The average number of employees has fallen by 15% in Avtovaz in a year

The average number of employees has fallen by 15% in Avtovaz in a year

Finmarket – The average staff number at Avtovaz amounts to 43,224 people as of the end of September 2016, which indicates a 15.2% year-on-year decline, according to the company’s quarterly report.

The accrued wages fund has shrunk by 14.6% year-on-year by the end of the January-September period to 12.378 billion rubles and the social payments amounted to 591 million rubles, down from last year’s 660 million rubles.

The average number of workers had also fallen by 15% last year in comparison with 2014, to 50,988 people. The yearly decline in the accrued wages fund was 10.3% to 14.499 billion rubles and the social payments shrank to 660 million rubles from the previous year’s 1.412 billion rubles.

Previously, the company operated the order of dismissal of employees by mutual agreement. Avtovaz has also reduced the number of staff by laying off pensioners and people who violate labour discipline.

As explained by a company representative to Interfax, the reduction in the number of staff is due to natural attrition and employee turnover and the company continues employing specialists as before, whose recruitment is discussed individually. The representative has added that currently a pension co-financing programme is being implemented at Avtoovaz for the duration of 5 years, in the case of voluntary retirement.

As stated by the company press office, as of the beginning of October, there are 2700 employees at preretirement age and 2600 pensioners at Avtovaz.

The company has shifted to 4-days-a-week working regime as of 17 October, due to the ongoing market shrinkage. The new regime is expected to continue until 19 February 2017.