Restructuring events
European Restructuring Monitor (ERM)
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.
800 workers are to lose their jobs following the bankruptcy of energy company Vértes Erőmű with 750 to follow over the next three years. Production is to stop in December at the last Hungarian coal mine, putting 800 pitmen out of work. The same company owns a thermal power station at Oroszlány with 750 workers, which is also due to close completely in three years time.
The closure was widely predicted over the last few years at the company, Vértes Erőmű Zrt. as it operated at a significant loss. The government could not protect it from bankruptcy despite subsidising its output. The dialogue between the social partners shows the high importance of the plant for the regional labour market. Employees face a difficult task to find new work places, as the region is one of the less developed in Hungary. The ongoing consultation with the union and the regional employment office should provide support for reemployment and retraining.
Eurofound (2010), Vértes Erőmű, Bankruptcy in Hungary, factsheet number 70828, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/70828.