ONE of the last traditional clothing producers in Slovakia, Makyta Púchov, will lay off over 650 employees. Apart from the global economic crisis and a slump in orders, the company has been forced to initiate the layoffs due to the loss of a business partner which produced car seat linings in Makyta and decided to relocate its production to a country with lower labour costs, the board of directors of the company announced, as reported by the SITA newswire.
Another factor behind the decision to lay off employees is the minimum wage increase that will become effective on January 1, 2010, the company said.
The layoffs will apply to the production units making ready-made clothing in Púchov and Bytča as well as to administrative staff and employees of pre-production operations. The company is striving to preserve employment in two production units making ready-made clothing in Púchov and in Námestovo. The company’s management is adopting changes in business strategy and cost savings in order to meet this goal.
The layoffs will affect 475 active employees and 179 employees on maternity and paternity leave. Many of the laid off employees are women in their fifties, the Markíza TV channel reported.
9. Nov 2009 at 0:00 | Compiled by Spectator staff