75% of "Fortus" Iaşi employees will get furlough in shifts

Iaşi-based heavy machinery maker "Fortus" Iaşi, only works with around 350 out of its 1200 employees, according to statements by union leader Dumitru Mihăiliuc.

"This measure will be effective between December 14th - January 18th, in order to lower expenses, and concerns all of the company"s staff, apart from those working in production which have urgent orders to honor", Mihăiliuc said.

As an additional cost-cutting measure, the managers of "Fortus" have decided that, in the beginning of 2010, each employee will get a 10-day leave, of which 5 days of unpaid leave

"This is the better alternative to laying off staff. So far the issue of layoffs has not occurred", Dumitru Mihăiliuc added.

Due to its financial difficulties, the company last year laid off 300 workers out of a number of 1,537 workers, with the layoffs affecting mostly technical and administrative staff. The workers that have been laid off will receive one monthly wage for every they have worked in the company. Following the layoffs, the company could save about 500,000 lei a month.

"Fortus" Iaşi, which produced its first batch of steel in 1978, and it remains the only industrial platform in Romania with an integrated technological process and a unified management, which by the flexibility of its manufacturing process, manufactures equipment for various industries: mining, energy, metallurgy, cement, food, shipbuilding and others.

"Fortus" Iaşi entered bankruptcy proceedings, due to its huge debts towards the state budget and its suppliers.