Jelcz lays off 35% of personnel in bid to save company

Bus maker Zaklady Samochodowe Jelcz, a subsidiary of the Zasada group, yesterday said it plans to cut 581 out of 1,643 jobs by the end of April, a cost cutting measure affecting 35% of its employees. Jelcz executives said the move comes as a result of lower demand for its busses, due in part by tough domestic competition and lax used-vehicle import rules. "We have to lay-off these people in order to save the company,” said Zasada board chairman Franciszek Gaik. Jelcz’s trade unions have contested the decision, which was preceded by the dismissal of company head Krzysztof Rozanberg amid a failed attempt to restructure the embattled bus producer. Insiders speculate that at least part of those losing their jobs could be employed in the nearby Walbrzyska Special Economic Zone (SSE), which the government is considering expanding in the future. Separately, Tychy-based car body parts producer Delfo announced that 310 of its 1,360-strong work force would have to go, citing a rapid decline in orders for its products from its main contractor Fiat Auto Poland. (Rzeczpospolita, p.B3, Prawo i Gospodarka, pp.1,3)J.K.