Layoffs at Helios Before Arrival of New Owner

23. 12. 2013

Layoffs at Helios Before Arrival of New Owner


Coatings maker Helios, the first from the list of 15 companies slated for privatisation to have been sold, is facing first layoffs even before the new owner, Austria's Ring International, has taken over.


Concrete figures are not available, but media have reported that between 100 and 170 employees stand to lose their jobs, which figures have however not been confirmed by the company's trade union.

 

The management has indicated that redundancies are related to worse-than expected business results and mostly affect administrative and managerial staff.

 

Unofficially, most of those on fixed-term contracts will also lose their jobs, while only a minor part of staff cutbacks is on account of attrition.

 

The management has told the STA that the group is facing an adverse economic situation in all of its markets. Annual sales are estimated to be 7% below plans, and projections for 2014 are not encouraging.

 

 

Staff reduction comes in response to the situation, the management says, suggesting it knows the staff and organisational structure well enough to implement the measure in such a way as to enable the group's further development and preserve the remaining jobs.

 

"The management has therefore taken this burden upon itself to implement the measure even before the arrival of the new owner," a press release from the company reads.

 

"Adjustment of staff numbers affects primarily managerial and administrative services. For shop floor workers minor adjustments will only be necessary in the programme that is falling the most below plans."

A consortium comprising mostly state-owned banks and insurance companies, signed a deal to sell 73.12% of Helios to Ring International in October.

 

The arrival of a private partner entails a risk that business decisions taken will not benefit people, the company's trade union said on Friday, cautioning against privatisation at "any cost".

 

The unionists also underscored that "the benefit the state will obtain through the sale of its stake will obviously be negligible as the proceeds will be spent the next moment to fill up holes at banks".

 

Helios employees nevertheless hope that after restructuring, conditions will be created that would enable growth and new hiring.

 

Helios employs 2,200 people and has ten production facilities in Slovenia, Croatia, Russia, Serbia and Ukraine.

 

Source: Slovenia Times

 

Layoffs at Helios Before Arrival of New Owner