Cimos to close factory in Secanj – Workers offered EUR 150 per year of service

The workers of FAM Secanj, part of Livnica Kikinda, that is, the Slovenian car component manufacturer Cimos, have been sent on a departmental leave and will not return to their jobs.

The Cimos Group notified the management of FAM that it would start closing the Secanj factory on August 1, as part of the restructuring in all the regions.

– The closing down of certain companies or parts of companies, one of which is FAM, should contribute to the strengthening of the group, creating long-term security of the remaining employees' jobs and creating conditions for the beginning of Cimos' recovery – the Kopar headquarters announced and noted that they would adhere to the Serbian laws and provide the workers with severance payments.

The former Slovenian car component giant has been experiencing financial trouble for a long time now. It was rescued out of bankruptcy by an Italian fund which took over the ownership and management last summer, as well as the obligation to repay EUR 110 million worth of debts. The new owner of Cimos has started the restructuring process, and the most prominent industrial facility in Secanj has found itself among the factories to be closed down.

The news has not surprised the 130 employees at FAM, who are well informed of the difficult situation Cimos is in. They still hoped, however, that the crisis would not impact them. Following the departmental leave, everybody will be laid off, and Cimos has promised that it will help them find new jobs.

– We have started negotiating with the employer, which is providing EUR 150 per year of service for surplus workers. They are also offering employments to a half of the workers, more precisely 62 of them, in other facilities of the company. We demand severance payments in the amount of 20% above those prescribed by the law – Vince Borbelj, vice president of the FAM union, says for Novosti and announces that the negotiations will continue on Friday, August 4.

Kikinda

The management is offering jobs for 20 workers in the Kikinda facility (under terms equal to those in Secanj), as well as jobs in Cimos' facility in the Croatian town of Buzet for 42 workers. Along with a daily wage of EUR 32, the workers will be provided with paid-for accommodation and food, as well as a return ticket to their place of residence each two months.

Fam Sečanj

Cimos d.d. Kopar

Cimos

FAM

production of car parts

Vince Borbelj

closing of Cimos factory in Secanj

Livnica Kikinda

car components

automotive industry