JSC AVTOVAZ held company employer conference to wrap-up results of the Collective Agreement implementation within half-year 2015 and lay-down further work plans and task. Conference gathered 657 representatives of all plant’s divisions and productions, subsidiaries, managers, Mayor Office of Togliatti, City Duma and Regional Duma delegates.
Production and finance situation of I half-year was tense. Primarily because of external economic factors deterioration like growing foreign exchange rates and reduction of demand for cars. Fall of car sales on the Russian automotive market made 34% (LADA sales reduced by 27%).
In his speech at conference, President of JSC AVTOVAZ Bo Inge Andersson emphasized that situation on the Russian market remains extremely complex, and company stability depend on each employee. “We must be profitable in order to invest in our future. Our future is new models LADA Vesta and LADA XRAY, which we will release this year with target quality and European-level characteristics. We must work on our brand image, since our brand enters league of global competitors” – Mr. Andersson said.
In order to overcome negative economic factors, JSC AVTOVAZ implements anti-crisis plan that includes implementation of 220 initiatives covering all company’s functional scopes. At the same time, Timur Butov, VP for HR and Social Policy remarked, “financing volume of costs related to implementation of activities and liabilities of the Collective agreements was according to the plan. Over 730 M rubles were allocated for this purpose. Company allocated total 2.2. B rubles for social programs in 2015.
In a view of unstable situation in Russian economy, salaries and vacation pays for JSC AVTOVAZ employees were paid in full and on time. Besides, in order to increase social security, tariff rates and salaries of all company employees except management were increased by 6%. With this increase average salary of company employee increased by 8.4% within June 2015 comparing with June 2014.
Sergey Zaitsev, Primary Trade Union Organization Chairman, presented trade union report. He emphasized that “…in a view of current situation, trade union payed special attention to observance of Employment Agreement. According to previously achieved agreements, no mass blue collar reductions were done in this year. Trade union initiative led to an agreement with employer on applying scheme for dismissing white collars by agreement of the parties and compensation amounting to 4 average monthly salaries.”
