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
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
