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AvtoVAZ to Trim Worker Pay 20%
Russia’s largest carmaker, OAO AvtoVAZ, plans to shift its entire workforce to a four-day work week on Feb. 15, The Moscow Times reports.
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Russia’s largest carmaker, OAO AvtoVAZ, plans to shift its entire workforce to a four-day work week on Feb. 15, The Moscow Times reports.
The move will reduce worker pay by about 20% but avoid layoffs for the company, which is controlled by the Renault-Nissan Alliance. Last year AvtoVAZ’s sales of Lada cars plunged 31% to 269,100 units, according to the Moscow-based Assn. of European Businesses. The decline followed a 15% drop in 2014.
Economic sanctions and plummeting oil prices caused the Russian car and light commercial vehicle market to shrink 36% to 1.60 million units last year. AEB predicts this year’s market will drop to 1.53 million vehicles.
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