American Company Lear, which Took EUR40 Mil in Subsidies, Now Leaves 2,500 Workers Jobless

Novi Sad (BETAPHOTO/DRAGAN GOJIC/EV)

Some 2,500 workers had been left jobless in Novi Sad, after a local plant, operating as part of American company Lear Corporation had suspended production amid the war in Ukraine, portal Nova.rs. reported on March 22.

The company management has addressed the workforce in a letter saying that “the sanctions have caused a break in the chain of supply, which have also caused problems in the automotive industry in terms of the procurement of semiconductor devices and unfortunately, no one at this moment can with certainty say when the problem will be resolved.”

The status of the workers, whose collective contract expires at the end of this year, is not officially clear neither is the status of their salaries.

Company Lear, which manufactures automotive electrical systems, had received EUR40 million in subsidies to build a production plant, the portal recalled, noting that Serbia was to get a partial return on the awarded subsidies through the plant lease in some 40 years. Lear is one of foreign companies which has received highest subsidies from the state and local self-governments.