Russia’s AvtoVAZ resumes incentives for quitting jobs

MOSCOW, Jun 2 (PRIME) -- Russian car producer AvtoVAZ will to pay five average monthly wages to an employee for signing resignation within 15 days, if the resignation is approved, Trade Union Chairman Sergei Zaitsev told PRIME on Thursday.

“There is already an order, it was issued in the last days of May and is in force from June 1 till June 15. An employee will receive five average wages when resigning upon mutual agreement with the company,” Zaitsev said.

AvtoVAZ said in February that its net loss nearly tripled to 73.851 billion rubles in 2015. State-owned industrial corporation Rostec, whose joint venture with the Renault-Nissan alliance holds 74.5% in AvtoVAZ, said then it planned to take measures to bailout the company.

AvtoVAZ started cutting staff cuts in February 2014 and around 6,000 people were dismissed during a year. In 2015, the company announced plans to lay off no more than 1,100 people due to lower sales and reduced costs.

Previous head of the company, Bo Andersson, resigned in February and was replaced by Nicolas Maure, who said that the company has no plans to continue job cuts.

(66.6156 rubles – U.S. $1)

End