Skoda Auto production line

William Malcolm

Skoda Halts Production For Two Weeks Due To Chip Shortage

From today, Škoda Auto will completely stop production in all three domestic plants for the next two weeks, with the exception of one line in the plants in Kvasiny in the Rychnov region. During this shutdown, the company wants to complete 10,000 disassembled cars, Tomáš Kotera, head of communications at Škoda Auto, told ČTK. The reason for the decline in production is the lack of chips.

“During this shutdown, we will focus on completing approximately 10,000 cars in progress, which we will be able to deliver to our customers more quickly. The planned annual inventory of packaging and packaging will also take place on Friday, October 22,” Kotera said.

“Our highest priority is and will remain the long-term provision of jobs and the corresponding amount of compensation of our employees’ wages,” said Kotera. According to the unions, wage compensation thus roughly corresponds to daily earnings.

Agency employees also receive wage compensation. “Škoda Auto, in cooperation with the social partner, treats agency employees in the same way as regular employees, which means that they have the same compensation. We will discuss the next steps with the user and in close cooperation with trade unions,” .

Kotera expects semiconductor supplies to stabilize again in the second half of 2022. The whole supply situation should then calm down.

Škoda Auto has previously stated that due to the lack of chips, it will significantly reduce or stop the production of new cars. It will focus on the completion of broken cars, the number of which has long ranged between 30,000 and 50,000.

Last year, Škoda Auto delivered over a million cars worldwide. It operates three production plants in the Czech Republic, produces in China, Russia, Slovakia and India, mostly through group partnerships, as well as in Ukraine and Kazakhstan in cooperation with local partners. It is active in more than 100 markets.

Povšík: Škoda employees are at home for 80 percent of their salary

Employees of Škoda Auto, which significantly reduces production, no longer stay at home for 85, but for 80 percent of the average salary, which includes, for example, extraordinary annual bonuses. Wage compensation thus roughly corresponds to daily earnings, said Jaroslav Povšík, chairman of the corporate council and union leader at Radiožurnál, today. As of today, the carmaker has stopped production for two weeks, except for one line in Kvasiny. During that time, it will finish about 10,000 cars. A significant reduction in production will probably last until the end of the year. The reason is the lack of chips that are used in on-board electronics.

“Employees receive 80 percent of their average earnings, which basically plus or minus covers their daily salary,” Povšík said. He added that the production of rear door windows is mainly missing for the production, there are also problems with chips for radios.

In the next two weeks, production will cost, with some exceptions, in all domestic plants of Škoda Auto, produced by only one line in Kvasiny. According to Povšík, the situation with chips should improve, as the coronavirus situation in supplier countries, especially in Asia, is improving. “The overall situation in chips probably will not allow us next year, certainly not in the first half of the year, full or above-standard production,” said Povšík.

According to him, more and more devices need chips, but Asian markets have priority. “I think it will be a long-term problem that will have to be solved with new capacities, new factories must be built, I don’t know if Europe can do it,” Povšík said.

Škoda employees can earn extra money elsewhere during the outage without restrictions

Škoda Auto employees can earn extra money from other employers during a production shutdown without any restrictions. The Labor Code allows them to do so. However, when the employer calls them back to work, it is necessary to return, Richard Kolibač, a spokesman for the State Office of Labor Inspection, told ČTK.

“An employee can earn extra money from another employer, because the Labor Code does not limit this employee in any way, ie the employee can have several employment relationships or agreements on work performed outside the employment relationship at one time,” said Kolibač.

There are no limits for the scope of work or for the amount of extra income. The limits would only apply in cases where the employee had to earn extra money from the same employer. “However, it is necessary to take into account that the restriction of work for an employer with whom the employee is at work, may end at any time and then it is necessary to return to work in full (or agreed),” the spokesman said.

According to Kolibač, the employer maintains the employee by paying wage compensation. “Despite the fact that the employee does not come to work at the moment, it is necessary to perceive that the employer continues to count on him and this leave compensates for 80 percent of earnings,” said Kolibač.