Fiat to shed 700 jobs at Serbian factory

By bne IntelliNews July 13, 2016

Fiat Chrysler Automobiles (FCA) Srbija factory in the town of Kragujevac will retain 2,500 of its 3,200 workers following a voluntary redundancy programme, with those who have opted to leave set to receive their redundancy payments on July 28, national broadcaster RTS reported on July 11.

FCA announced on June 14 it has to switch production at the factory in Kragujevac from three shifts to two and start a reduction of the workforce through voluntary departures, due to market demand.

Workers had 12 days to decide whether to take the voluntary severance package offered by the company, and filing had started on June 27 and ended on July 8. The company is now working in only two shifts and produces around 400 vehicles a day, down from the 640 cars a day produced in three shifts.

According to Zoran Markovic, the leader of the Kragujevac-based Independent Union, around 600 of the 1,500 people working for the company's subcontractors have also decided to leave.

Based on the agreement between the factory's union, the management and Prime Minister Aleksandar Vucic, the social programme entails a severance package as prescribed by law and compensation in case of unemployment, while workers who have chosen to leave the company voluntarily may also count on a fixed amount of €3,000, with compensation for unused annual leave.

For example, the workers who have spent three years in the factory, which is the case for most of them, can count on severance packages worth €4,800.

Despite the recent move, the Serbian government said on July 1 after Vucic's meeting with the CEO of Fiat Alfredo Altavilla in Turin that FCA remains committed to its operations in Serbia.

FCA, a joint venture between Serbia’s government and Italy's Fiat, is Serbia’s top exporter, though its exports dropped to €1.18bn in 2015 down from €1.36bn in 2014.

Related Articles

Overlooked carbon costs spell financial trouble for Western Balkan coal power plants

Ten coal-fired power plant projects across the Western Balkans are facing serious financial problems as they have not taken properly into account carbon costs, according to ... more

PMs of Serbia and Kosovo clash at Western Balkan summit ceremonial dinner

Serbian Prime Minister Aleksandar Vucic reportedly confronted his Kosovan counterpart at the ceremonial dinner during the Western Balkan Summit, over Pristina’s decision to re-register ... more

US puts Albania, Bosnia and Serbia on blacklist of major money laundering countries

The US department of state has included Albania, Bosnia & Herzegovina and Serbia in its latest list of major ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss