Empty company car parks and unusual peace in the vicinity of the Škoda Auto factories in Mladá Boleslav, Vrchlabí and Kvasiny confirm that production has largely stopped. The lack of chips for on-board electronics paralyzed production. See what factories and their surroundings look like during a shutdown.
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Yesterday, Škoda Auto stopped the production of new cars and focused only on completing the work-in-progress. The carmaker is struggling with a shortage of semiconductors, without which it cannot complete all the cars, so it has decided to dramatically reduce traffic for two weeks. According to the carmaker, the vast majority of employees stay at home and the company will pay them eighty percent of their salary plus budgeted bonuses.
Škoda Auto is in the most difficult situation in its recent history. Before collective bargaining, which begins in November, this weakens the position of trade unions, who have pushed for significant wage increases and better working conditions in recent years of economic prosperity.
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Wages will be discussed in the first quarter of next year, and the unions are ready to negotiate the best conditions again, but their demands must be in line with current economic realities. “In short, it is impossible to have unrealistic dreams of high growth values this year. The focus will be primarily on securing employment, which is a priority for the KOVO Unions, “said the weekly Škodovácký odborář.
Last year, Škoda Auto delivered over a million cars worldwide. It operates three production plants in the Czech Republic, manufactures in China, Russia, Slovakia and India, mostly through group partnerships, as well as in Ukraine and Kazakhstan in cooperation with local partners. It operates in more than one hundred markets. The number of cars that are ready to be completed has been between thirty and fifty thousand in the long run.
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