, the company is forced to make about 1,200 employees redundant.
Magyar Suzuki Corporation worked out the conditions of the dismissals consulting with Work Council. The company, in the first place, will disclose the information regarding the dismissals with those affected by this measure. Magyar Suzuki Corporation will make public the details of the conditions of the dismissals only after the employees have been informed.
Like many other multinational players of the market, Magyar Suzuki will be forced to make hard decisions. Plans have been established to implement several changes with the primary objectives of maintaining financial stability and keeping as many jobs and supplier contracts as possible.
Among the cost saving measures, the company will rationalise its system of support for commuters. In the past few years, on its own decision, Magyar Suzuki Corporation offered contribution to employees commuting from beyond 30 kilometres. Under the present circumstances, the bus service provided by MSC will only operate within a circle of 30 kilometres from the plant.
Clarifying the wrongfully published, non-confirmed information in some media the company considers it necessary to comment on those, which have no valid base, even though MSC is still in the consultation period started on the 4th of December with the Work Council about the mass dismissal, 201 is the number of people who have voluntarily left the company since MSC started consultation with Work Council. These people received their average monthly salary including allowances until the 18th of February as well as the year end bonus.
In view of the respecting Hungarian law, MSC will refrain from disclosing the number of workforce voluntarily leaving dissolved by citizenship.
Those who would decide to stay but the narrowing of bus routes to a 30 km circle has a negative impact on their lifestyle and makes it harder for them to reach the workplace, will receive contribution according to the company regulation to get to nearest 30 km bus stop, where they can get on the company buses.
Magyar Suzuki Corporation will keep its employees updated about the changes and provide further information after the details of the dismissals have been disclosed inside the company.