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Dräxlmaier wants out of court settlement

GERMAN car component manufacturer Dräxlmaier, which recently withdrew its decision to build a plant in Rimavská Sobota, would like to settle the matter out of court, Rimavská Sobota Mayor Štefan Cifruš confirmed to the Hospodárske noviny daily.

Both parties have agreed to meet in Bratislava on May 18 to negotiate the next steps. An agreement concluded before the deal fell through clearly states that any trial stemming from Dräxlmaier's failure to fulfil the conditions will have to take place in Austria.

The town plans to ask that the land it purchased for the deal be returned and that the more than Sk30 million it invested in preparations be reimbursed.

According to the town hall legal department, Rimavská Sobota will certainly win the right to the land, as the town was indemnified against such a situation.

Dräxlmaier's announcement came as a shock to a region that badly needed the 1,200 jobs the company would have provided to ease its 30 percent unemployment rate. But problems started early when Dräxlmaier announced its intention to give middle management a monthly salary of just Sk7,500 (€200), about Sk1,000 lower than the average. This prompted Social Affairs Minister Iveta Radičová to require the salaries be set at Sk12,000. Dräxlmaier even wanted to cut social benefits. "It is proof that the firm was not a serious partner for our republic," Radičová said. One month ago, the company finally accepted the demand for higher salaries, then one month later, announced it was moving to Romania.

Compiled by Marta Ďurianová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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