Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Embraco is a major employer in less developed eastern Slovakia that manufactures compressors for refrigeration systems and condensing units. It is currently owned by Nidec Global Appliance a subsidiary of Nidec Corporation, originating in Japan. The company has announced to cut 270 jobs. It is not clear which positions will be involved. Embraco operates in Spisska Nova Ves, in the broader Kosice region.
The company faces a reduction in goods ordered, inflation of the price of materials and an increased cost of transport relative to Asian competitors. The slump in demand is also due to the Russian invasion of Ukraine, as well as all the economic sanctions. Dismissals will start at the end of October and continue until the end of the year.
Employee Union OZ Kovo announced that they reached an agreement with the employer, ensuring that if married couples are both employed by Embraco, only one will be let go. Further, where possible, employees who are near retirement and single parents will not be let go.
In July 2022, Embraco increased salaries on average by 4 % and started versatility and flexibility projects for employees in manufacturing. If current productivity cannot be increased in the medium-term, Embraco states that further job cuts and 'shutdowns' may be made.
Embraco operates in Spisska Nova Ves, in the broader Kosice region. It currently employs 1,750 in Slovakia.
A former internal restructuring was recorded in the ERM database in 2020 (Embraco-2020-SK).
Eurofound (2022), Embraco, Internal restructuring in Slovakia, factsheet number 107518, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/107518.
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