Severovychod; Liberecky;
Location of affected unit(s)
Česká Lípa
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.3 - Manufacture of parts and accessories for motor vehicles
New offshoring locations

1,400 jobs
Number of planned job losses
Job loss
Announcement Date
24 August 2010
Employment effect (start)
Foreseen end date
31 March 2011


Delphi Packard Electric CZ, a subsidiary of Delphi Automotive Systems which is a global supplier of electronics for the automotive industry, has announced 1,400 job cuts with the closure of its plant in Česká Lípa by the end of March 2011. The management decided to relocate the production to Romania and partly to Poland. The company, focusing on wiring harness production, is one of the biggest employers in the region. Trade union are ready to fight for a better severance pay package for dismissed workers.

In May 2010, the company announced it would have cut half of its workforce (700 jobs) at the plant by the end of 2010, due to the termination of customer order contracts with Audi and BMW. This plan has later been modified with the current decision to close the plant.

On 23 September, trade unions and the management agreed severance pay amounting from at least 7.7 multiple of average monthly wage. After more than 15 years of employment, workers will get 14.3 multiple of average monthly wage. Management initially offered from 1.5 to 4.5 multiple of average wage beyond statutory framework.



Eurofound (2010), Delphi Packard Electric CZ, Offshoring/Delocalisation in Czechia, factsheet number 70830, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/70830.