Velenje, 19 April (STA) - Household appliance maker Gorenje has made a pact with the unions promising to preserve jobs in Slovenia even as it pursues plans to shift lower-value manufacturing to low-cost locations such as Serbia.
If production is relocated, the company will secure new product lines in
order to preserve jobs in Slovenia, according to the agreement which was
confirmed by Gorenje's supervisory board on Thursday.
the two representative unions in the company will cooperate with the
management in any relocation decisions and $refrain from any action or
decisions running contrary to the agreement.$
will apply under the condition that the business conditions do not
deteriorate substantially, the company said in a statement.
has been carrying out an $optimisation of production locations$
in a bid to cut costs. It has significantly expanded its facilities in
Serbia and in the Czech Republic.
In early March it announced it was
closing a stovetop plant in Finland, which it obtained as part of its
acquisition of Sweden's Asko in 2010, and moving production to its Czech
plant Mora Moravia.
In Serbia it has rapidly expanding production
locations in Valjevo, Zaječar and Stara Pazova.
The signing of the
agreement with the unions comes after media reports suggested growing
unease among workers in its base in Velenje, who were said to be afraid of
their jobs due to relocation plans.
The supervisory board also
confirmed today the arrival of Peter Groznik as new chief financial
Groznik, a lecturer at the Ljubljana Faculty of Economics,
has been doing financial consultancy for Gorenje since late 2010.
succeeds Marko Mrzel, who will take responsibility for the same of small
and big household appliances.