AvtoVAZ will cut 20% of staff in two years

Russia’s largest carmaker AVTOVAZ plans to reduce staff numbers by 6 thousand people in 2017, announced the presidential envoy in the Volga Federal district Mikhail Babich during the meeting on the development of the automaker. About it reports TASS.

According to Babich, another 2.2 million people will be cut in 2018. In just two years the number of employees of the automaker will decrease more than 8 thousand people, or 20%. “People should get all the required payments, the people should get a new profession, a new well paid jobs. All activities of the administration of the enterprise must perform so as not to create social tension,” said Babich (quoted by TASS).

The head of AVTOVAZ, Nicolas Moore told “Interfax” that the company is experiencing a surplus of staff in some production lines and the lack of people on the other.

In an official statement the company said that it confirms plans announced in February, the reduction is only 740 people. “Currently the company has no plans to increase the number of employees”, — emphasizes AVTOVAZ. Moreover, for the first time in recent years, the company started the reception staff: 150 youth workers have been taken on the line B0, 180 engineers until the end of the year will join the team engineering enterprises.

The head of the press service of the company Sergey Ilinsky in a conversation with RBC recognized that now due to market conditions the state of the plant objectively exceeds the demand, so the company is looking for options to organize people in other group companies AVTOVAZ. According to him, the speech about the dismissal of 8 thousand employees is not, but according to the plans of the company with the main production plans to cut “several thousand” people. The exact figures he did not name, adding that she will be fired “as many employees as will the new jobs” (in other group companies).

The Chairman of the primary trade Union organization of AVTOVAZ, Sergei Zaitsev told RBC that no notification of new reductions, the Union did not receive. Final notice about reducing the Union has received in February, then it was about 740 employees, he explained. According to Zaitsev, the automaker signed an agreement on the creation of new jobs. Now there are about 2 thousand vacancies in subsidiary companies in the city and nearby towns. More than 1 thousand workers to be employed in the industrial Park, there are about 700, said Zaitsev. “Production program is growing, and if it is stable, then we will work with the administration to revise the standards for the number of employees,” he concluded.

The analyst of “VTB Capital” Vladimir Bespalov said that AVTOVAZ has the potential to optimize the number of personnel, because the initial state was big enough. “Now we see that things are displayed in a subsidiary company, some work is outsourced, some processes avtomatiziruete — within these trends, there is a logic in the optimization of the personnel”, — he said. According to Bespalov, the tendency of the optimization will be present for several years.

In 2016, the number of employees of AVTOVAZ decreased by 9.7%, to 43.3 million people. In February, the automaker announced that it plans to cut 740 employees, or less than 2% of the total headcount of the enterprise. Then, assured that everyone laid off will be offered jobs in different departments of AVTOVAZ. In the first quarter of 2017 average number of employees was 39 725 people, to the report of the company.

1 Jun in an interview with RBC at the St. Petersburg international economic forum the head of the automaker Nicolas Moore reported that by the end of 2017 AVTOVAZ will reduce more than 2 thousand people, but specific figures, he did not mention. Some workers will be exempt, “at will”, part — translated into the industrial Park, said the Mor.

In the spring it was reported that the Samara region may receive about 600 million rubles from the Federal budget to support the optimization of the state of the automaker. This initiative was supported by the Ministry of industry and trade, Ministry of labour and Ministry of economic development, but the Finance Ministry has opposed, said on 7 July, the Minister of labour and social protection Maxim Topilin, reported, “RIA Novosti”. The Ministry submitted to the government a package of documents on grant of the Samara region with the differences, said RBC representative office. “We hope for the settlement of disputes in the near future,” he added.