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"Tofaş" lays off 800 workers due to low demand in Europe

Türkiye Materials 5 January 2013 09:20 (UTC +04:00)

Turkish local automotive manufacturer "Tofaş", which produces cars in partnership with Italian auto giant Fiat, announced on Thursday that it has not renewed agreements with 800 workers whose contracts ended on Dec. 31 as a result of low demand Today`s Zaman reported.

The announcement came after Tofaş's recent explanatory statement made to the Public Disclosure Platform (KAP) regarding the issue said that the low demand for exports to European markets seen in 2012 is forecasted to continue in 2013 and the company will continue production under a double shift system as of Jan. 7.

Tofaş provided detailed information on the number of workers whose contracts ended and said that 1,000 contracted workers were hired in 2011 due to unexpected demand at the time. The statement said 800 of those workers will not be resigned at this time, but if demand increases, they will be given priority for jobs at the company.

Tofaş, which has 6,000 workers and produces 400,000 cars annually, has seen a decline in production of 50,000 cars in the last year as a result of reduced demand in France, Italy and Greece. The company, which has orders to produce 230,000 cars so far in 2013, decided not to renew the contracts, and elected to release those workers who have not yet completed their military service. The company notified the workers by telephone.

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