GAZ Group may shift to a four-day work week

GAZ Group may shift to a four-day work week


RNS.- GAZ Group has given notice to its employees about a possible shift to a four-day work week, as of the end of October to 20 April 2020, as told by the company.

“According to the agreement with the trade union committee, the entire staff of the company has been notified about a possible shift to a four-day work week, between 21 October 2019 – 20 April 2020” – the company reported.

The deterioration of the situation in the commercial transport market, due to negative macroeconomic factors and the reduction in the production of GAZ Group as a result of the US sanctions have been shown as the reasons behind the measures by the company. The transition to part-time week will help avoid staff cuts in the enterprise, and ensure a stable workload.

The company has stated that in the event of a market stabilisation, such measures will not be taken and the operations will continue normally.

The LCV market has shrunk by 8% by the end of the first 7 months of 2019, which may lead to a 15% annual shrinkage, as highlighted by the company. High interest rates on loans, reduction in federal programs to stimulate demand and in investment in fixed assets, and the completion of large federal construction projects, which have a negative effect on purchasing power have been shown as the factors, influencing the situation by GAZ.

GAZ Group has been in the sanctions list of the US Ministry of Finance since April 2018, together with other companies controlled by the businessman Oleg Deripaska. Following Deripaska’s withdrawal from the control of the companies, the US Ministry of Finance has excluded En+ Group and its affiliate Rusal from the sanctions list. The Ministry postponed the implementation of sanctions on GAZ for the last time, until 8 November 2019.