By: G. B.
We have already reported that many companies are shutting down operations due to an unpromising environment with high taxes and energy prices driving them away. The ruling authorities continue to make statements, hoping that ordinary people will believe their claims that these closures are the result of global trends. However, it is difficult to explain why such justifications are being made, especially when parts of production are being relocated to Bosnia and Herzegovina and Hungary.
It seems that Matjaž Han, the Minister of the Economy and current president of the Social Democrats, has joined the ranks of the creators of “the emperor’s new clothes”, as he visited the Mahle company today. According to him, the announced layoffs at Mahle are not due to the Slovenian economic environment but rather to the conditions in the European automotive industry. Han also employed the popular term “timeline”, frequently used by Prime Minister Golob, stating that the minister, trade unions, and company management agreed to regular mutual updates about the situation, with Han particularly emphasising the timeline for layoffs.
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In a statement to the media at the company’s headquarters in Šempeter pri Gorici, Han sought clarification from management about what exactly in the Slovenian economic environment was responsible for the announced layoffs. He noted that warnings have been heard from the business sector that the expected layoffs would also be attributed to the government’s unfavourable economic policies. “There was no answer,” he stated. The difficulties stem from tightened conditions in the entire European automotive market, which is facing the consequences of a shortage of orders and a slow adaptation to electrification.
He viewed the company’s leadership’s announcement that the Šempeter facility would remain operational, continuing its development activities and being considered a promising site by its owners, as encouraging. “However, the entire group is preparing for further development,” he said, which, according to him, also includes layoffs. The ministry will maintain daily contact with the trade unions at Mahle and the company’s management, he announced. “It is essential that no final decision is made until an agreement is reached,” he emphasised, highlighting the timeline for layoffs as particularly important. He intends to inform the government about the situation and plans to work with his team to determine how the state can act within 20 days.
Production to be relocated to Hungary and Bosnia and Herzegovina
According to Mojca Plešnar, chairwoman of the workers’ council at Mahle Electronic Drives in Šempeter, they had expected concrete proposals from the minister’s visit, but although they received more of a commitment to negotiate and await proposals from the workers’ side, she felt it was nice to at least have a glimmer of optimism. Plešnar hopes that the visit will yield at least some positive outcomes, and the minister has promised to involve other relevant ministries in the search for solutions. The workers’ council desires solutions that satisfy both workers and company management. The common goal must be for the company to remain and have a future, Plešnar said. One of the proposed measures is, according to her, a transition to a 36-hour workweek.
In the company, they are still far from a list of surplus workers being developed in agreement with the union, Plešnar continued. The picture is clear regarding layoffs in production, but not yet for other positions. According to Plešnar, there is not much foreign labour left in the company, nor are there many agency workers or fixed-term employees, as these lost their jobs after the company announced a reduction of 170 employees in the spring.
So, while this is now the second wave of layoffs this year, Plešnar remains optimistic that the facility in Šempeter will survive, at least its development part and certain segments of production. She assesses the relations with management as constructive, and despite the negative atmosphere caused by the news on Friday, they have slowly adjusted to it, resulting in little excessive unrest. Plešnar hopes that the trend of layoffs will not spread too much throughout the economy, allowing unemployment to remain low and demand for workers to be strong. This would make it easier for laid-off workers to find new employment.
Mahle announced on Thursday that it plans to eliminate 340 jobs next year as part of its “organisational structure optimisation” aimed at increasing efficiency, and 270 jobs due to the relocation of part of the production (alternators and e-compressors) to Bosnia and Herzegovina and Hungary. They attribute this measure to weak demand in Europe.
Golob is concerned because it involves a company from “his” electoral district
Prime Minister Robert Golob expressed concern following this announcement on Friday, stating that it involves a company of significant importance for the Goriška region. He expects Han to implement measures to prevent further job cuts in the company and to stimulate the creation of new jobs in the region.
Today, the Prime Minister’s cabinet announced via the social media platform X that Golob has called a meeting with representatives of the Slovenian automotive industry for this Friday. The discussion will focus on “an analysis of the current situation and the challenges affecting the future of the Slovenian automotive sector.”
