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Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure SK-2020-8/1512 Updated – measures in Slovakia

Agreement on maintenance of employment in Continental Matador Company

Dohoda o udržaní zamestnanosti v Continental Matador

Country Slovakia , applies locally

    • – SK022 Trenčiansky kraj
Time period Open ended, started on 20 February 2020
Context COVID-19
Type Bipartite collective agreements
Category Employment protection and retention
– Income support for people in employment (e.g., short-time work)
Author Ludovit Cziria (IVPR) and Eurofound
Measure added 30 November 2020 (updated 12 May 2021)

Background information

To minimize the effects of the first wave of COVID-19 pandemic on the citizens, the government temporarily closed some facilities, including shops and show rooms in mid-March 2020. To protect the health of employees, also some companies temporary stopped their operation. Pandemic significantly impacted the production of the automotive sector in Slovakia as well as abroad, where the country exports the most of produced cars and some of their components.

Content of measure

Among companies which responded to this development, the German producer of personal car tyres, Continental Matador Company in Puchov, can be mentioned. To respond to drop in sales as well as to potential threat of employees' health by the COVID-19 disease, company management negotiated with the local trade unions on practical implementation of short-time working. Social partners agreed on Supplement to the company collective agreement specifying conditions of its implementation in the company. Short-time working was implemented, for instance, from 19 March to 5 April 2020, when the production in the company was interrupted. To compensate the missing income of redundant employees, the company implemented one of the measures included in the First aid package adopted by the government in relation to COVID-19 disease. Specifically, Wage support to companies, reported in the COVID-19 PolicyWatch database, reference number SK-2020-17/871 .

Updates

The following updates to this measure have been made after it came into effect.

05 May 2021

The original agreement expired by 31 May 2020. But due to continuing COVID-19 pandemic and its impacts on the automotive industry, the agreement was renewed several times and is still effective.

Use of measure

By implementation of short-time working scheme the company succeeded in maintaining employment, ensuring continuation of tyre production and protection of employees´  health, at the same time. Despite of the COVID-19 pandemic and decline in production, none of more than 3,200 employees was dismissed and the COVID-19 disease was not detected at any employee during more than five months. Redundant employees, affected by COVID-19 pandemic and related drop of production received state subsidy for wage replacement. For instance, by 21 May 2020, the Company obtained about €602,000 state subsidy to replace missing wages of employees. Nevertheless, the subsidy did not cover fully missing wages of the employees.

Contents

  • Employment retention
  • Health and safety

Target groups

Workers Businesses Citizens
Employees in standard employment
Sector specific set of companies
Larger corporations
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Companies
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

The company had experiences with economic crisis in 2008- 2009, and the local trade union organisation and the management in the company consulted the potential impact of drops in car sales caused by the COVID-19 disease in Europe on employment in the company. Social partners agreed that implementation of short-time working by redundant employees can maintain employment in the company, when needed. Conditions of practical implementations of short-time working scheme in the company were specified in the Supplement to company collective agreement, signed by the trade unions and the management.

Views and reactions

According to the Chair of local trade unions, trade unions in the company agreed with the proposals of the management and supported implementation of short-time working scheme. Its details were also specified in in-home regulations of the company.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      C - Manufacturing C22 Manufacture of rubber and plastic products

This case is not occupation-specific.

Sources

Citation

Eurofound (2020), Agreement on maintenance of employment in Continental Matador Company, measure SK-2020-8/1512 (measures in Slovakia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SK-2020-8_1512.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.