- Title: CZECH REPUBLIC: Skoda takes measures to deal with financial crisis
- Date: 23rd December 2008
- Summary: MLADA BOLESLAV, CZECH REPUBLIC (RECENT) (REUTERS) NEW SKODA CARS STANDING IN THE FRONT OF SKODA FACTORY SKODA FACTORY ROW OF SKODA CARS SKODA CARS HEADQUARTERS SKODA SIGN (SOUNDBITE) (Czech) SKODA AUTO SPOKESMAN, JAROSOLAV CERNY SAYING: "Looking at the problems in foreign markets in our distribution fields within Europe, and looking at employment possibilities, we decided to solve the situation with the implementation of four day weeks in the first half of next year. Workers who will not be working on Fridays next year will get 75 per cent of their wages."
- Embargoed: 7th January 2009 12:00
- Keywords:
- Location: Czech Republic
- Country: Czech Republic
- Topics: Industry
- Reuters ID: LVA8MPI7DSUWZSAF6AICY01LDV61
- Story Text: Workers at the Czech car company Skoda will begin the New Year by working a four day week, as part of the company's measures to deal with the financial crisis.
Czech car company Skoda is the latest company to take measures to deal with the economic crisis sweeping Europe. Skoda Auto workers will return work after the New Year, to a four day week for the first half of 2009.
"Looking at the problems in foreign markets in our distribution fields within Europe, and looking at employment possibilities, we decided to solve the situation with the implementation of four day weeks in the first half of next year. Workers who will not be working on Fridays next year will get 75 per cent of their wages, " Skoda's spokesman Jaroslav Cerny told Reuters.
The Czech economy is highly dependent on the car industry, which accounts for 21 percent of overall exports. The country's car industry will shed over 13,500 jobs in the next few months as suppliers are being hammered by recession in the euro zone, but vehicle output will still grow next year.
Carmakers across the continent have announced major cuts to production due to falling demand and many factories will close for long periods over the Christmas holidays.
Skoda Auto announced an extension to a shutdown set for the last two weeks in December until January 11 next year. Its planned cuts for the final three months of 2008 will trim output by 31,000 cars. A Skoda executive said last month the company expected a 9.5 percent rise in sales this year to 690,000 units, and will target unchanged sales in 2009.
There have been no collapses in the Czech banking sector as a result of the global turmoil but all other companies are being hit hard, and both the central bank and the government have repeatedly cut growth forecasts for 2009 to below 3 percent. - Copyright Holder: REUTERS
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