Construction firms to downsize and former transport minister blames PPP termination

The Slovak government's recent decision not to complete the first public private partnership (PPP) highway project will mean redundancies at the Doprastav and Váhostav construction companies, opposition MP and former transport minister Ľubomír Vážny (Smer) told the TASR newswire on September 8. Vážny said employment contracts will be terminated for 750 workers at Doprastav and 320 workers at Váhostav by the end of 2010.

The Slovak government's recent decision not to complete the first public private partnership (PPP) highway project will mean redundancies at the Doprastav and Váhostav construction companies, opposition MP and former transport minister Ľubomír Vážny (Smer) told the TASR newswire on September 8.

Vážny said employment contracts will be terminated for 750 workers at Doprastav and 320 workers at Váhostav by the end of 2010.

“The way it is in construction trade is that one job involves four sub-suppliers and ancillary activities, meaning that the upshot of such a government’s manifesto will be that around 5,000 people will lose their jobs,” said Vážny. He predicted these people will fall on to the social safety net by year’s end. Vážny also opined that the two companies will continue to downsize personnel in 2011, with Doprastav and Váhostav likely to lay off another 500 and 200 people respectively.

Vážny also criticised the government’s decision to hike the annual price of a highway sticker from €36.50 to €50 as a typical right-wing solution. “This is preposterous attack on motorists,” he added. Such a decision will also result in price hikes for goods and services, according to him, because small businesses with cars weighing less than 3.5 tonnes will also be subject to the increased price of stickers.

Source: TASR

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

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