Government advances plans for laid-off 2,000+

History

The government is moving forward on two plans to alleviate problems for over 2,000 workers in two locations – 1,500 from the ISD Dunaferr steelworks in Dunaújváros and 545 from the Sanyo factory in Dorog – about to lose their jobs.

The suggested relief plan for Dunaferr jobs, i.e. a government takeover or “deprivatization” of the plant, first publicly put forth by National Economy Minister Mihály Varga earlier this week has gotten the official go-ahead: Varga contacted ISD Dunaferr CEO Evgeny Tankhilevich to introduce his standing as lead negotiator and inform of the government’s intent to purchase.

On Tuesday, the Dunaferr group officially announced to the local labor office its plans to lay off 890 employees from parent company Dunaferr Zrt. Union head Zoltán Borbély told MTI 890 people would be laid off from the steeloworks, which has a headcount of 5,064. 

If the employer keeps to its earlier plans to lay off 1,500 employees, the trade union leader said, a further 600 people can be expected to be laid off from the group's other units. Early reports showed that Dunaferr has not been profitable since 2008; last year, output reached a record level, but due to the weakening euro and high prices on raw material, losses came to $36 million before taxes.

Meanwhile, Varga’s ministry also announced yesterday the earmarking of HUF 85 million – or about HUF 156,000 per – in job assistance programs for those who will lose employment when the Sanyo plant in Dorog closes down next spring. A government statement said those “losing their jobs have good chances to find new employment within one or two months” under the scheme.

– Material by Gergő Rácz was used in this report 

 

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