Samsung may shut down production plants in Slovakia
Samsung might be the first major company to exit Slovakia due to the tense situation in the Slovak labor market. Employers have long been concerned about the lack of workers and this has forced Samsung to consider the possibility of shutting down its plants in the country and more production elsewhere.
According to a local news report, Samsung is thinking about closing production lines in Slovakia as one of its options to deal with the matter. It’s also said to be negotiating the possibility of streamlining the procedures involved in hiring foreigners with the government. This would make it easier for Samsung to continue its business in the country.
Shutting down production in Slovakia
The report mentions that Samsung is initially thinking about shutting down one of its two plants in Slovakia. It’s unclear, though, whether this is a mere threat to put pressure on the country or if it’s seriously thinking about doing this.
While Samsung has rejected reports that it’s thinking about relocation, it hasn’t ruled out limiting production or moving a part of it abroad. Samsung employs more than 2,000 workers combined in the two plants. It makes parts for LCD panels in one of the plants and assembles the screens in the other.
Samsung isn’t the only company that’s irked by the constantly changing legislation and increasing labor costs in Slovakia. Some German companies have also started threatening shutdowns and plant re-locations over higher overtime payments for weekend and night shifts.Source