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“Volvo Factory in Wrocław: Agreement Reached on Severance Payments and Transition to New Ownership”

In mid-March, the process of shutting down production at the Volvo factory at Mydlana Street in Wrocław began. On May 18, the employees met with the management to obtain information on severance payments and the rules of transition to the Vargas Holding group that is taking over the site. The agreement was signed on the same day.

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Thursday’s meeting in front of the factory gathered several hundred people. In March they were notified that Volvo Buses would soon cease to exist. The production of bodies for buses and coaches will end in the first quarter of 2024, although some production lines will be stopped earlier.

– We have many ideas for the severance check for employees who end their long-term employment at Volvo Buses. We figured the extra money would be useful to everyone, so we decided to guarantee the same amount for everyone. Whether you worked as fitters, managers, leaders or logistics workers, Volvo management announced on May 18.

About 1,500 people are employed in the plant. For two months, they wondered what fate awaits them and whether they have to change their situation in the near future. On Thursday, we informed about the preliminary meeting, and today we already know that there was an agreement between the two parties.

– In connection with the previously announced decision to stop the production of Volvo buses in Wrocław, we would like to inform you that on May 18, 2023, an agreement was signed between Volvo Polska Sp. z o. o. and the Inter-Enterprise Trade Union Organization NSZZ “Solidarity” of Employees of Volvo Polska Sp. z o. o. – Anna Nojszewska, Communications Director at Volvo Buses, told “Gazeta Wrocławska”.

The agreement concerns the financial conditions of the social package for employees who will be affected by the reduction of employment related to the end of bus production in Wrocław.

As part of the above agreement, Volvo Buses will pay severance pay to employees under the Act on special rules for terminating employment relationships with employees for reasons not attributable to employees. In addition, they will receive severance pay, the amount of which depends on the length of service in the company.

– It will amount to PLN 3,600 gross for each full year of employment with the employer – adds Anna Nojszewska.

The amount is therefore no different from the first management proposal.

Production will be phased out in 2023, although at the same time a new investor will gradually take over part of the factory.

A letter of intent has already been signed between Volvo and Vargas Holding, in which the new investor confirmed its intention to employ some employees.

– At the same time, the employer takes active measures aimed at supporting employees in their search for employment opportunities in new jobs – points out Anna Nojszewska.

The Volvo Group Digital & IT, Volvo Group Financial Control and Accounting, Volvo Group Trucks Operations, Group Truck Purchasing, Volvo Group Real Estate, Volvo Group People Services and Volvo Construction Equipment departments will continue to operate in the capital of Lower Silesia, remaining the global service delivery center for the concern Volvo.

The first information about the closure of the factory appeared in March. We were there with our camera at the time:

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2023-05-19 14:25:12
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