AvtoVAZ offers $3,000 buyout to some employees

MOSCOW — Russia’s biggest carmaker, AvtoVAZ, which suspended some production due to sanctions and a lack of components, is offering workers at its Izhevsk plant a one-time payment of about $3,000 to take voluntary redundancies.

AvtoVAZ resumed production of some of its popular Lada models at its main plant in Togliatti in June after halting production in the spring partly due to a lack of electronic parts due to restrictions.

The company, whose longtime majority shareholder Renault Group sold its stake to a Russian investor in May, was unable to resume production of the Lada Vesta model and sold 3,200 from its Izhevsk plant in central Russia on paid leave in March. sent employees.

On Wednesday, it asked workers at the site in Izhevsk, a city of about 645,000 people about 1,200 km (746 miles) east of Moscow, to either find a new job within the company or to resign by mutual agreement. .

Those who resign will be offered a lump sum payment of about five to seven times the average monthly salary or about 12 times the state-approved minimum wage. The maximum payout will be equal to 183,348 rubles ($3,161).

“AvtoVAZ emphasizes that the company does not plan to conduct large-scale layoffs, and that the supportive measures proposed for the team are purely voluntary for each employee,” the company said in a statement.

See also  Ford unveils 2023 Maverick Tremor off-road package for better off-road driving