The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Electrical Equipment 27 - Manufacture of electrical equipment
New offshoring locations
Slovakia, Czechia, Poland
100 - 200 jobs Number of planned job losses
Announcement Date
5 May 2006
Employment effect (start)
1 January 2007
Foreseen end date
31 December 2007
Description
After the dismissal of 100 people since December 2005, another 400 employees will be laid off in the second half of 2006 from Delphi Packard Hungary, one of the two Hungarian subsidiaries of American company Delphi Corporation which produces mobile electronics and transportation components. The affected Szombathely unit, which was established in 1990 and was turned into a model site for the company’s European plants in 2005, manufactures wiring assemblies, radios, and sensing diagnostic modules. The regional employment office along with the Minister in charge of the Prime Minister’s office and Szombathely’s mayor have been informed of the dismissals, the Human Resources and Communication manager said. The cable division is the most affected one within the unit. The mass redundancy is said to be a consequence of Delphi Corporation’s severe financial difficulties and an organisational restructuring in the course of which manufacturing of bunched cables will be moved to the Slovakian, Czech and Polish units where the same work process has been running on a large scale. A compensation plan has been drawn up for those dismissed, and the Minister in charge of the PM’s office expressed the government’s readiness to provide support for the company’s development and the re-training of employees. According to recent news, Delphi is making steps to start the manufacturing of washing machine controlling chips for Electrolux, which would require highly qualified workforce along with an investment of several billion HUF. Negotiations with the workers council and trade unions have been concluded and a compensation plan has been finalised which would take into consideration also social aspects beside the worker's performance. Delphi is ready to support the re-training of laid off employees and, together with the regional employment office, is organising a job fair among local companies for those dismissed. A Szombathely-based company expressed interest in hiring 100 of Delphi's dismissed employees. In December 2006 it was reported that instead of the mass redundancy of 400 employees planned earlier, 100-200 workers are expected to be laid off in the course of 2007 from the cable division of the unit. The company is striving to keep as many employees as possible through retraining in the 550-strong electronics division which started the manufacturing of washing machine controlling chips for an Electrolux site in Italy. Media in January 2007 reported that 50 employees were laid off until the end of 2006 and further 200 people are expected to be laid off in the course of 2007.
Sources
7 May 2006: Napi Gazdaság
10 May 2006: Magyar Nemzet
5 May 2006: Világgazdaság
13 December 2006: Világgazdaság
Citation
Eurofound (2006), Delphi Packard Hungary, Offshoring/Delocalisation in Hungary, factsheet number 63551, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63551.
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