TOGLIATTI, September 25 (RIA Novosti) - Plans at Russia's largest carmaker AvtoVAZ to cut its workforce to around 75,000 will probably go ahead in January-February 2010, the head of the company's trade union said on Friday.
AvtoVAZ said on Thursday it was planning to lay off 27,600 employees, mainly those above the retirement age, bringing its total workforce down to around 75,000.
"The decree about the layoffs, which were announced on Thursday, has yet to be signed. It is likely to be signed after September 29, following the board of directors' meeting," Nikolai Karagin said, adding that the layoff plan would also be agreed with the government.
The cuts will affect 13,000 workers over the retirement age, 5,500-6,000 of pre-retirement age and 7,000 other employees. According to the AvtoVAZ trade union, the company currently has a workforce of 102,000 employees, including 12,000-14,000 above the retirement age.
A source close to the plant's management said that layoffs are likely to continue.
The car producer, known for its Lada brand, was earlier reported to have plans in place to gradually reduce its workforce by 36,000. The company, based in Togliatti in the Volga region, dominates the city's economy, and is by far the largest local employer.
Russian Health and Social Development Ministry said it had not received a layoff notification from the plant's management.
The trade union chief also said the plant would re-introduce a full working week from December 1, two weeks earlier than it had been initially planned.
"We have already received the endorsement, the decree will be signed in the next few days," Karagin said.
AvtoVAZ has a production capacity of over 800,000 vehicles annually. It has made more than 25 million Lada cars and auto components since it was established in 1970, as a joint project with Italian carmaker Fiat. The company currently produces 15 Lada models priced between 150,000 rubles ($4,800) and 350,000 rubles ($11,240).
However, the company recently saw record losses of 14.2 billion rubles ($447 million) in January-June 2009 against net profits of 1.49 billion rubles ($47 million) in the same period of 2008.
