Martin machinists looking for ways to handle crisis

The company was pushed into this due to the deepening financial and economic crisis, which has substantially impacted the machining industry. In the case of Viena International, which exports 95% of its production, the potential negative effect of the crisis is even more real. The company is, however, as well prepared as it can be to get through, and takes this crisis also as a challenge.

The company is attempting to reduce the social impact of the layoffs on employees. Thus, staff will leave the company first who are eligible for retirement pension or early retirement. Where the company employs married couples, only one of the two will be considered for redundancy. “All management steps in this direction were pre-negotiated with the company’s union as well. Ultimately, we offered some staff the option of requalification and redeployment to a different position within the company. We have already assisted some in finding work with other firms in the Turiec region. This also comes thanks to our active collaboration with the Labour Office in Martin and to our attempts to find alternate solutions for staff. Further, we have provided the professional assistance of a psychologist to those interested. In taking these steps, of course, we are also abiding by all legislative provisions bearing on workforce reduction,” says Milan Kapusta, Viena International’s General Manager.

“The company will also remain in contact with staff who leave the plant. In the event that the trend in our industry takes another direction and the company is once again able and ready to utilise the services of laid-off staff members, we will seek to re-employ them,” notes Eduard Šustr, the company’s Executive Director.

Viena International is specialised primarily in the manufacture of stamping machines which it supplies to the automotive and consumer electronics industries, segments which recorded falling demand right at the start. The general economic situation in world markets in both industry sectors evoked a feeling of uncertainty and as a consequence in some cases also resulted in cancellations of already-negotiated orders. This was the trend especially in the second half of 2008. “The culmination of this process is a decision to correct and optimise our resources and capacities in order to make ourselves able to continue in production in future periods following the rectification of expense items which exceed our present capabilities,” Šustr says.

Over the past four years, Viena International invested SKK 400 million in its development. The investments in equipment and technology at Viena International are at a level which contemplates successfully overcoming the crisis period, assuming that demand once again rises. Large parts of the long-term investments went to new European-standard CNC technologies (Viena International put four new systems into operation this year) which will help remaining employees at the firm weather the crisis period. Toward achievement of this goal, the company also plans to strengthen conditions in its commercial division.

Viena International also used part of the investment to train new staff, and thus to its collaborations with the Unified School in Martin and Žilina University added also a collaboration with the Industrial High School in Martin, to which it delivered two CNC machining stations a month ago. The company’s aim is to continue this collaboration into the future.

At present the company is in relatively good condition, ready to look for new markets, improve manufacturing efficiency and thus pass through the current crisis period as painlessly as possible. “Besides the best technical equipment, our firm has healthy finances. To date we have paid all of our bills on time, and since the inception of the company we have also always held to our employees’ paydays,” Šustr added.