Russian leading producers of rolling stock continue massive cuts of workers
Published: Fri, 2015-03-27 16:43Leading Russian producers of rolling stock continue massive cuts of their workers, due to unfavourable business environment in Russia. For example, Tver Carriage Works, which is part of Transmasholding, has faced with a serious under-utilization of its capacities in recent weeks, which resulted in the suspension of production for about a month.
At present the company has only one contract, signed with RZD, which involves the construction of 15 two-storey cars and 10 coaches, which is, however, significantly lower the plant’s design capacity, which is estimated at 1200 cars per year.
As a result, the company has announced its plans to cut 30% of its employees. As part of these plans, about 2000 workers of the plant will be fired during the period from May 12 to June 1 of the current year.
Tver Carriage Works is not the only Russia’s producer of rolling stock, which experiences financial difficulties at present.
In early February, the suspension of operations, due to the lack of existing contracts, was reported by Novocherkassk Electric Locomotive Plant (NEVZ), while Uralvagonzavod (DC), another Russian leading producer of rolling stock, announced the reduction of 5,000 employees at its Chelyabinsk Tractor Plant subsidiary.