Unions protest perks as VW Slovakia fights for new recruits

By bne IntelliNews September 13, 2016

Trade unions at Volkswagen’s Bratislava plant will stage a protest on September 13 against what they see as discrimination against long-term employees.

In the increasingly tricky hunt for qualified staff in a tightening labour market, VW management is offering newcomers benefits, which include six months free transport and a cash bonus of €500 as they start. Long-term employees are not entitled to such perks.

In line with other countries in the region, the tightening Slovak labour market is seen as a risk to investment and economic expansion as employers struggle to find qualified workers. Tight conditions on the labour market pressure firms to distribute more earnings to employees and thus cut their own profit margins.

VW Slovakia trade union head Zoroslav Smolinsky said he expects some 1,000 people to appear at the factory gate to join the protest, TASR reports. “If the personnel situation in, say, one month gets even worse, will they perhaps offer food for free to the new people? ... The mood on production lines really isn’t good,” he declared.

Volkswagen is one of Slovakia’s biggest exporters and employers. Around 9,900 people are employed by the German carmaker in the country.

The auto sector is the engine of the Slovak economy, representing nearly half of industrial output in the country. Slovakia also hosts plants run by South Korea's Kia Motors and France's PSA Peugeot Citroen. Jaguar Land Rover will also place a factory in the country.

Related Articles

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Poland secures key permit for gas link with Slovakia

Polish state-owned gas grid operator Gaz-System has secured an environmental permit for the construction of a gas pipeline that will be part of a planned gas link with Slovakia, Gaz-System announced ... more

Labour shortage taking on crisis proportions, warns Slovak PM

The growing labour shortage bears the hallmarks of a crisis, Slovak Prime Minister Robert Fico said on April 4. While keen to boast of the health of the economy under his continued watch, Fico was ... 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