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Friday, December 3, 2021

Automotive. “Lack of support can mean layoffs” Employers plead for help

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The automotive industry is struggling with supply chain problems and more companies are temporarily shutting down their plants. – Without support, companies may be forced to lay off employees – says Jacek Męcina, advisor to the management board of the Lewiatan Confederation. The employers’ organization appealed for help for the sector.

As the expert reminded, losses in 2020 compared to 2019 amounted to about 30%, and the prospects for this year, due to problems with the supply chain, are even more serious. Some experts expect to return to the status from 2019 only next year.

Problems of the automotive industry. An appeal for help

He pointed out that the difficult situation of the industry caused by the pandemic in 2020 has further worsened this year, mainly due to the lack of parts and disruptions in the supply chains, which in recent months meant downtime and problems with resuming production in the coming months.

He noted that downtime in the automotive industry affects not only Poland, but the whole world. However, in many countries of the region, where workplaces were interrupted or limited in production, public aid programs were re-launched. They provide wage subsidies which help to protect the automotive industry’s potential and workers’ income. – Such solutions are being introduced in Germany, Spain, the Czech Republic and Slovakia – he said.

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He added that the social partners at the meeting of the Social Dialogue Council adopted a resolution in which they appeal to the government to urgently develop and launch a program of assistance and protection of jobs and remuneration for entrepreneurs and employees of the automotive industry in Poland.

– Lack of support for the industry may mean layoffs – emphasized Męcina.

Automotive industry in Poland

As he pointed out, the automotive industry is a flywheel for the Polish economy. In 2018, the value of production amounted to PLN 145 billion. The industry employs approx. 225 thousand. employees with an average salary of 5.6 thousand PLN (8% more than the average in the economy). The value of exports in 2018 reached EUR 32.3 billion, which puts Poland in fourth place in the European Union and ninth in the world – the expert reminded.

Main photo source: Shutterstock

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