The general manager at the Renault-owned car producer Dacia, Francois Fourmont, announced on Monday that the company will not only cease production for two more weeks, but will also close 300 labor contracts that had predetermined employment terms. All 300 contracts expire this month and will not be renewed.
The 300 employees add up to the 620 employees who saw their contracts expiring at the end of December.
"The decisions regarding the production schedule are taken for periods of one month maximum, because of the incertitude on the market. the ticket restaurant bonuses will not be given this month either", said Fourmont.
Dacia announced on Monday that the production will be suspended between January 26 and February 8, because of the dramatic fall of the car market.
Employees staying at home will receive 85% of their wage.
The Dacia employees were also left at home for almost a month, during the last quarter of 2008, because of the low demand of vehicles. After reopening the production on Monday, Dacia slowed down the production pace, from 1,360 to 1,085 units per day.