FŁT in Kraśnik is cutting employment. Group layoffs will affect up to 350 people

Layoffs at automotive parts manufacturers TVN Turbo

The Rolling Bearings Factory in Kraśnik is initiating a series of layoffs. Initially, this will affect around 100 employees, with a potential total of 350 later on. „We face intense competition from suppliers outside the European Union, where energy, labor, and administrative expenses are significantly lower,” stated Andrzej Zbróg, the HR Director.

„We are unable to cope with the current energy prices and the restrictions imposed by the broadly interpreted Green Deal. The automotive sector, which is transitioning towards electromobility, is utilizing fewer of the components we provide. We need to adjust our structure to meet current demands, and this is not solely about employment structure,” remarked Andrzej Zbróg, human resources management director at FŁT, on Thursday.

Krzysztof Grzegorczyk, Director of the District Labour Office in Kraśnik, announced that the office has received a notification regarding planned collective layoffs involving 110 employees. The Rolling Bearing Factory in Kraśnik makes up nearly 10.5 percent of the total workforce.

The majority of those scheduled for layoffs—90 individuals—are directly involved in production. As per the information received by the office from the employer, around 40 of the employees earmarked for layoffs are eligible for pre-retirement benefits or retirement pensions.

Zbróg reported that as of January, the factory employed a total of 1,066 individuals. The management has estimated that the group layoffs might encompass as many as 350 employees. Initially, the plan was to lay off 120 people, but following negotiations with the social side, this figure was reduced to 110. After further discussions with trade unions, 81 individuals were issued layoff notices.

Ongoing cost optimization

The factory representative highlighted that the company is actively working to ensure that the final number of layoffs is lower than anticipated. „The situation is fluid. We are exploring solutions, transferring employees between departments, seeking new clients, and identifying new markets for our products, as well as new specializations for our plant, so that we can minimize job losses,” he stated.

He elaborated that the factory is currently in a challenging position, having experienced a drop in demand for FŁT products during the pandemic, partly due to disrupted supply chains. „We are facing significant competition from suppliers outside the European Union, where energy, labor, and administrative costs are lower. Our product quality is well-regarded by customers, and if we can optimize our production to reduce costs, it seems likely we could even boost sales,” added Andrzej Zbróg.

The FŁT representative assured that the management is striving to enhance the company’s operations in every feasible area, including through cost-saving measures, optimizing energy expenses and production efficiency, implementing a new remuneration system, as well as seeking new contractors and innovative solutions.

Support following mass layoffs

According to the director of the employment office in Kraśnik, there are already employers interested in hiring some of the laid-off individuals, including a company that produces metal components for windmills and turbines. He also noted that Mesko, an ammunition manufacturer in Kraśnik, which operates on land acquired from FŁT, is also expanding its workforce.

In light of the layoffs at FŁT, the employment office in Kraśnik has reached out to the Ministry of Family, Labor and Social Policy, requesting additional funding for retraining laid-off employees and facilitating their reintegration into the job market. Grzegorczyk mentioned that there is a demand for various roles, including welders, drivers, and construction workers.

„The situation may not be entirely hopeless, but it is also not ideal, as Kraśnik County is experiencing unemployment rates exceeding 10 percent. This contrasts with Lublin Province, where the rate is 8 percent, and the national average, which is 5 percent, making us one of the counties with high unemployment,” added the labor office director.

Poland’s oldest factory of its kind

The Rolling Bearing Factory in Kraśnik is recognized as the oldest of its kind in Poland, with bearing production commencing in 1948. The facility manufactures ball, tapered, and cylindrical bearings. To date, the factory has produced over a billion bearings, primarily for manufacturers in the trucking, passenger vehicle, agricultural, metallurgical, mining, electric motor, forklift, reducer, gearmotor, and defense sectors.

Since the 1990s, the factory has undergone a restructuring process, with ownership changes occurring. In 2013, the majority stake was acquired by ZXY Luxembourg Investment, part of the Chinese automotive and machinery conglomerate Tri Ring Group Corporation.

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