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Production at Gorenje stopped in pay dispute

Published 09/16/2009, 04:13 AM
Updated 09/16/2009, 04:15 AM

LJUBLJANA, Sept 16 - Production at Slovenia's largest household appliances maker, Gorenje, was stopped on Wednesday due to employees' dissatisfaction over wages, the company said.

Gorenje said most employees would return to full-time working in October due to higher demand for products, after production was cut at the start of the year. Gorenje was hit by the global economic crisis due to its dependency on exports.

Slovenia's second largest exporter said some employees stopped working on Tuesday while the strike spread to the whole factory on Wednesday.

"(This) morning workers did not start working and talks with social partners continue," Gorenje said in a statement.

In August, the company reported a net first-half loss of 18 million euros ($26.4 million), after a profit of 8 million in the 2008 period, while sales were down 8.3 percent to 568 million.

Gorenje shares were up 1.7 percent to 11.48 euros by 0810 GMT while the blue-chip SBI index rose 0.1 percent. (Reporting by Marja Novak, Edited by Dan Lalor) ($1 = 0.6810 euro)

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