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Ford in talks to cut work week at Russia plant
U.S. carmaker Ford Motor Co. is in talks with unions to cut the workweek at its sole Russian assembly plant to compensate for expected falls in demand, a Ford spokeswoman said on Thursday.
"As we forecast continuing overall declines in sales of new cars on the Russian market, Ford ... is proposing to cut the work week to four days, as we did at our European plants," Ford spokeswoman Yekaterina Kulinenko said by e-mail.
She said that under Russian labor laws it would take two months to put a cut into effect from the day the order is given to cut the week at the plant in Vsevolozhsk, just outside St. Petersburg. "There has been no order yet."
The union at the plant issued a statement protesting the proposal.
"The union committee believes the company is conducting its business in bad faith in the financial crisis by imposing a partial work week, and (the union) retains the right to appeal to the regional government ... to investigate the situation at the plant," the union said.
Aid is available
The government of Prime Minister Vladimir Putin, facing rising unemployment, has told Russian carmakers not to emulate U.S. car giant General Motors in making heavy job losses at its plants. Despite this, Russian contract manufacturer Izhavto yesterday announced plans to shut down production indefinitely.
Putin's government has suggested that foreign carmakers with operations in Russia were technically eligible for government aid to the industry.
Russian media have reported that Ford reduced the price of the Russian-assembled Focus to a level just below the cut-off point for state subsidies on car loans.
The plant had been planning to produce 100,000 units of the Focus compact car and recently launched assembly of the mid-sized Mondeo at the Vsevolozhsk plant. It had planned to produce 25,000 Mondeos.
New-car sales have fallen 36 percent in Russia this year, with 252,314 sold in January and February, the Association of European Businesses has said. Last year, 3.2 million automobiles worth a total of $69 billion were sold in Russia.
"As we forecast continuing overall declines in sales of new cars on the Russian market, Ford ... is proposing to cut the work week to four days, as we did at our European plants," Ford spokeswoman Yekaterina Kulinenko said by e-mail.
She said that under Russian labor laws it would take two months to put a cut into effect from the day the order is given to cut the week at the plant in Vsevolozhsk, just outside St. Petersburg. "There has been no order yet."
The union at the plant issued a statement protesting the proposal.
"The union committee believes the company is conducting its business in bad faith in the financial crisis by imposing a partial work week, and (the union) retains the right to appeal to the regional government ... to investigate the situation at the plant," the union said.
Aid is available
The government of Prime Minister Vladimir Putin, facing rising unemployment, has told Russian carmakers not to emulate U.S. car giant General Motors in making heavy job losses at its plants. Despite this, Russian contract manufacturer Izhavto yesterday announced plans to shut down production indefinitely.
Putin's government has suggested that foreign carmakers with operations in Russia were technically eligible for government aid to the industry.
Russian media have reported that Ford reduced the price of the Russian-assembled Focus to a level just below the cut-off point for state subsidies on car loans.
The plant had been planning to produce 100,000 units of the Focus compact car and recently launched assembly of the mid-sized Mondeo at the Vsevolozhsk plant. It had planned to produce 25,000 Mondeos.
New-car sales have fallen 36 percent in Russia this year, with 252,314 sold in January and February, the Association of European Businesses has said. Last year, 3.2 million automobiles worth a total of $69 billion were sold in Russia.
