Type
Offshoring/Delocalisation
Country
Hungary
Region
Alfod es Eszak; Del-Alfold; Bacs-Kiskun
Location of affected unit(s)
Helvécia
Sector
Manufacturing
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.32 - Manufacture of other parts and accessories for motor vehicles
New offshoring locations
Spain

100 - 300 jobs
Number of planned job losses
Job loss
Announcement Date
3 March 2019
Employment effect (start)
1 March 2019
Foreseen end date
1 May 2019

Description

Antolin Hungary, a subsidiary of Spanish automotive interior manufacturer Grupo Antolin, announced to its employees a layoff of at least 100 employees in its Helvécia plant. The firm cites a decrease of orders and a need of restructuring as the reason of the downsizing. The workforce cut will affect a wide range of employees, from middle-level managers to production line workers, to warehouse keepers. Employees approaching retirement are among the redundancies as well.

Antolin Hungary is one of the largest suppliers of the nearby Mercedes-plant in Kecskemét. It produces carpets and vehicle door panels for Mercedes in Hungary and for other customers abroad.

The reason of the decrease of orders from Mercedes in unclear, since Mercedes is in the process of expanding its capacities in Kecskemét.

The workforce reduction comes less than three years after the firm launched its Helvécia plant, an investment that was given financial support from both the EU and the Hungarian state. Now, according to news reports, the whole production lines will be relocated to Spain.

Shortly before the announcement of the downsizing, the firm was among the first companies that introduced a new overtime system in January 2019, making use of the so-called ’slave law’. This law makes it possible for employers to require overtime amounting to 400 hours per year per employee, without trade union consent. This implies that the firm responds to decreasing demand by cutting workforce and simultaneously maximising the workload of the remaining staff.


Sources

Citation

Eurofound (2019), Antolin Hungary, Offshoring/Delocalisation in Hungary, factsheet number 97360, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/97360.